Source: Sharecast
The American owner of Pillsbury, Haagen-Dazs and Betty Crocker, among others, saw third-quarter net sales fall 5% to $4.8bn. Organic sales also slid 5%.
Operating profits softened 2% at $891m, while adjusted diluted earnings per share lost 15% at $1.00.
The firm said the results were below expectations, driven largely by greater-than-anticipated retailer inventory headwinds – especially in the North America retail and North America pet units – and a slowdown in snacking categories.
General Mills added that the macroeconomic uncertainty would likely continue to impact consumers in the fourth quarter, and as a result, now expects full-year organic net sales to be down year-on-year.
Having previously forecast growth in the range of flat to 1%, the Minneapolis-based business now expects sales to fall between 2% and 1.5%.
The adjusted diluted EPS forecast was also cut to between 8% and 7% lower year-on-year, a sharper decline that the 4% to 2% range initially predicted.
As at 1245 GMT, the stock had lost 4% in pre-market trading.
Jeff Harmening, chief executive, said: “We’re focused on improving our sales growth in fiscal 2026 by stepping up investment in innovation, brand communication and value for consumers.
“We’re fund that investment with another year of industry-leading HMM (holistic margin management) activity, coupled with expected cost-savings initiatives designed to further boost our efficiency and enable growth.”