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Feb 23, 2025
General Mills Q3 2025 Earnings Report
General Mills reported its fiscal Q3 2025 results with lower net sales and EPS, impacted by retailer inventory reductions and softness in snacking categories.
Key Takeaways
General Mills posted a 5% decrease in net sales for Q3 2025, totaling $4.84 billion. Operating income fell 2% to $891 million, and net income was $625.6 million. Diluted EPS was down 4% to $1.12, while adjusted EPS dropped 15% to $1.00. The company highlighted headwinds from retailer inventory reductions and slower performance in key snacking categories.
Net sales decreased 5% to $4.84 billion, with a 5% decline in organic net sales.
Operating income dropped 2% to $891 million, and net income fell 7% to $625.6 million.
Diluted EPS was $1.12, down 4%; adjusted diluted EPS was $1.00, down 15%.
Gross margin increased by 40 basis points to 33.9% due to cost savings and mark-to-market benefits.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
General Mills now expects fiscal 2025 organic net sales to decline between 2% and 1.5%, with adjusted operating profit and adjusted diluted EPS expected to fall between 8% and 7%. Free cash flow conversion is projected to be at least 95% of adjusted after-tax earnings.
Positive Outlook
- Holistic Margin Management program expected to deliver $600 million in cost savings in fiscal 2026.
- Incremental cost-savings initiatives targeting at least $100 million in fiscal 2026.
- Planned increase in investment for product innovation and brand support.
- Focus on expanding market share in Pet, Foodservice, and International segments.
- Continued improvement seen in Pillsbury and Totino’s product categories.
Challenges Ahead
- Macroeconomic uncertainty continues to weigh on consumer behavior.
- Retailer inventory reductions impacting sales growth.
- Slower demand in U.S. away-from-home food channels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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