Hill’s Pet Nutrition continues to support Colgate-Palmolive

NEW YORK — Hill’s Pet Nutrition is keeping up momentum driven by volume growth and new product innovations as parent company Colgate-Palmolive experiences rising raw material costs, demonstrated by the company’s second quarter financials for the three months ended June 30, 2025. 

For Hill’s Pet Nutrition, net sales were reported at $1.16 billion, a 3.8% increase from $1.11 billion in the prior year period. Hill’s continues to lead Colgate’s overall business, with its net sales representing 23% of the company’s total sales, just behind its Latin America division. Organic sales rose 2%, organic volume dropped 0.9% and pricing was 2.9%. As of the end of July, the company is no longer producing private-label pet food.

Operating profit was reported at $264 million (representing nearly 23% of total net sales), a 13% increase from the prior year period. 

Continued volume growth for Hill’s was attributed to strength in its Prescription Diet line. The company’s US organic sales rose mid-single digits, experiencing both growth in volume and pricing during the quarter. Additionally, the acquisition of Prime100 added about 1% to Hill’s volume growth.

To continue momentum, Hill’s has launched several innovations. Earlier in the year, the company relaunched its Science Diet core dry life stage portfolio, enhanced with ActivBiome+ Multi-Benefit, a blend of prebiotic fibers and antioxidants to support digestive, immune and organ health. On the prescription side, it launched Prescription Diet Multi-Organ and Prescription Diet Brain Care + j/d to provide additional options for pets with complex nutritional needs and address health concerns that are difficult to see. 

In addition, Hill’s released its new “Because You’re Only Human” advertising campaign, which is gaining momentum, generating awareness and retailer excitement, according to the company. The company plans to use the campaign to drive household penetration. 

For the first six months of 2025, Hill’s net sales were reported at $2.28 billion, a 2.66% increase from $2.22 billion in the prior year. Organic sales rose 2.5%, organic volume dropped 0.6% and pricing was 3%. Operating profit was reported at $523 million, a whopping 20.79% increase from $433 million in the prior year.

Overall, second quarter net sales were reported at $5.11 billion, a 1% increase from $5.06 billion in the second quarter of 2024. Organic sales growth was 1.8%. Gross profit was reported at $3.07 billion, an increase from $3.06 billion in the prior year period. Gross profit margin was 60.1%, a slight drop from 60.6% in the prior year.

Operating profit was reported at $1.08 billion, a decrease from $1.09 billion in the prior year period. Operating profit margin was 21.1%, a slight dip from 21.6%. Selling, general and administrative (SG&A) expenses were $1.96 billion, an increase from $1.94 billion in the prior year. 

“I am pleased that Colgate-Palmolive people achieved another quarter of net sales, organic sales and earnings per share growth in the face of continued difficult market conditions worldwide, with organic sales growth improving sequentially versus the first quarter despite an even greater negative impact from lower private label pet sales,” said Noel Wallace, chairman, president and chief executive officer of Colgate-Palmolive. 

For the first six months, net sales were reported at $10.02 billion, a 1.02% decrease from $10.12 billion in the first six months of 2024. Gross profit was $6.06 billion, a decrease from $6.11 billion in the prior year. Gross profit margin was 60.4%, a slight increase from 60.3% in the prior year.

Operating profit for the first six months was reported at $2.16 billion, an increase from $2.14 billion in the prior year period. Operating profit margin was 21.5%, a slight increase from 21.1%. SG&A expenses were $3.86 billion, a slight increase from $3.85 billion in the prior year.

Additionally, Colgate-Palmolive announced a new three-year productivity program to foster future growth and support its 2030 strategy. Through the program, the company plans to better align its organizational structure, simplifying and streamlining it to reduce overhead costs; and optimize its global supply chain. This program is projected to result in cumulative charges between $200 and $300 million over the course of three years. 

The company also shared its full year 2025 guidance, which includes the estimated impact of tariffs finalized on July 31. Colgate still expects net sales to be in low single digits. Organic sales growth is expected to be on the low end of between 2% and 4%, which includes the ending of its private-label pet sales. 

Operationally, the company expects costs for raw and packaging material to rise, especially for fats and oils. In its previous 2025 guidance, the company expected a tariff impact of about $200 million to the cost of goods sold. Now the company expects a tariff impact of about $75 million. 

“We feel we are well positioned to deal with the year-to-date volatility in category growth and uncertainty in global markets,” Wallace shared. “Guided by our strategic framework, including our focus on innovation and the strength of our global portfolio, our teams on the ground continue to execute with excellence and focus to achieve our 2025 financial targets.”

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