General Mills, Inc. has announced its financial results for the fourth quarter and the fiscal year ending May 25, 2025. The company experienced a dip in sales and profits but remains focused on future growth.
Chairman and CEO Jeff Harmening stated, “The investments we made in the second half of fiscal 2025 to bring consumers more value worked as we expected, driving improved volume and pound share trends in the fourth quarter.” The company’s Q4 results met updated expectations, reflecting these strategic investments.
Harmening emphasised that the primary objective for fiscal 2026 is to restore growth in organic sales driven by volume. “To do that, we’ll invest further in consumer value, product news, innovation, and brand building,” he said. Highlighted plans include the national launch of Blue Buffalo’s fresh pet food, arriving later in 2025.
General Mills is committed to its Accelerate strategy, which aims to achieve sustainable, profitable growth and better returns for shareholders. This strategy emphasises four key areas: strengthening brands, continuous innovation, leveraging scale, and commitment to good practices. The company aims to focus on its core markets and brands that promise profitable growth, also planning strategic acquisitions and divestitures.
Fourth Quarter Financial Highlights
Net sales for Q4 declined by 3% to $4.6 billion, primarily due to lower pound volume and unfavourable pricing. Organic net sales also fell 3%, with unfavourable trade expenses impacting results. Gross margin dropped 340 basis points to 32.4% of net sales due to higher input costs and unfavourable pricing.
Operating profit decreased to $504 million, a 35% decline, with adjusted operating profit falling to $622 million, a 22% decrease in constant currency. The quarterly net earnings attributable to General Mills were $294 million, a 47% decrease, and diluted EPS dropped to $0.53.
Full Year Performance Summary
For the entire fiscal year, General Mills reported net sales of $19.5 billion, a 2% decrease driven by lower pound volume and pricing pressures. The gross margin declined slightly to 34.6%, with operating profit at $3.3 billion, a 4% decrease.
Net earnings attributable to the company for the year were $2.3 billion, an 8%drop, while diluted EPS fell to $4.10, down 5%. The challenges faced in fiscal 2025 underscore the need for a strategic focus as the company enters the new fiscal year.
