General Mills is continuing to enjoy increased sales from the pandemic, but the momentum is slowing, according to the company’s latest quarterly report.
Overall net sales in the second quarter increased 7% to $4.72 billion, reflecting elevated at-home food demand resulting from the COVID-19 pandemic. This beat analyst estimates of $4.65 billion.
The meals and baking division had a sales gain of 18% over the second quarter of last year, which is down from the 31% year-over-year gain of the first quarter. Cereal was up 4% in the U.S., and yogurt was up 3%. Pet food was up 18%, possibly reflecting a trend of increased animal adoptions during the pandemic.
“We executed very well again in the second quarter, driving strong performance on the top and bottom lines,” CEO Jeff Harmening said in a statement. “In this dynamic environment, I’m proud of the way we’re taking care of our people and serving our consumers with brands they love and trust.”
The company is planning to capitalize on the new popularity of ready-to-eat breakfast cereals by introducing 16 new SKUs this winter, including products with Sesame Street and Pokemon themes, Dunkaroos and new flavors of Cheerios.
