General Mills Q3 Organic Sales Drop 3% to $4.4B, Profit Falls 32%
General Mills reported Q3 organic sales down 3% to $4.4bn and adjusted operating profit fell 32% to $547m, with EPS sliding 37% to $0.64 as volumes dropped 11 percentage points. Shares fell 3% after the company maintained a full-year forecast predicting declines in all metrics except one.
1. Q3 Financial Results
General Mills reported third-quarter organic sales of $4.4bn, down 3%, and overall volumes fell 11 percentage points. Adjusted operating profit declined 32% to $547m and adjusted EPS dropped 37% to $0.64.
2. Share Reaction and Full-Year Forecast
Shares dropped 3% following the results, extending a 25% decline over six months and an 18% YTD loss. The company maintained its full-year forecast predicting decreases in organic sales, volumes, operating profit and EPS.
3. Management Outlook
CEO Jeff Harmening emphasized reinvestments in brand remarkability as the reason for near-term pressures, expecting improved market-share momentum to drive better top- and bottom-line results in Q4. He projected that fiscal 2027 will benefit from base price adjustments and enhanced cost efficiency to deliver organic sales growth.
4. Analyst View
Analysts noted bright spots in household penetration and distribution but questioned whether early improvements are sufficient to shift market sentiment. Optimism about future growth was tempered by ongoing declines across key financial metrics.