On June 26, General Mills reported financial results for its fourth quarter and fiscal year ended May 26. In the fourth quarter, net sales for General Mills’ pet segment, which includes Blue Buffalo, were down 8% to $602 million, driven by lower volume and unfavorable pricing.
In its pet segment, organic net sales also fell by 8%. According to the company, the quarter's net sales lagged behind all-channel retail sales by about 4 points, mainly due to a favorable trade expense comparison last year and a decline in retailer inventory. Pet segment operating profit, however, rose 8% to $144 million, thanks to cost savings, despite higher supply chain costs.
For the full year, pet segment net sales decreased by 4% to $2.4 billion. Organic net sales were 4% lower than last year's high-single-digit growth, but up 2% over two years.
Full-year net sales showed slight declines in dry pet food, significant declines in wet pet food, and moderate declines in treats. Segment operating profit increased by 9% to $486 million, driven by cost savings and better pricing, despite lower volume, higher supply chain costs and increased SG&A expenses.
“As we move into fiscal 2025, our top priority is to accelerate our organic net sales growth, and specifically our volume growth, by delivering remarkable experiences across our portfolio of leading brands,” said Jeff Harmening, General Mills chairman and CEO. “We plan to drive another year of strong Holistic Margin Management (HMM) cost savings, allowing us to reinvest in exciting growth ideas that meet evolving consumer needs.”
In the third quarter of fiscal year 2024, net sales for the General Mills' pet segment fell 3% to $624 million due to lower sales volume, despite higher prices and a better product mix. Organic net sales were also down 3% from last year but increased 5% over two years. The quarter saw drops in sales of pet treats and dry pet food, with growth in wet pet food partially balancing the decline.
About General Mills
According to Petfood Industry's top companies database, 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.
