General Mills’ pet business profit sees a 7% dip in the last quarter
The sales in the category hit $646 million in the period.
Enhanced customer service, improved brand-building, commercial activities, and an overhaul of retailer inventory helped General Mills’ pet business to increase its sales by 14% in the third quarter of FY 2023 ending 26 February.
The pet portfolio’s operating profit decreased by 7% to $103 million (€94.6M) due to inflation, capacity expansion and service improvement costs, higher operating expenses, and a “double-digit” investment in media spend.
During the 9 months to 26 February 2023, the segment’s net sales grew 10% to $1.8 billion (€1.65B), boosted by the acquisition of Tyson Foods’ pet treat firm. While operating profit dipped 13% to $312 million (€286.5M).
General Mills Chairman and CEO Jeff Harmening said the company built on positive momentum and delivered strong results.
Expanding operations
The company’s pet food manufacturer Blue Buffalo announced the investment of $200 million (€186.4M) in expanding its operations in Richmond (Indiana) in a bid to boost processing operations and warehouse capacity.
The plant is expected to enter into service by the end of 2024.
The company anticipates that this expansion will boost the manufacturer’s footprint by 40% as well as production for customers in the US and Canada.