General Mills’ sales fell by a less-than-expected amount in the first quarter of the year as the global food giant looks to recover from a shopper exodus of its big household brands.
Total revenue dropped 7% to $4.52bn in the quarter to 24 August, marginally ahead of the $4.51bn estimated by analysts.
Most of the fall came due to the sale of its US yoghurt business to Lactalis earlier this year, which previously contributed about $1.2bn in annual sales.
Organic sales were down 3%, less than expected thanks to price hikes in its North America petfood business and an improved performance in international markets such as India, north Asia, and Europe.
“Our primary goal in fiscal 2026 is to restore organic sales growth by investing in greater value, innovation, and product news for consumers,” said chairman and CEO Jeff Harmening.
The US company, which manufactures Häagen-Dazs, Old El Paso, and Green Giant in the UK, is battling with rising economic uncertainty and softer demand in key markets, especially North America.
North American volumes fell 16% in the quarter as rising prices and a cooling labour market continued to drive shoppers to cheaper own-label alternatives.
The company is performing better elsewhere with net sales in its international business up 6% in the quarter, though this is largely due to price hikes. Volumes declined 2%.
Its North American petfood sales grew 6% thanks to the recent acquisition of Whitebridge Pet Brands’ North America business.
The company reaffirmed its annual targets of organic net sales ranging from down 1% to up 1% this year, with overall category growth now expected to fall below its long-term targets.
It still forecasts adjusted profit to decline by 10% to 15% for the full year.
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