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General Mills’ pricing strategy hurts their Q3 sales. | CFO

General Mills’s pricing strategy was a double-edged sword in its third quarter, helping profits beat analysts’ estimates but contributing to a seventh straight quarterly sales decline.

As rivals have been slashing prices to compete for retailers’ shelves, General Mills has opted instead to limit discounting in a bid to boost margins. That translated into adjusted third quarter earnings of 72 cents per share, topping the average analyst estimate by one cent.

But the top line showed a 5.2% decline in net sales to $3.79 billion in the third quarter ended Feb. 26, reflecting weak demand for General Mills’ yogurt and baking products

Chief Executive Ken Powell said the results “finished in line with our expectations” but admitted the pricing strategy weighed down sales. “Our net sales declined due primarily to gaps in pricing and promotional activity in key U.S. businesses,” he said in a news release.

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General Mills’ pricing strategy hurts their Q3 sales..

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