Double-digit growth in pet segment supports General Mills through second quarter

Jeff Harmening, chairman and CEO of General Mills, commented on the company’s pet segment performance over the quarter, saying, “I am pleased to say that we had a great second quarter with net sales up 16%. Our Q2 growth was driven by strong growth in the Food, Drug and Mass and e-commerce channels, positive price mix and a benefit from the timing of shipments in advance of holiday merchandising.”

Total pet segment earnings over the six month period totaled $756 million, an increase of 11%, according to the company. Blue Buffalo’s two largest product lines, Life Protection Formula and Wilderness were key drivers of the net sales growth, according to the General Mills.

Operating profit for the company’s pet division also increased to $81 million, up 14%. General Mills attributed this to higher net sales “partially offset by higher media expense,” it wrote in a press release.

The pet segment’s operating profit for the last six months is up a staggering 90.6% to $162 million compared to year-ago profit, which the company attributed to higher net sales as well as $53 million inventory adjustment purchase in fiscal 2019 that set back its operating profit at the time. 

General Mills’ pet business remains lowest on the totem pole in terms of sales but, after driving growth consistently over the past year, has proven a profitable venture for the company following its acquisition of Blue Buffalo in April 2018.

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