H&H Group is targeting high‑single‑digit growth for its pet portfolio in 2026, a strategy built on accelerated performance in high‑margin nutritional supplements. The Hong Kong‑based company’s Pet Nutrition and Care (PNC) segment posted RMB 1.1 billion ($153 million/€131 million) in revenue for the first half of the year, a 1% increase over the same period in 2025.
Shift to localization and U.S. dominance
Revenue growth on a like‑for‑like (LFL) basis was 4.8%, driven largely by success in North America. That region accounted for 86.1% of the PNC segment’s total revenue, with mainland China contributing 11.7% and other markets making up the remaining 2.2%.
This performance is largely the result of a proactive shift toward supply localization in China, which led to an expected 37.7% decline in sales there. Meanwhile, the company continued to expand its footprint across Europe, Asia, and ANZ, leveraging its core strengths in premium nutrition.
The U.S. market remains the primary engine for growth.
Sales of the supplement brand Zesty Paws grew 16.7% on an LFL basis from January to June 2026. The brand is present in more than 23,000 stores across the country, including Walmart, PetSmart, and Petco, and has seen success on e‑commerce channels like Amazon and Chewy.
Related: Australia M&A climate holds back Greencross deal
According to H&H’s Chairman Luo Fei, Zesty Paws remains one of the best‑known pet supplement brands in the United States. Sales of the pet food brand Solid Gold also returned to growth, increasing 6.3% on an LFL basis, primarily due to the expansion of its e‑commerce presence. Solid Gold is now present in roughly 4,000 U.S. stores.
High‑margin supplements drive overall profitability
High‑margin nutritional supplements across all three of the company’s business segments grew 13.3% year‑over‑year on an LFL basis. These products contributed 60.2% of the group’s total revenue during the period.
While the pet segment is growing, the company is approaching the market differently than it has in the past. The current strategy relies less on a single product category and more on a diversified portfolio of premium goods, a shift that allows for steadier performance even if specific brands face headwinds. This approach contrasts with earlier periods where growth might have been concentrated in a single high‑flying line, making the current mix more resilient to market fluctuations.
Overall, the group recorded a 23.9% increase in revenue to RMB 8.7 billion ($1.2 billion/€1 billion). EBITDA rose 53.3% to RMB 1.6 billion ($221 million/€190 million), while net profit surged 760% to RMB 610.6 million ($85.5 million/€73.3 million).
