General Mills reports new decline in pet food sales

The company’s pet segment reported a 1% year-on-year (YoY) decline in net sales in the first quarter of its fiscal year (FY) 2025, which ended on 25 August. Sales fell to $576 million (€515.7M) from $580 million (€519.2M) against the same period the previous year.

General Mills’ pet segment saw a 4% year-on-year (YoY) decline in net sales during the fourth quarter of FY 2024 as well.

Organic net sales fell by 1% year-on-year. Pet treats experienced a “mid-single-digit” decline, wet pet food saw a “low-single-digit” drop, while dry pet food sales remained flat.

Increased operating profits

However, operating profits for its pet food rose by 7% to $119 million (€106.5M), up from $111.2 million (€99.5M) in Q1 FY2024, accounting for 20.7% of net sales.

Financial gains from cost-saving initiatives were partially offset by “unfavorable price realization, input cost inflation, and a double-digit increase in media investment.”

CEO Jeff Harmening emphasized that the company “achieved anticipated growth” in the quarter. He affirmed that the company will “continue to work to improve our competitiveness and get back to leading growth in our categories.”

International business

General Mills’ international sales, which includes pet food, hit $717 million (€641.7 million), matching its performance in the first quarter of FY24 ($717M/€643.8M).

In this segment, organic net sales decreased by 1% YoY, due to lower sales in China which was offset by growth in Europe, Australia, and distributor markets.

General Mills acquired Belgium-based pet food player Edgard & Cooper for $434 million (€388.5M) earlier in the year.

In Q1 2025, the company paid $8 million (€7.1M) for the acquisition and incurred an additional $2 million (€1.7M) in integration costs.

2025 outlook

By the end of the FY, the manufacturer’s organic net sales are expected to be flat or increase by up to 1%. Operating profit is expected to decrease by 2% or stay the same, when not factoring in dollar value changes.

General Mills plans to invest in product innovation and cost-saving strategies to improve “volume trends” and drive organic net sales growth across its key food brands.