General Mills Reports Fiscal 2025 Third-quarter Results

General Mills, a leading global food company, has released its fiscal 2025 third-quarter results, providing insights into its financial performance, strategic initiatives, and future outlook. The report highlights key financial metrics, business performance indicators, and management's perspective on the company's current position and future plans. Financial Highlights General Mills reported third-quarter net sales of $4.8 billion, a decrease of 5 percent compared to the same period last year. The decline was attributed to lower pound volume and unfavorable foreign currency exchange. Operating profit for the quarter was $891 million, down 2 percent, while adjusted operating profit in constant currency was $801 million, down 13 percent. Diluted earnings per share (EPS) were $1.12, a decrease of 4 percent, and adjusted diluted EPS in constant currency was $1.00, down 15 percent. Business and Operational Highlights General Mills experienced a 5 percent decline in organic net sales, driven by retailer inventory reductions and a slowdown in snacking categories. However, the company saw positive market share trends in its Pet, Foodservice, and International segments, as well as improvements in Pillsbury refrigerated dough and Totino’s hot snacks. Gross margin increased by 40 basis points to 33.9 percent of net sales, primarily due to Holistic Margin Management (HMM) cost savings and favorable mark-to-market effects. Strategic Initiatives and Corporate Developments General Mills updated its full-year fiscal 2025 outlook, now expecting organic net sales to be down 2 percent to 1.5 percent. Adjusted operating profit and adjusted diluted EPS are projected to be down 8 percent to 7 percent in constant currency. The company also announced plans to invest in innovation, brand communication, and consumer value in fiscal 2026, funded by industry-leading HMM productivity and new cost-savings initiatives targeting at least $100 million in savings. Management's Perspective Jeff Harmening, Chairman and CEO of General Mills, commented on the results, stating, "Our third-quarter organic net sales finished below our expectations, driven largely by greater-than-expected retailer inventory headwinds and a slowdown in snacking categories. At the same time, we drove continued positive market share trends in Pet, Foodservice, and International as well as improvement in Pillsbury refrigerated dough and Totino’s hot snacks."Harmening emphasized the company's focus on improving sales growth in fiscal 2026 through increased investment in innovation, brand communication, and consumer value, funded by HMM productivity and new cost-savings initiatives. Future Outlook General Mills expects macroeconomic uncertainty to continue impacting consumers in the fourth quarter. The company plans to invest in consumer value, media support, and in-store visibility, as well as make investments in advance of significant fiscal 2026 new product launches. The company aims to deliver at least 5 percent savings in the cost of goods sold in fiscal 2026 through its HMM productivity program, representing approximately $600 million in gross productivity savings.SEC Filing: GENERAL MILLS INC [ GIS ] - 8-K - Mar. 19, 2025