General Mills’ pet sales increased by 30% in the last 12 months
The American manufacturer, which recently acquired three dog treats brands, claims the pet business accounted for 11% of its total net sales in FY 2022.
The company’s pet business net sales increased from $1.73 billion (€1.66B) in 2021 to $2.26 billion (€2.16B) in 2022.
The operating profit for the segment rose by 13% in the last 12 months to $471 million (€450.9M).
During the fourth quarter, net sales for the pet segment increased by 37%, from $444 million (€425M) in the same period last year to $610 million (€583.8M). Organic net sales were up 22%.
Segment operating profit increased by 10% from $103 million (€98M) to $113 million (€108.2M) in the fourth quarter, propelled by a “favorable net price realization and mix and higher volume, including benefits from the pet treats acquisition, partially offset by higher input costs and higher selling, general and administrative expenses.”
Momentum in 2023?
Company CEO Jeff Harmening claimed that FY 2022 was “another successful” period for the company.
In 2022, General Mills announced the acquisition of Tyson Foods’ pet treats business for $1.2 billion (€1.1B). This transaction included the Nudges, True Chews, and Top Chews pet treats brands in North America. These acquisitions aimed to increase the company’s top- and bottom-line growth profile over the long term.
The company believes that the next fiscal year will see “strong momentum” for the business, with organic net sales increasing by 4% to 5% despite the current economic situation and disruptions in the supply chain.
Harmening also noted to investors that they are planning to “compete effectively” by investing in their brands and capabilities as well as reshaping their portfolio.
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