How General Mills’ Segments Performed in Q1 2019



North American Retail segment remains weak

General Mills’ (GIS) largest business segment—North American Retail—continues to disappoint with its weak sales performance. The segment’s net sales decreased 2% YoY (year-over-year) to $2.4 billion, reflecting lower volumes. Tough YoY comparables also remained a drag. The segment’s organic sales decreased 1% as lower volumes of -2% more than offset the 1% gain from higher pricing and mix.

In its North American Retail segment, the U.S. Snacks business reported a 4% decline YoY as benefits from innovation-based product launches for Lärabar and Epic bars were more than offset by lower sales of Fiber One snack bars. In Canada, the segment’s net sales fell 4%, and its U.S. Meals and Baking business was down 2% YoY due to the divestiture of Green Giant.

U.S. Yogurt sales continued to remain weak, decreasing 2% YoY. Its innovation-led new products Oui and YQ are gaining traction. However, lower sales of Greek and light yogurt more than offset the benefits. Sales of U.S. Cereal increased 1%.

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Convenience Stores & Foodservice segment

Net sales for General Mills’ Convenience Stores & Foodservice segment grew 4% to $0.5 billion, led by growth in snacks and frozen meals. The segment’s organic sales increased 4% YoY, reflecting 5% higher pricing, partially offset by lower volumes of -1%.

Pet segment

Net sales for its Pet segment increased 14% on a pro forma basis to $0.3 billion, reflecting higher volumes, increased pricing, and a favorable mix. The segment’s sales benefit from continued expansion in the food, drug, and mass channel, coupled with growth in the e-commerce channel. However, the pet specialty channel remained a drag.

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Europe and Australia segment

General Mills’ net sales for its Europe and Australia segment increased 2% to $0.5 billion, reflecting a higher net price realization and improved mix. Organic sales rose 1%.

Asia and Latin America segment

Net sales for its Asia and Latin America segment rose 2% to $0.4 billion, reflecting higher volumes and improved pricing and mix. However, adverse currency rates remained a drag. Organic sales rose 8%, driven by higher sales in China, India, and Brazil.


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