MALAYSIA – Hill’s Pet Nutrition Asia Limited has partnered with DKSH Business Unit Consumer Goods to expand its presence in the Malaysian pet food market by leveraging DKSH’s distribution network.
Hill’s Pet Nutrition is one of the largest pet food companies in the USA, and it sells more than 300 products, principally through authorized pet supply retailers and veterinarians in more than 80 countries worldwide.
On the other hand, DKSH is a company that helps other businesses expand in Asia, and it will provide the American pet food company with market expansion services, which include marketing, sales, distribution, logistics, credit, collection, and other services.
Additionally, DKSH will utilize an omnichannel approach to expand the distribution of Hill’s Prescription Diet and Science Diet lines into pet shops, veterinary clinics, and hospitals.
Hill’s Prescription Diet offers therapeutic formulas designed to address specific medical conditions in pets and are only available through licensed veterinarians.
“This collaboration between DKSH and Hill’s Pet Nutrition underscores our joint dedication to the welfare and well-being of pets in Malaysia,” said Puneet Mishra, head of country management and vice president of FMCG at DKSH Malaysia.
By utilizing DKSH’s robust distribution capabilities and Hill’s Pet Nutrition’s exceptional pet food offerings, the two companies will drive market penetration and reach a wider audience of pet owners.
“We are excited by this new partnership and the capabilities that DKSH brings,” said Brad Gale, general manager of Hill’s Pet Nutrition Asia Limited. “This collaboration is key to helping us deliver on our mission, to help enrich and lengthen the special relationships between people and their pets by providing the best pet nutrition in the world.”
Hill’s Pet Nutrition sales up, profits down again Q2 2023
Meanwhile, the sales of Hill’s Pet Nutrition increased to US$1,056 million in the second quarter while profitability declined in comparison to 2022.
Additionally, Hill’s Pet Nutrition made up 22% of parent company Colgate-Palmolive’s sales in the second quarter of 2023.
According to the company, the United States and European pet food markets led Hill’s organic sales growth led by, this was partially offset by organic sales declines in Australia.
Continuing a trend from previous periods, Hill’s Pet Nutrition sales increased in the second quarter while profitability declined in comparison to 2022.
Operating profit as a percentage of net sales declined in the second quarter primarily due to higher raw and packaging material costs, unfavorable mix due to private label sales resulting from acquisitions, and increased advertising investment.
The decline was partially offset by higher pricing, cost savings from Colgate’s funding-the-growth initiatives, and lower overhead expenses.