Material costs hinder Hill’s Pet Nutrition profit Q2 2021

Hill's Pet Nutrition sells more than 300 products, principally through authorized pet supply retailers and veterinarians in more than 80 countries worldwide.

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(zaretsky.andrey | BigStock.com)
(zaretsky.andrey | BigStock.com)

Hill’s Pet Nutrition accounted for 19% of Colgate-Palmolive’s overall sales during the second quarter of 2021. During that period, Hill’s Pet Nutrition net sales of pet foods increased 18% compared to the second quarter of 2020. Second quarter operating profit for Hill’s reached US$212 million, up 11% from US$191 million in 2020. Net sales were US$794 million, compared to US$672 million during the second quarter of 2020.

Customers in the United States, Latin America and Europe led organic sales growth for Hill’s Pet Nutrition. However, operating profit declined as a percentage of net sales. This was primarily due to higher raw ingredient and packaging material costs, along with increased advertising expenditures. The decline was partially offset by higher pricing and cost savings from company initiatives.

For the first six months of 2021, ending June 30, Hill’s Pet Nutrition net sales were US$1,580 million, up from US$1,391 in 2020. Operating profit during that period increased from US$393 million in 2020 to US$427 million in 2021.

Colgate-Palmolive announced financial results for Hill’s Pet Nutrition on July 30.

About Hill’s Pet Nutrition and Colgate-Palmolive

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 Companies Current Data. Hill's operates major manufacturing and warehousing facilities in Bowling Green, Kentucky; Topeka, Kansas; Emporia, Kansas; and Richmond, Indiana, USA. Its 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. Hill’s annual revenue in 2020 was US$2,525,000,000.

The Colgate-Palmolive Company sells its products in more than 200 countries and territories under brands such as Colgate, Palmolive, elmex, hello, meridol, Sorriso, Tom’s of Maine, EltaMD, Filorga, Irish Spring, PCA Skin, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet. 

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