Sales of Hill’s Pet Nutrition pet food products, owned by Colgate-Palmolive Company, increased by six percent in the fourth quarter of 2018.
Colgate-Palmolive announced these pet food sales results for the fourth quarter of 2018 on Jan. 25. Including pet food and all other sectors, Colgate-Palmolive worldwide net sales stood at US$3,811 million for the period, a decline of two percent compared to fourth quarter 2017.
Hill’s Pet Nutrition economic performance
Hill’s Pet Nutrition accounted for 17 percent of Colgate-Palmolive sales overall. Hill’s unit volume increased 3.5 percent, while pricing increased 4.5 percent. Hill’s organic sales increased eight percent.
Foreign exchange was negative two percent or Hill’s. While volume grew in the United States and Western Europe, these gains were partially offset by volume declines in Russia.
Hill’s operating profit grew six percent to US$188 million. However, as a percentage of net sales, operating profit decreased 20 basis points to 29.8 percent of net sales.
“This decrease in operating profit as a percentage of net sales was due to a decrease in gross profit and an increase in other (income) expense, net, largely offset by a decrease in selling, general and administrative expenses, all as a percentage of net sales,” wrote Colgate-Palmolive representatives in a press release. “This decrease in gross profit was primarily due to higher raw and packaging material costs, partially offset by cost savings from the company’s funding-the-growth initiatives and higher pricing.”
The decline in selling, general and administrative expenses resulted from lower overhead expenses partially offset by increased advertising investment.
Hill’s Pet Nutrition product sales successes
These pet food products were noted as contributing to Hill’s U.S. sales:
- Hill’s Bioactive Recipe,
- Hill’s Prescription Diet Metabolic + Urinary,
- Hill’s Prescription Diet k/d and k/d + Mobility,
- Hill’s Prescription Diet k/d Early Support,
- Hill’s Science Diet Youthful Vitality,
- Hill’s Science Diet Kitten and
- Hill’s Science Diet Perfect Weight.
These pet food products were noted as contributing to Hill’s international sales:
- Prescription Diet k/d and k/d + Mobility,
- Hill’s Prescription Diet Metabolic + Urinary,
- Hill’s Prescription Diet k/d Early Stage,
- Hill’s Science Diet Youthful Vitality and
- Hill’s Science Diet Kitten.
