Adapted from a press release:
In the fourth quarter of fiscal year 2023, net sales increased 7% to US$655 million for General Mills’ pet foods, treats and other pet segment products. The company reported its most recent financial data on June 29, covering both the current quarter and all of fiscal year 2023. General Mills’ organic net sales were also up 7%. Dry pet food net sales increased by double digits. Pet treat sales went up by high single digits. However, wet pet food net sales declined by high-single digits. General Mill’s pet segment operating profit increased by 18% to US$133 million. This growth was driven primarily by favorable net price realization and mix, and cost savings, partially offset by input cost inflation, higher SG&A expenses, including a double-digit increase in media investment, and higher other cost of goods sold.
In fiscal year 2023 overall, General Mill’s pet product net sales increased 9% to US$2.5 billion with organic net sales up 9% too. Net sales were up double digits for dry pet food and pet treats and were flat for wet pet food. Segment operating profit was down 5% to US$446 million, driven primarily by higher input costs, higher SG&A expenses, and lower volume, partially offset by favorable net price realization and mix.
Overall, General Mills expects the most significant factors impacting its performance in fiscal 2024 will be the economic health of consumers, the moderating rate of input cost inflation, and the increasing stability of the supply chain environment.
General Mills may close plant acquired from Tyson Foods
In May, Manufacturing Dive reported that General Mills plans to shutter a production facility in Independence, Iowa, USA by the end of 2023. The plant produces Top Chews and Nudges treats. General Mills acquired those brands from Tyson Foods in 2021. The closure will affect 250 employees, and a General Mills spokesperson said the company would provide career services and benefits support for these individuals. The spokesperson said the closure would not affect pet food and treat plants in Joplin, Missouri and Richmond, Indiana.
In 2018, General Mills acquired Blue Buffalo for approximately US$8 billion, or US$40 per share in cash. During the first quarter of fiscal year 2022, General Mills acquired Tyson Foods’ pet treats business for US$1.2 billion in cash. The deal included the Nudges, Top Chews and True Chews brands. Net sales in Q4 FY22 included a benefit from the Tyson Foods’ pet treats acquisition.
General Mills pet segment’s annual revenue reached US$2.3 billion in 2022, according to Petfood Industry’s Top Companies Current Data.
