General Mills CEO Jeff Harmening said the company's retail market share fell in North America during the quarter, compared with a year ago when it had 'superior on-shelf availability.'
have helped expand top-line and margins, volumes have taken a hit as customers have been less willing to spend on expensive food items and shifted to cheaper private label alternatives.General Mills' gross margin rose 540 basis points to 36.1% in the first quarter. Its organic average selling prices rose 7 points, while organic volumes were down 2 points.
Organic sales at North America retail segment grew 4% as it saw a "modest" rebuild of retailer inventory in the quarter after being hit by weaker demand in the previous quarter.share fell in North America during the quarter, compared with a year earlier when it had "superior on-shelf availability". General Mills Inc. Chex brand cereal arranged in New York, US, on Tuesday, Sept. 12, 2023. General Mills Inc. is scheduled to release earnings figures on September 20. Photographer: Gabby Jones/Bloomberg via Getty Images
"Competitors are now starting to rebuild inventory and improve their in-stock levels, which has been a challenge for General Mills," CFRA Research's Arun Sundaram said. The company's pet food segment posted flat organic sales as customers shifted towards more value-oriented products and smaller pack sizes.
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