Hill’s Pet Nutrition, a division of Colgate-Palmolive, posted a 30% year-over-year rise in Q1 operating profit, reaching €240 million, up from €185 million. Net sales increased 1.5% to €1.09 billion, accounting for 23.1% of Colgate’s total revenue.
Organic sales grew 2.9%, despite a 2.1% decline from reductions in private-label products. Excluding that, volume grew 1.7%, led by Science Diet and Prescription Diet. US sales grew in the mid-single digits, while Canada posted double-digit organic growth.
CEO Noel Wallace credited new marketing efforts and expanded product offerings. “We’ve really anchored in on a unique consumer insight,” he said during the April 25 earnings call. Hill’s is also expanding its wet cat food line, supported by its Tonganoxie, Kansas facility.
Colgate is shifting supply chain strategies to manage rising tariff costs. The company has invested €1.86 billion in US manufacturing over five years and increased domestic production by over 40%. CFO Stanley Sutula said the goal is to improve capacity use and reduce reliance on China.
Colgate-Palmolive’s total Q1 net sales declined 3.1% to €4.57 billion, while operating profit rose 3% to €1 billion. Organic sales were up 1.4%. Gross margin held at 60.8%, and SG&A expenses fell to €1.77 billion.
Tariffs are expected to cost Colgate €186 million in 2025. Wallace said the company is responding with pricing changes, alternative sourcing, and formula adjustments. Full-year sales are forecast to grow in the low single digits, with 2% to 4% organic growth and flat margins.