General Mills reported a $2 billion loss last quarter, mainly due to non-cash items, while revenue rose 1% as budget-conscious shoppers opted for smaller packages and sale items. The only segment of its North American sales that grew was the pet business, which includes Blue Buffalo and Tiki Cat, rising 4% with the CEO noting cat growth is on fire. The company plans to achieve $3 billion in cost savings over the next four years and focus product innovation on protein and fiber after protein-packed Cheerios performed well. It cut prices on two-thirds of its products last year to appeal to value-seeking consumers, and the retail segment’s North American sales slide improved from a 10% decline to 4%. Investors pushed the stock up about 9% following the announcement.
General Mills IncPet business (Blue Buffalo, Tiki Cat) grew 4%, the only growing North American segment, and CEO noted cat growth is on fire.