General Mills sees Q1 Pet segment organic net sales ‘to be roughly flat’ YoY

“As in human food, retail sales trends in the U.S. pet food category have been moderating recently, driven in part by less impact from pricing. With U.S. pet parents increasingly cautious about their economic outlook, some have been shifting toward more value-oriented products and channels as well as smaller pack sizes. In addition, pet parents spending more time away from home has negatively impacted the treats and wet food segments of the category. As a result of these more challenging category dynamics, the company now expects first-quarter fiscal 2024 Pet segment organic net sales to be roughly flat versus last year and segment operating profit margin to be approximately 19 percent. While Pet segment volume trends are expected to remain challenged in the months ahead amid a more difficult short-term U.S. pet food category dynamic, the company continues to see strong long-term growth opportunities for Blue Buffalo as the multi-decade trend toward humanization continues.,” said the company in the release.