Treats and dry food: General Mills’ negative performance in pet portfolio continues

General Mills reported net sales of $624 million (€574.7M) in the third quarter of its fiscal year (FY) 2024, following a similar trend to its previous quarter. 

The Minnesota-based manufacturer noted that the quarter saw declines in pet treats and dry pet food, which was partially offset by growth in wet pet food. 

Similarly, organic net sales were 3% less than the year previous, which had grown in double digits. On a 2-year compound growth basis, though, organic net sales were up 5%. 

However, its segment operating profit saw a 25% increase to $128 million (€117.9M). 

In the 9 months to 26 February 2024, General Mills’ pet segment’s net sales stood at $1.8 billion (€1.6B), a decrease of 2%. Organic sales also decreased by 2%, while segment operating profit rose 10% to $342 million (€315M). 

Overall results 

In Q3 FY 2024, General Mills recorded net sales of $5.1 billion (€4.7B) across all its businesses, a decrease of 1%. Organic net sales were also down 1%. 

However, on a 2-year compound growth basis, net sales were up 6% and organic net sales were up 7%. The company’s operating profit stood at $911 million (€839.1M), up 25%, while its adjusted operating profit of $914 million (€841.8M) increased 14% in constant currency. 

Positive forecast

For its fiscal 2024 outlook, the multinational manufacturer expects the economic health of its consumers, the moderating rate of input cost inflation and “increasing stability” in the supply chain to significantly affect its performance. 

Reaffirming its full-year 2024 financial targets, General Mills has set sights on its organic net sales range between down 1% and flat and adjusted operating profit and adjusted diluted earnings per share to rise 4% to 5% in constant currency.