General Mills’ pet food and treat sales increased 16% in the second quarter of fiscal year 2020 (Q2 FY20). General Mills’ pet segment, including Blue Buffalo, reached US$389 million in net sales, up from US$335.2 million in the previous quarter.
Strong growth in Blue Buffalo’s two largest pet food lines, Life Protection Formula and Wilderness, led net sales performance. Advance holiday shipments also benefited net sales in the quarter.
General Mills’ pet segment operating profit increased by 14% in Q2 FY20 to US$81 million up from US$70.8 million in Q2 FY19. Higher net sales drove this growth, which was partially offset by higher media expenses.
Considering the six months preceding November 25, 2019, General Mills’ pet segment sales were US$756.5 million, up 11% from US$678.5 million during the same period in 2018. The company disclosed their Q2 FY20 financial results in an investors call on December 18.
General Mills’ pet food and treat retail sales across all channels increased by double digits in the first half of the year. During that period, pet segment operating profit reached US$162 million, up from US$85 million in first half of the previous year.
History of General Mills and Blue Buffalo
In February 2018, General Mills and Blue Buffalo Pet Products entered into a definitive agreement under which General Mills acquired Blue Buffalo for approximately US$8 billion. In August 2017, Blue Buffalo began selling in four FDM retailers: Target, Kroger, Publix and Meijer. General Mills purchased Blue Buffalo in February 2018. In fiscal year 2019, Blue Buffalo pet food sales grew by 11% to reach US$1.43 billion for the General Mills owned brand. General Mills’ pet segment operating profit hit US$268 million in FY19.
In October, Billy Bishop, co-founder of Blue Buffalo and General Mills’ pet segment president, left his role in active, daily management to become a brand advisor for General Mills.
