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General Mills, Inc. (NYSE: GIS) has released its financial results for the fourth quarter and full fiscal year 2025, alongside its outlook for fiscal 2026. The company faced challenges this quarter, with key metrics falling short of previous years, yet aligning with updated expectations. Looking forward, General Mills aims to restore growth through strategic investments and innovations.
 

General Mills Reports Fourth-Quarter and Full-Year 2025 Results

In the fourth quarter of fiscal 2025, General Mills reported net sales of $4.6 billion, marking a 3% decrease compared to the previous year. This decline was in line with expectations, which had anticipated a slight downturn due to unfavorable trade expense timing and other factors.

The company’s operating profit saw a significant drop of 35% to $504 million, primarily driven by lower gross profit and increased selling, general, and administrative (SG&A) expenses. Adjusted operating profit also fell by 22% in constant currency, reaching $622 million.

Diluted earnings per share (EPS) were reported at $0.53, a 46% decrease, while adjusted diluted EPS was $0.74, down 27% in constant currency. These results reflect the challenges General Mills faced in managing costs and maintaining sales volumes amid a competitive market environment.

Comparing these figures against expectations, the company’s performance was relatively aligned with the anticipated EPS of $0.71 and revenue of $4.6 billion. Although the actual EPS was slightly lower, the revenue met the forecast. The company’s strategic investments in consumer value and product innovation during the latter half of fiscal 2025 did contribute to improved volume and share trends, as noted by CEO Jeff Harmening. Despite the hurdles, these efforts positioned General Mills to finish the quarter in accordance with its revised expectations.

The North America Retail segment experienced a 10% decline in sales, while the North America Pet segment saw a 12% increase, driven by acquisitions and organic growth. The International segment reported an 11% increase in net sales, bolstered by acquisitions and strong growth in certain markets. These mixed results across segments highlight the varied challenges and opportunities faced by General Mills in different markets and categories.
 

General Mills Seeks to Restore Volume-Driven Organic Sales Growth

Looking ahead to fiscal 2026, General Mills is prioritizing the restoration of volume-driven organic sales growth. The company plans to increase investments in consumer value, product innovation, and brand building, guided by its strategic framework.

A key initiative includes the national launch of Blue Buffalo into the fresh pet food category, expected later in calendar 2025. This move is part of General Mills’ broader strategy to strengthen its market position and drive growth across its core markets and global platforms.

General Mills has set financial targets for fiscal 2026, anticipating organic net sales to range between a 1% decrease and a 1% increase. Adjusted operating profit and adjusted diluted EPS are both expected to decline by 10% to 15% in constant currency.

The company also aims for a free cash flow conversion of at least 95% of adjusted after-tax earnings. These projections account for the competitive landscape and the expected impact of divestitures, acquisitions, and foreign currency fluctuations.

To support these goals, General Mills is implementing a global transformation initiative designed to streamline business processes and enhance operational efficiency. This initiative is expected to generate $100 million in incremental cost savings in fiscal 2026.

Despite the anticipated challenges, the company is confident that these strategic investments and operational improvements will position it for long-term growth and shareholder returns. By focusing on innovation and efficiency, General Mills aims to navigate the evolving market landscape and deliver sustainable, profitable growth.

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