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General Mills Inc. (NYSE: GIS), the manufacturer of Cheerios, posted better-than-expected first-quarter revenues on Wednesday, as strong growth in its pet food division offset a drop in demand for its cooking sauces and baking items.
Pet food sales, including as General Mills’ luxury brand Blue Buffalo, have risen in the last year as stranded consumers acquired cats and dogs to help cope with the pandemic’s stress. Net sales in General Mills’ pet food division jumped 25% to $488 million in the third quarter, according to reported figures.
According to Refinitiv statistics, total net sales increased to $4.54 billion in the quarter ended Aug. 29, up from $4.36 billion a year ago, topping analysts’ expectations of $4.29 billion.