General Mills, Inc. reported results for its fiscal 2025 third quarter.
“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,” said General Mills Chairman and Chief Executive Officer Jeff Harmening in a recent press release. “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, two businesses where we made incremental investments last quarter and saw positive returns.
“We’re focused on improving our sales growth in fiscal 2026 by stepping up our investment in innovation, brand communication, and value for consumers,” Harmening continued. “We’ll fund that investment with another year of industry-leading HMM productivity, coupled with expected new cost-savings initiatives designed to further boost our efficiency and enable growth.”
Guided by its purpose to make food the world loves, General Mills is executing its Accelerate strategy to drive sustainable, profitable growth and top-tier shareholder returns over the long term. The strategy focuses on four pillars to create competitive advantages and win: boldly building brands, relentlessly innovating, unleashing scale, and standing for good. The company is prioritizing its core markets, global platforms, and local gem brands that have the best prospects for profitable growth and is committed to reshaping its portfolio with strategic acquisitions and divestitures to further enhance its growth profile.
Third Quarter Results Summary
Net sales were down 5 percent to $4.8 billion, driven by lower pound volume and unfavorable foreign currency exchange. Organic net sales were also down 5 percent. Nielsen-measured retail sales were down 1 percent in the quarter across measured markets. The 4-point gap between organic net sales growth and retail sales growth primarily reflected headwinds from retailer inventory reductions and the expected reversal of certain second-quarter favorable timing items.
Gross margin was up 40 basis points to 33.9 percent of net sales, driven primarily by Holistic Margin Management (HMM) cost savings and favorable mark-to-market effects, partially offset by input cost inflation, unfavorable net price realization and mix, and supply chain deleverage. Adjusted gross margin was down 60 basis points to 33.4 percent of net sales, driven primarily by input cost inflation, unfavorable net price realization and mix, and supply chain deleverage, partially offset by HMM cost savings.
See the full report here.
