Hill’s Pet Nutritiona division of Colgate-Palmolive, recently released its financial results for the fourth quarter (Q4) ended December 31.
Net sales for Hill’s Pet Nutrition totaled $1.11 billion, up 5% from $1.06 billion in the fourth quarter of fiscal 2022, the company reported. Operating profit was $231 million for the segment, down slightly from $233 million in fiscal 2022 in Q4.
Organic sales for the fiscal year demonstrated a robust growth of 10.5%, with pricing increasing by 11%.
Reported volume was down 4% reflecting the impact of lower private label volume, said the company. Organic sales exhibited a growth of 4.5%, with pricing rising by 8.5%. Organic volume, however, experienced a 4% decline during the quarter. The decrease in volume was attributed to lower private-label pet food volumes.
Hill’s Pet Nutrition’s operating profit represented 20.7% of net sales in the fourth quarter, down 130 basis points year-over-year.
The company noted the decrease in operating profit as a percentage of net sales was primarily due to significantly higher raw and packaging material costs, increased advertising investment and startup costs associated with a new manufacturing plant, partially offset by higher pricing and cost savings from the company’s funding-the-growth initiatives, noted the