General Mills’ pet portfolio posts negative performance
Both revenue and net sales dropped by 4% in the last quarter amid less demand.
General Mills’ pet segment brought in a net revenue of $569.3 million (€518.7M) in the 3 months to 26 November 2023. This is 4% less than last year when it posted $592.9 million (€538.9M).
Organic net sales also went down 4%. Sales of wet pet food declined the most, while treats noted a double-digit rise compared to the same period in 2022.
The American manufacturing giant attributed the dip to “lower pound volume, partially offset by favorable net price realization and mix.”
“We have more work to do to navigate through the current challenging category dynamic and return the business to consistent topline growth,” says CEO and Chairman Jeff Harmening.
On the other hand, the segment’s operating profit rose by 18% to $102.5 million (€93.3M). The company’s global operating profit during the quarter increased by 2%.
In the 6 months leading to the end of November, net sales in the pet portfolio fell 2% to $1.14 billion (€1.03B) while operating profit increased by 2% to $213.7 million (€194.5M).
General Mills acquired dog and cat supplement company Fera Pets in November with the aim of bringing a “health-focused” dimension to the firm’s pet portfolio.
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