General Mills pet product sales flat as retailers reduce inventory

General Mills (GM) faced challenges in Q3 FY2025 – from 23 November 2024 to 23 February 2025 – with sales and earnings impacted by retailer inventory reductions and a softer pet food market.

The company’s net sales across its entire business portfolio were down 5% to $4.8 billion (€4.4 billion) due to lower pound volume and an unfavorable foreign currency exchange.

“Our Q3 results finished below our expectations, driven largely by greater-than-expected retailer inventory headwinds and a slowdown in snacking categories – two developments we initially called out at the CAGNY conference last month,” says CEO Jeff Harmening.

Operating profit was down 2% to $891 million (€823M), with adjusted net profit down 13%. Diluted earnings per share of $1.12 (€1.03) were down 4%, and adjusted diluted earnings per share of $1.00 (€0.92) were down 15% in constant currency.

Pet sales flat

For GM’s North American pet food businesses, Q3 net sales were essentially flat from the previous year at $624 million (€576M), helped by the acquisition of Whitebridge Pet Brands during the quarter.

Operating profit was down 20% to $102 million (€94M), impacted by a double-digit increase in media investment and higher input costs.

Organic net sales decreased 5%, reflecting a reduction in retailer inventory, which led to a lag of approximately 5 points relative to all-channel retail sales. Wet pet food and pet treats segments each saw mid-single-digit growth in net sales, while dry pet food saw a mid-single-digit decline.

Encouraging signs

For the first 9 months of GM’s FY2025, its North American pet segment posted net sales up 1% to $1.8 billion (€1.7B) while operating profit increased 6% to $361 million (€333M).

“Across North America Pet, we drove another quarter of pound share growth on Blue Buffalo in Q3, with performance led by our Life Protection Formula (LPF) dry dog food business,” explains Harmening.

Strong media investment, activations across key retail partners and a major addition to the company’s product range have driven its LPF results.

“Salmon is an on-trend protein variety geared toward pet parents who are increasingly seeking chicken-free options. This addition to our LPF portfolio has already received strong retail enthusiasm and early distribution wins,” he says.

Other highlights include year-over-year (YoY) growth for its Wilderness Line, driven by the launch of grain-free varieties, which have performed above expectations.

International growth

Outside the North American market, GM’s CEO says he is encouraged by the strong momentum for the Edgard & Cooper European pet food business, which continued to post double-digit net sales growth, including benefits from its recently launched cat treats line.

GM plans to expand its portfolio of brands available in China, including Blue Buffalo. The company’s pet products are a relatively recent addition to its offering in the country, where it has sold human food since the 1990s.

Across the GM business, the outlook for Q4 includes challenges similar to those of Q3, with the company focusing on maintaining its position and aiming for stronger growth in FY2026.

“While we’re proud of the improvements we’ve made to our Pet business in recent quarters, we know there is still work to be done to get back to the level of growth we aspire to over the long term. We’ll look to continue building on our positive momentum in Q4, supported by another strong increase in media investment,” Harmening concludes.