General Mills, Inc. reported mixed results for its first quarter ended August 25, 2024, noting its pet segment, particularly the Wilderness brand, showed only moderate improvement and remains below growth targets.
Starting in fiscal year 2025, General Mills has renamed its Pet segment to "North America Pet" to show that pet food sales outside North America are now included in its International segment. This name change didn’t affect past operating results, said the company.
In the first quarter, net sales for the company's North America Pet segment dropped by 1% to $576 million. According to the company, this decline was due to lower pricing and product mix, though it was partly balanced by an increase in volume. Organic net sales also fell by 1%. Sales for pet treats decreased by mid-single digits, wet pet food sales fell by low-single digits, and dry pet food sales remained about the same.
The pet segment's operating profit increased by 7% to $119 million, thanks to cost savings, lower supply chain expenses, and higher volume, which were offset by lower pricing, inflation in input costs, and a significant increase in media spending, noted Jeff Harmening, chairman and CEO of General Mills, during the company’s earnings call on September 18.
"In North America Pet, we delivered improved trends on our retail sales and market share in Q1," said Harmening. "Blue Buffalo grew share in dry feeding, which represents more than 60% of our net sales base, thanks to remarkable brand communication that drove continued strong growth on Life Protection Formula and Tastefuls.
"On Wilderness, we made progress reducing our retail sales declines in Q1, and we expect to drive sequential improvement again in Q2 as our new advertising gains traction and our grain-free varieties and smaller pack sizes benefit from incremental distribution," he added.
Harmening noted the company is introducing more new products in its Treats category, including extra seasonal items, which should boost sales in the second half of 2025.
On April 30, General Mills acquired Edgard & Cooper, a European premium natural pet food brand. While Edgard & Cooper's sales weren't included in the company's organic growth, Harmening noted its strong double-digit growth contributed to the International segment's results in the first quarter.
According to Petfood Industry's Top Pet Food Companies, General Mills is a North American manufacturer and marketer of consumer foods and pet food. General Mills entered the pet food market in 2018 with the acquisition of Blue Buffalo, which is manufactured in the U.S. through a hybrid network of owned and contracted facilities. The company's dry formulas include LifeSource Bits, a blend of nutrients and antioxidants. In April 2024, the company acquired Edgard & Cooper, one of Europe’s leading independent premium pet food brands.
