General Mills pet food sales top $580 million in last quarter
The American manufacturer posted global sales of $4.7 billion (+4%) despite the “highly volatile operating environment.”
In the first quarter of FY 2023 ended on 28 August 2022, the operating profit increased by 29% to $1.1 billion primarily driven by net gains on divestitures. The performance was partially offset by lower gross profit dollars and unfavorable net corporate investment activity.
The pet portfolio reached $123 million in operating profit, 7% more than the same period last year.
Kofi Bruce, Chief Financial Officer, highlighted that General Mills’ pet segment gained market share in the wet cat food category. Market share declined for dry pet food and treats due “to capacity constraints.”
The company said that the overall good performance of the pet business reflects the result of the $1.2 billion acquisition of Tyson Foods’ pet treats business in 2021.
2023 forecast
General Mills CEO Jeff Harmening announced to investors that given “the strength” of the quarterly results, and the confidence in their ability to adapt to continued volatility ahead, the company will increase the full-year outlook for net sales and operating profit.
The manufacturer now expects an increase of 6% to 7% in its organic sales, compared to the previous expectation of 4% to 5%. Adjusted operating profit has also been upgraded: flat and up 3%, compared to previous projections between down 2% and up 1%.
The company said it plans to invest in the growth capacity of its pet food brand Blue Buffalo.
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