The American food producer General Mills, which also serves the pet food market with its Blue Buffalo brand, has reported results for the second quarter of fiscal 2023 and raised its outlook for the year as a whole.
According to the company report, net sales increased by four per cent compared with the previous year to 5.2 bn US dollars. Organic net sales rose by eleven per cent. Net sales included a headwind of 5 percentage points from divestments and acquisitions and 1 percentage point from unfavourable exchange rates, the company emphasised. The operating profit of 800 mio US dollars was essentially on a par with the previous year, while adjusted operating profit increased by 7 per cent after adjustment for exchange rate effects.
Second-quarter net sales for the Pet segment essentially matched year-ago levels at 593 mio dollars. Net sales performance was negatively impacted by a reduction in retailer inventory, with all-channel retail sales up high single digits in the quarter. Pet net sales performance is expected to accelerate in the second half of fiscal 2023 due to increased capacity, improved customer service, increased brand-building investment, and an expectation for stable retailer inventory levels. Segment operating profit totaled 87 mio dollars compared to 132 mio dollars a year ago. Through six months, Pet segment net sales increased 8 per cent to 1.2 bn dollars.
“We have continued to work well and achieved strong sales and profit growth in the second quarter,” said Jeff Harmening, chairman and chief executive officer of General Mills. With most recent turnover of 15.6 bn US dollars, the company is one of the 500 best-performing corporations in the USA and the world’s sixth-biggest food manufacturer.