Cat food and treats drive General Mills’ Q3 growth

General Mills’ North America pet segment reported a 3% increase in net sales to $640 million (€589M) in the third quarter of fiscal year (FY) 2026, ending 22 February.

According to the company, the growth was supported by a 6-point benefit from the Whitebridge Pet Brands acquisition in January 2025. However, organic net sales declined 3%.

Operating profit rose 1% to $103 million (€95M) and was essentially flat year-over-year (YoY) in constant currency. Within the segment, cat food net sales rose double digits, driven by the Tastefuls and Tiki Cat brands, while pet treats increased mid-single digits.

According to Jeff Harmening, Chairman and CEO of General Mills, growth in the Tastefuls brand was supported by investment in head-to-head advertising, stronger retailer execution and a new gravy innovation driving expanded distribution.

Dog food declined mid-single digits, despite improved performance in the dry dog segment, led by low-single-digit growth from the Life Protection Formula brand.

Net sales

Net sales at the company as a whole declined 8% YoY to $4.4 billion (€4.05B) during the period, following a 7% YoY decline in the previous quarter. The Q3 decrease includes a 6 percentage point headwind from the net impact of divestitures and acquisitions and a 1 point benefit from foreign currency exchange.

Organic sales for the period also fell 3% YoY, driven by lower organic pound volume and unfavorable net price realization and mix.

Operating profit declined 41%, reflecting lower gross profit dollars in fiscal 2026 and a divestiture gain in the prior-year period. Net earnings plunged 52% to $303 million (€279M).

9M performance

For the first 9 months (9M) of FY2026, net sales declined 7% YoY to $13.8 billion (€12B), while organic net sales fell by 3%.

In the pet segment, net sales increased 6% to $1.9 billion (€1.75B), including a 9-point benefit from the North American Whitebridge Pet Brands acquisition.

Organic sales, however, slipped 2% YoY, while segment operating profit declined 6% to $339 million (€312M), driven by higher input costs and expenses, including investments to support the launch of Love Made Fresh, a new fresh dog food line under the Blue Buffalo brand. This was partially offset by favorable net price realization and mix, as well as higher volume.

Harmening noted that the Love Made Fresh brand has currently distributed more than 5,000 coolers since its launch 5 months ago. “Our new advertising campaign is driving early consumer awareness and trial, helping us reach a mid-single-digit market share position in Q3 in some of our initial customers,” he adds.

Guidance

General Mills reaffirmed its fiscal 2026 outlook, forecasting organic net sales to decline 1.5% to 2%. Adjusted operating profit and adjusted diluted earnings per share are expected to decrease 16% to 20% in constant currency.

CFO Kofi Bruce says the guidance reflects assumptions of a partial reversal of the retailer inventory headwind experienced in Q3, as well as a reduction in the adjusted effective tax rate compared to last year, driven by certain non-recurring tax benefits.

“As we move to the fourth quarter, we expect to deliver a step up in organic sales trends and return to earnings growth, driven by favorable timing comparisons, the 53rd week and our continued market share momentum,” concludes Chairman and CEO Jeff Harmening.