Business Segment And Geographic Information |
(16) Business Segment and Geographic Information We operate in the packaged foods industry. Our operating segments are as follows: North America Retail, International, North America Pet, and North America Foodservice. In the first quarter of fiscal 2025, we renamed the Pet segment to the North America Pet segment to reflect that pet food results outside North America are recorded in the International segment. There were no changes to the composition of our reportable segments or information reviewed by our chief operating decision maker and no impact on our historical segment operating results. Our North America Retail operating segment reflects business with a wide variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, convenience stores, and e-commerce grocery providers. Our product categories in this business segment include ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, snack bars, fruit snacks, savory snacks, and a wide variety of organic products including ready-to-eat cereal, frozen and shelf-stable vegetables, meal kits, fruit snacks, and snack bars. Our International operating segment consists of retail and foodservice businesses outside of the United States and Canada. Our product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes, shelf-stable vegetables, and pet food products. We also sell super-premium ice cream and frozen desserts directly to consumers through owned retail shops. Our International segment also includes products manufactured in the United States for export, mainly to Caribbean and Latin American markets, as well as products we manufacture for sale to our international joint ventures. Revenues from export activities are reported in the region or country where the end customer is located. Our North America Pet operating segment includes pet food products sold primarily in the United States and Canada in national pet superstore chains, e-commerce retailers, grocery stores, regional pet store chains, mass merchandisers, and veterinary clinics and hospitals. Our product categories include dog and cat food (dry foods, wet foods, and treats) made with whole meats, fruits, vegetables, and other high-quality natural ingredients. Our tailored pet product offerings address specific dietary, lifestyle, and life- stage needs and span different product types, diet types, breed sizes for dogs, life-stages, flavors, product functions, and textures and cuts for wet foods. Our North America Foodservice segment consists of foodservice businesses in the United States and Canada. Our major product categories in our North America Foodservice operating segment are ready-to-eat cereals, snacks, refrigerated yogurt, frozen meals, unbaked and fully baked frozen dough products, baking mixes, and bakery flour. Many products we sell are branded to the consumer and nearly all are branded to our customers. We sell to distributors and operators in many customer channels including foodservice, vending, and supermarket bakeries. Operating profit for these segments excludes unallocated corporate items, gain or loss on divestitures, and restructuring, impairment, and other exit costs. Results from certain businesses managed by our Gold Medal Ventures entity are included within corporate and other net sales and unallocated corporate items within operating profit. Unallocated corporate items also include corporate overhead expenses, variances to planned North American employee benefits and incentives, certain charitable contributions, restructuring initiative project-related costs, gains and losses on corporate investments, and other items that are not part of our measurement of segment operating performance. These include gains and losses arising from the revaluation of certain grain inventories and gains and losses from mark-to-market valuation of certain commodity positions until passed back to our operating segments. These items affecting operating profit are centrally managed at the corporate level and are excluded from the measure of segment profitability reviewed by executive management. Under our supply chain organization, our manufacturing, warehouse, and distribution activities are substantially integrated across our operations in order to maximize efficiency and productivity. As a result, fixed assets and depreciation and amortization expenses are neither maintained nor available by operating segment. Our operating segment results were as follows: Quarter Ended Six-Month Period Ended In Millions Nov. 24, 2024 Nov. 26, 2023 Nov. 24, 2024 Nov. 26, 2023 Net sales: North America Retail $ 3,321.5 $ 3,305.0 $ 6,338.1 $ 6,378.0 International 690.6 683.1 1,407.6 1,398.9 North America Pet 595.8 569.3 1,171.9 1,149.2 North America Foodservice 630.0 582.0 1,166.2 1,118.0 $ 5,237.9 $ 5,139.4 $ 10,083.8 $ 10,044.1 Corporate and other 2.2 - 4.4 - Total net sales $ 5,240.1 $ 5,139.4 $ 10,088.2 $ 10,044.1 Operating profit: North America Retail $ 862.3 $ 859.9 $ 1,608.0 $ 1,658.1 International 23.8 34.6 44.7 84.6 North America Pet 139.3 102.5 258.7 213.7 North America Foodservice 118.5 95.5 190.0 154.6 Total segment operating profit $ 1,143.9 $ 1,092.5 $ 2,101.4 $ 2,111.0 Unallocated corporate items 64.8 157.1 188.6 244.4 Restructuring, impairment, and other exit costs 1.2 123.6 3.4 124.8 Operating profit $ 1,077.9 $ 811.8 $ 1,909.4 $ 1,741.8 Net sales for our North America Retail operating units were as follows: Quarter Ended Six-Month Period Ended In Millions Nov. 24, 2024 Nov. 26, 2023 Nov. 24, 2024 Nov. 26, 2023 U.S. Meals & Baking Solutions $ 1,327.9 $ 1,343.3 $ 2,274.2 $ 2,285.2 U.S. Morning Foods 892.9 856.9 1,795.8 1,784.7 U.S. Snacks 843.1 836.3 1,753.6 1,790.8 Canada 257.6 268.5 514.5 517.3 Total $ 3,321.5 $ 3,305.0 $ 6,338.1 $ 6,378.0 Net sales by class of similar products were as follows: Quarter Ended Six-Month Period Ended In Millions Nov. 24, 2024 Nov. 26, 2023 Nov. 24, 2024 Nov. 26, 2023 Snacks $ 1,055.0 $ 1,037.3 $ 2,161.8 $ 2,174.0 Cereal 829.5 776.9 1,622.6 1,594.8 Convenient meals 795.1 785.1 1,474.0 1,450.6 Dough 722.6 775.1 1,240.4 1,310.0 Pet 623.8 572.3 1,228.4 1,152.2 Baking mixes and ingredients 577.2 562.3 1,034.3 1,028.8 Yogurt 377.8 364.9 749.7 733.3 Super-premium ice cream 163.6 168.3 376.5 392.3 Other 95.5 97.2 200.5 208.1 Total $ 5,240.1 $ 5,139.4 $ 10,088.2 $ 10,044.1
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