MINNEAPOLIS — Pet segment net sales were up 25% to $488 million in General Mills’ first quarter of fiscal 2022, of which five percentage points were contributed by the company’s acquisition of Tyson Foods’ pet treat business in July. Volume growth and favorable price realization and mix drove net sales growth, the company reported.
Double-digit sales growth for dog and cat foods drove a 20% increase in organic net sales over the quarter, compared to the first quarter of the company’s fiscal 2021. Segment operating profit for the pet segment grew 28% to $115 million over the first quarter, which was partially offset by increased SG&A expenses.
Strong retail sales numbers and market share gains for Blue Buffalo were key components of this growth, and retail sales for the Tyson pet treat brands grew 20% “in measured channels,” according to General Mills.
The acquisition of Tyson’s pet treat business included Nudges, True Chews and Top Chews brands, which are expected to complement the company’s existing dog treat portfolio under Blue Buffalo.
“With our expanded portfolio, we are now the leading natural player in the dog treats segment, and we’ve strengthened our position as the number one overall natural pet food brand in the category,” said Jeff Harmening, chairman and chief executive officer of General Mills. “Our pet segment now generates $2 billion in net sales, with attractive margins and significant growth ahead.”
Bethany Quam, group president of General Mills’ pet segment, shared more details about the company’s up-and-coming pet segment during the virtual Barclays Global Consumer Staples Conference on Sept. 8.
Overall, the company reported $4.5 billion in sales, up 4% from year-ago. Operating profit was down 1% to $844 million, and organic net sales were up 2%.
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