Mixed results
Business performance
General Mills saw sales decline or remain flat across most of its segments during the third quarter, with the exception of North America Foodservice, which rose 1%. The highest decline of 7% was in the North America Retail segment, where gains in Pillsbury refrigerated dough and Totino’s hot snacks were offset by a slowdown in key US snacking categories. Sales declined across US Morning Foods, US Snacks, and US Meals & Baking Solutions.
Net sales in the Pet segment remained flat, with mid-single-digit increases in wet pet food and pet treats, and a mid-single-digit decline in dry pet food. The Foodservice segment saw a slowdown in away-from-home sales but benefited from gains in K-12 schools, healthcare, and college and university channels. Sales in the International segment fell 4%, with declines in China and Brazil, partly offset by growth in Europe & Australia.
Lowered outlook
General Mills expects its sales trends in Q4 2025 to look similar to Q3, excluding the impact of retailer inventory and other timing factors. The company expects macroeconomic uncertainty to persist in the fourth quarter. It also plans to make certain commercial investments in Q4.
Based on these assumptions, GIS lowered its guidance for fiscal year 2025. The company now expects organic sales to be down 1.5-2.0% compared to the previous expectation of flat to up 1%. Adjusted EPS is now expected to be down 7-8% in constant currency.