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2025-09-17 20:28:16
General Mills Faces Challenges: Growth Under Pressure, How Will the Giant Respond? (1) General Mills maintained its annual sales and profit forecasts on Wednesday (Beijing Time), despite facing challenges from rising economic uncertainty and weak demand in key markets such as North America. Rising consumer prices and a cooling US labor market are squeezing household budgets, prompting consumers to turn to cheaper private label brands, putting widespread pressure on packaged food manufacturers. (2) The company reported a 16 percentage point year-over-year quarterly sales decline in North America, and expects growth across the category to fall short of its long-term target. General Mills reiterated its annual target of a 10% to 15% decline in adjusted profit and a 1% to 1% increase in organic net sales. (3) Despite the challenges, General Mills' sales decline was mitigated by sales growth in its North American pet food division and in international markets such as India and Europe. In the quarter ended August 24, net sales in international markets grew 6%, driven by a 6 percentage point increase in prices. North American pet food net sales increased 6%, driven in part by the recent acquisition of Whitebridge Pet Brands' North American business, compared to a 1% decline in sales in the same division in the same period last year. ⑷ In terms of financial data, first-quarter sales fell 6.8% to $4.52 billion, slightly better than analysts' expectations of a 6.9% decline to $4.51 billion. After adjustment, General Mills' earnings per share were 86 cents, higher than the expected 81 cents, thanks in part to price increases in its international and North American pet food divisions. However, General Mills' stock price fell about 2% in pre-market trading, and has fallen about 22% so far this year.
