North America Retail Segment
Second-quarter net sales for General Mills North America Retail segment were down 2 percent to $3.3 billion, driven by lower pound volume, partially
offset by favorable net price realization and mix. Organic net sales were 2 percent below year-ago results that grew double digits; organic net sales were up 5 percent on a 2-year compound growth basis. Net sales performance outpaced Nielsen-measured retail sales growth in the quarter due to faster growth in non-measured channels. Net sales were
down mid-single digits for the U.S. Snacks and U.S. Morning Foods operating units. Net sales were up low-single digits for U.S. Meals & Baking Solutions and
were up high-single digits for Canada. Segment operating profit of $860 million was up 3 percent as reported and in constant currency, driven primarily by favorable net price realization and mix and HMM cost savings, partially offset by
lower volume, input cost inflation, higher other supply chain costs, supply chain deleverage, and higher SG&A expenses.
Through six months,
North America Retail segment net sales of $6.4 billion essentially matched year-ago levels, including a 1-point headwind from divestitures. Organic net sales were
up 1 percent. Segment operating profit of $1.7 billion was up 3 percent as reported and in constant currency, driven primarily by favorable net price realization and mix and HMM cost savings, partially offset by input cost inflation,
lower volume, higher other supply chain costs, higher SG&A expenses, and supply chain deleverage.
Pet Segment
Second-quarter net sales for the Pet segment were down 4 percent to $569 million, driven by lower pound volume, partially offset by favorable net price
realization and mix. Organic net sales were also down 4 percent. Net sales performance lagged all-channel retail sales results by roughly 2 points, despite the comparison to the year-ago quarter that included a significant retailer inventory reduction. Relative to fiscal 2022, second-quarter net sales were down mid-single digits and all-channel retail sales were up mid-single digits. Net sales in the quarter were down mid-single digits for dry pet food, down double
digits for wet pet food, and up double digits for pet treats compared to the prior year. Segment operating profit of $102 million was up 18 percent, driven primarily by favorable net price realization and mix and HMM cost savings,
partially offset by lower volume, higher other supply chain costs, and higher SG&A expenses.
Through six months, Pet segment net sales were
down 2 percent to $1.1 billion. Organic net sales were also down 2 percent. Segment operating profit was up 2 percent to $214 million, driven primarily by favorable net price realization and mix and HMM cost savings,
partially offset by higher other supply chain costs, lower volume, input cost inflation, higher SG&A expenses, and supply chain deleverage.
North America
Foodservice Segment
Second-quarter net sales for the North America Foodservice segment essentially matched year-ago
levels at $582 million. Organic net sales were in line with last year despite a 2-point headwind from market index pricing on bakery flour. Segment operating profit increased 17 percent to
$96 million, driven primarily by HMM cost savings and favorable net price realization and mix, partially offset by higher other supply chain costs.
Through six months, North America Foodservice net sales increased 4 percent to $1.1 billion, including a
2-point benefit from the TNT Crust acquisition. Organic net sales were up 2 percent. Segment operating profit was up 14 percent to $155 million, driven by favorable net price realization and mix
and HMM cost savings, partially offset by higher other supply chain costs and higher SG&A expenses.
International Segment
Second-quarter net sales for the International segment increased 2 percent to $683 million, driven by favorable net price realization and mix and a 2-point benefit from foreign currency exchange, partially offset by lower pound volume. Organic net sales essentially matched year-ago levels, with a decline in Brazil offset
by growth in distributor markets and Europe & Australia. Segment operating profit of $35 million was up 94 percent as reported and up 100 percent in constant currency from year-ago
results that included the impact of the ice cream recall, driven by favorable net price realization and mix and HMM cost savings, partially offset by input cost inflation.