General Mills Q3 2025 Earnings Report
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.
General Mills
General Mills
General Mills Revenue by Segment
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.
- Softness in key U.S. snacking categories.
- Expected declines in organic net sales and adjusted EPS for the full year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income