Hill’s Pet Nutrition net sales increased 8.0% during the fourth quarter of calendar year 2019, according to a press release from parent company Colgate-Palmolive released January 31. Hill’s makes up 17% of company sales. Hill’s Pet Nutrition unit volume increased 3.5%, pricing increased 5.0% and foreign exchange was negative 0.5%. Pet food sales volume gains in the United States and Western Europe were partially offset by volume declines in Japan and South Africa. Hill’s organic sales increased 8.5%.
Hill’s operating profit increased 8% in fourth quarter 2019 to US$203 million, or 10 basis points to 29.9% of net sales. This increase in operating profit as a percentage of net sales was primarily due to an increase in other (income) expense, net, partially offset by an increase in selling, general and administrative expenses, both as a percentage of net sales. This increase in selling, general and administrative expenses was due to increased advertising investment partially offset by lower overhead expenses.
Successful products contributing to sales in the United States include the relaunched Hill’s Science Diet (with upgraded recipes, improved kibble shapes and redesigned package graphics), Hill's Treats and Hill's Prescription Diet Gastrointestinal Biome. Successful products contributing to sales internationally include Hill’s Prescription Diet Stews, Hill's Prescription Diet Gastrointestinal Biome and the relaunched Hill’s Science Diet.
About Hill’s Pet Nutrition
Hill's Pet Nutrition sells more than 300 products, principally through authorized pet supply retailers and veterinarians in more than 80 countries worldwide, according to Petfood Industry’s Top Pet Food Companies Current Data. A subsidiary of Colgate-Palmolive Co., Hill's products accounted for 15% of the parent company’s worldwide net sales in 2017, when pet nutrition accounted for US$15.5 billion net sales. Hill's operates major manufacturing and warehousing facilities in Bowling Green, Kentucky, Topeka, Kansas, Emporia, Kansas, and Richmond, Indiana, USA. The primary research center is located in Topeka, Kansas, USA. Hill's also runs major manufacturing and warehousing facilities in the Czech Republic and the Netherlands.