Can General Mills Sustain Momentum on Pet Unit, Saving Plans?

Also, General Mills is benefiting from robust saving efforts, which helped it witness improved margins in the first quarter of fiscal 2020.

These upsides have helped this branded consumer foods provider to stay in investors’ good books. In fact, this Zacks Rank #3 (Hold) stock has soared 36% so far this year, outpacing the industry’s growth of 13.1%.

The acquisition of Blue Buffalo Pet Products (concluded in fiscal 2018) has made General Mills one of the leading players in the pet food arena. Blue Buffalo, which forms General Mills’ Pet segment, manufactures and markets wholesome natural pet food items. The company’s first-quarter fiscal 2020 sales received partial support from the strong Pet segment.

Revenues at the Pet segment came in at $368 million in the last reported quarter, up 7% year over year on the back of volumes growth, favorable net price realization and mix impacts. Further, the expansion in the food, drug and mass network is a key driver for the company. Management earlier stated that it anticipates sales and operating profit at the Pet segment to grow significantly in fiscal 2020.