MINNEAPOLIS — Strong cat food sales helped General Mills hold pet revenue steady in the first quarter of fiscal year 2027 for the period ended Aug. 30, offsetting declines in dog food and highlighting a continued shift toward premium, differentiated nutrition offerings. Growth from brands such as Tiki Cat, Blue Tastefuls and Love Made Fresh helped support results, even as profits came under pressure from higher costs and lower volume.

Pet business

First quarter net sales for General Mills’ North America Pet business were reported at $612.8 million, nearly stagnant from the prior year period of $610 million. Pet net sales represented 13.9% of General Mills’ total net sales for the quarter.

Net sales for cat food rose double digits, pet treats rose low-single digits, and dog food dropped high-single digits. Organic net sales remained flat, driven by growth in cat food and pet treats and offset by a decline in dog food. Volume overall dropped six points and price and mix rose seven points.

Segment operating profit was $99.5 million, a 12% decrease from $112.9 million, which the company attributed to higher input costs, lower volume and higher Selling, General and Administrative (SG&A) expenses, partially offset by favorable net price realization and mix. Operating profit represented 16.2% of net sales, a decrease of 230 basis points from 18.5% in the prior year period. 

Despite a drop in its pet performance, the company shared that its remarkability strategy is gaining traction. For example, the quarter marked the company’s 8th consecutive quarter in which it delivered at lead mid-single-digit retail sales growth in cat food, lead by premium and differentiated products. 

“Tiki Cat continues to be a growth engine, delivering double-digit retail sales growth in Q1 and gaining share,” said Dana McNabb, chief operating officer of General Mills, during the company’s earnings call on Sept. 23. “Tiki’s positioning around minimally processed whole food and visible real ingredients gives us a differentiated platform to recruit new pet parents, and we’re increasing consumer support and expanding distribution selectively in fiscal 2027 while preserving the brand’s strong premium position.”

Additionally retail sales for its Blue Tastefuls line rose mid-single-digits over the quarter, led by household acquisition in both wet and dry cat food, expanded distribution and increased innovation. The company plans to introduce a product renovation for Tastefuls in the second half of the year. 

The company’s Love Made Fresh line, which debuted in retail in October 2025, experienced retail sales growth of 30%, driven by strong results for its stand-up resealable pouch packaging and improved shelf availability. 

“Our focus this year remains on driving awareness and trial and further accelerating turns for Love Made Fresh, supported by sharper communications highlighting our natural and superior nutrition positioning,” McNabb added.

Looking at its BLUE Wilderness portfolio, retail sales decreased similarly to the decrease seen in fiscal year 2026. According to McNabb, the line represents the “most challenged part” of its dry dog food portfolio. 

“We’re assessing all aspects of our offering, including the product, packaging, positioning, and value,” she added. “With a more comprehensive set of changes required, we expect our efforts to stabilize Wilderness will take time. In the meantime, we will continue to lean into the attractive growth opportunities in our pet portfolio across cat feeding, treating, Life Protection Formula and Love Made Fresh.”

According to General Mills, changes in retailer inventory were a “modest” headwind in the quarter, and the company continues to expect retailer inventory to be a headwind for full-year organic net sales. 

Overall business

Net sales for the first quarter were reported at $4.39 billion, a 3% decrease from $4.52 billion in the prior year period. 

Gross margin was stagnant, representing 33.9% of net sales, which the company attributed to higher input costs, offset by favorable net price realization and mix. Adjusted gross margin decreased 90 basis points, representing 33.3% of net sales compared to 34.2% of net sales in the prior year period. 

Operating profit was reported at $633.6 million, a significant 63% decrease from $1.73 billion in the prior year. General Mills attributed this drop to the $1 billion gain on its yogurt divestiture and lower gross profit dollars in fiscal year 2027. Adjusted operating profit was also $634 million, an 11% decrease, driven by higher input costs and lower volume and partially offset by favorable net price realization and mix. 

Operating profit margin was 14.4% of net sales, a decrease of 2,380 basis points. Adjusted operating profit margin was 14.4%, a decrease of 130 basis points from 15.7% of net sales. 

Net earnings were reported at $397 million, a significant 67% decrease from $1.20 billion in the prior year period.

In addition to its performance for the first quarter, General Mills shared its outlook for the fiscal year, prioritizing profitable organic net sales growth over the long term. For fiscal year 2027, organic net sales are expected to drop between 1.5% to up 0.5%. Adjusted operating profit is expected to  decrease between 8% and 13%. 

The company will focus on product innovation and renovations centered on top consumer benefits, like pet humanization.

“We are off to an encouraging start in fiscal 2027, driving improved topline performance with stronger product innovation and renovation focused on the benefits consumers are looking for today,” said Jeff Harmening, chairman and chief executive officer of General Mills. “We are also executing with discipline in a volatile environment, including delivering industry-leading cost savings through our Holistic Margin Management program and our global Transformation initiative. Based on our progress and the actions underway, we remain confident in our ability to deliver our fiscal 2027 guidance.”

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