HONG KONG — Health and Happiness International Holdings Limited (H&H Group), owner of Zesty Paws and Solid Gold Pet brands of pet supplements and nutrition products, shared its first-quarter earnings report for the three-month period ended March 31. Zesty Paws and Solid Gold Pet make up the company’s Pet Nutrition and Care (PNC) segment, which was established when H&H Group acquired Solid Gold Pet in November 2020, and which operates alongside its Adult Nutrition and Care (ANC) and Baby Nutrition and Care (BNC) segments.
According to the company, its PNC and ANC divisions were key contributors to growth over the quarter, while its BNC division remains the most significant contributor to revenue.
Sales for the PNC segment totaled 447.9 million yuan ($64.67 million USD) over the first quarter, up 29.2% year-over-year. Segment sales were up 13.9% year-over-year in mainland China, led by Solid Gold, which holds the No. 2 position in the online premium dry cat food category, according to H&H Group.
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“2023 has kicked off with an encouraging Q1, setting the Group up for a promising growth outlook for the rest of the year,” said Akash Bedi, interim chief executive officer and chief strategy and operations officer at H&H Group. “The Group remained agile and flexible, while reaffirming our leading brand position across multiple markets and ensuring consumer innovation continues to fuel brands’ growth. We are particularly pleased with the continued strong performance of Swisse in mainland China and Australia and New Zealand, along with the growth of the PNC segment in mainland China and North America, led by Zesty Paws.”
In late March, the company announced it had expanded distribution of Zesty Paws into the UK market to further its international footprint and bolster pet care segment sales in the region.
“Since our acquisition of Zesty Paws was completed in 2021, North America has become a major source of growth for the Group as we capitalized on the growing pet nutrition industry trends,” Bedi said. “We’re pleased with the performance of both Zesty Paws and Solid Gold in their home market, with Zesty Paws expanding its retail reach in the first quarter of 2023 by adding CVS and Tractor Supply to its distribution network, in addition to Walmart, Target, PetSmart and independent pet stores. It was also encouraging to see Solid Gold follow Zesty Paws to enter leading retailer, Walmart. These expansions aim to increase our retail penetration and attract a wider consumer base.”
According to H&H Group, Zesty Paws products are now found in more than 9,800 stores across North America, and Solid Gold products are now found in 4,300 stores.
“The Group focused on expanding Solid Gold’s presence both online and offline, with the brand now reaching 7,901 supermarkets, pet stores and pet hospitals in the offline market,” Bedi said. “These wins were supported by our focus in remaining at the forefront of consumer and industry trends, such as the increase in pet adoption rates and spending on premium pet nutrition.”
The company stated it will continue to hone in on growth, globalization and the diversification of its portfolio, and will also focus on maintaining its leading e-commerce position on Amazon and Chewy in North America.
Overall, the company reported first-quarter sales of 3.15 billion yuan ($454.56 million USD), up 17.3% year-over-year. Mainland China represents the company’s largest market with sales of 2.23 billion yuan ($322.51 million USD), followed by Australia and New Zealand (ANZ) at 396.2 million yuan ($57.20 million USD) and North America at 362.0 million yuan ($52.26 million USD). Other Territories accounted for 156.4 million yuan ($22.58 million USD) in sales in the first quarter.
Bedi also shared the company’s progress on ESG commitments, including sustainability KPIs and greenhouse gas emission reduction targets.
“In April 2023, we fulfilled the sustainability-linked loan 2022 Key Performance Indicator (KPI) by publicly committing to develop science-based targets aligning with the Science Based Targets initiative (SBTi) framework, which has received official approval,” he said. “As a next step, we plan to submit our GHG emissions reduction targets to SBTi for their validation."
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