Low yogurt sales hurt North America Retail segment
Sales in General Mills’ (GIS) North America retail segment, its largest business division, remained flat at $2.4 billion in the fiscal fourth quarter as benefits from increased sales in the US snacks and cereal segment were offset by a continued decline in yogurt and meals and baking products. Organic sales decreased 1% as lower volumes offset improved pricing and mix. Meanwhile, net sales in Canada fell 5% on a currency-neutral basis.
The US snacks category saw a 2.0% increase in sales, reflecting the improved performance in Nature Valley, Lärabar, and fruit snacks. The US cereal sales also grew 2.0% driven by Reese’s Puffs, Lucky Charms, and seasonal varieties of Cheerios. Net sales in the US Meals & Baking segment fell 2.0% as growth in Annie’s Mac and Cheese, Betty Crocker desserts, and Totino’s hot snacks were more than offset by declines in Helpers and specialty potatoes.
Yogurt sales in the US continue to disappoint and fell 5% in the fiscal fourth quarter. However, the rate of decline moderated sequentially thanks to innovation-led products like Oui by Yoplait and Yoplait Mix-ins.
Frozen products drive Convenience Stores & Foodservice segment
Sales in the Convenience Stores & Foodservice segment improved 5.0% to $0.5 billion led by higher sales of frozen meals and snacks. Frozen foods are one of the few bright spots in the food sector and are seeing strong demand. The top line for peer Conagra Brands (CAG) is also benefitting from continued strength in its frozen food segment.
How sales fared in Europe & Australia
General Mills’ net sales in Europe & Australia jumped 14% to $0.6 billion, primarily driven by favorable currency rates and higher net price realization. However, lower volumes in yogurt sales remained a drag. Organic sales increased 4% driven by pricing and mix.
Asia & Latin America
Net sales in the Asia & Latin America segment fell 1.0% to $0.4 billion, reflecting the negative impact from the calendar shift in Brazil. The segment’s organic sales remained flat in the fiscal fourth quarter. However, sales increased at a double-digit rate excluding the impact of the difference in the reporting period.