General Mills sold less pet food in FY 2024

General Mills’ pet segment’s net sales were down 4% year-on-year (YoY) between May 2023 and May 2024 to $2.37 billion (€2.2B). The portfolio’s net sales in the previous year accounted for $2.47 (€2.29B) billion.

There was a “low-single-digit decline” in pet food, a “mid-single-digit decline” in treats and a “high-single-digit decline” in wet pet food.

“Our overall competitiveness fell short of our expectations in fiscal ’24 driven in part by more challenging consumer sentiment across our core markets that impacted our categories, including both human and pet food,” admits Chairman and Chief Executive Officer Jeff Harmening.

The operating profits for the pet portfolio increased 9% to $485.9 million (€451.5M) in FY24, compared to $445.5 million (€414M) in FY 2023.

The American manufacturing corporation says that compared to 2022, pet sales increased by 2%.

Mixed Q4 results

In the last quarter of FY 2024, net sales of General Mills’ pet segment declined to $602.1 million (€559.5M), an 8% decrease from $655 million (€608.7) during the same quarter of FY 2023.

However, operating profits improved by 8% to $143.9 million (€133.7M), against $133.2 million (€123.8M) in 2023.

This quarter, the Minneapolis-headquartered multinational acquired Belgian pet food producer Edgard & Cooper for $434 million (€407.1M). The company says that $8 million (€7.4M) is expected to be paid by the first quarter of FY 2025.

“We have conducted a preliminary assessment of the fair value of the acquired assets and liabilities of the business and will continue to review these items during the measurement period,” the firm says.

Future forecast

General Mills expects that organic net sales and adjusted operating profit will remain flat in FY 2025.

The company’s priority for the year will be accelerating organic net sales and volume growth. “We plan to drive another year of strong cost savings, allowing us to reinvest in exciting growth ideas that meet evolving consumer needs,” concludes Harmening.

General Mills says it will increase media investment in the Blue Buffalo pet food brand while optimizing the price point of its wet food line, launching smaller-size treat packs and expanding its product range to include grain and grain-free options.