General Mills, Inc. (NYSE: GIS), the company behind popular food brands like Cheerios and Pillsbury, is expected to report its fourth-quarter results on June 25, before the opening bell. The consumer staples giant’s sales performance has been lackluster this year, reflecting continued weakness in the North America Retail business that accounts for more than 60% of total revenues. Currently, the management is executing its strategy to revive sales, including investments in brand communication and innovation.
Q4 Report Due
The Minneapolis-based company is expected to report its fourth-quarter 2025 financial results on Wednesday, June 25, at 7:00 am ET. It is estimated that Q4 earnings, adjusted for special items, declined to $0.71 per share from $1.01 per share in the prior year period. The consensus sales estimate for the May quarter is $4.6 billion, which represents a 2.4% decrease from Q4 2024.
Shares of General Mills have been in a downward spiral for some time, hitting a 52-week low a month ago. The last closing price is down 36% from the stock’s all-time highs of May 2023. Over the past year, GIS underperformed the S&P 500 index quite often. After the recent dip, the stock appears fairly valued, with moderate growth potential contingent on strategic investments.
Weak Q3
In the third quarter, General Mills’ net sales decreased 5% year-over-year to $4.84 billion, with organic net sales dropping 5%. Net income, excluding one-off items, dropped 15% from last year to $1.00 per share in Q3, on a constant currency basis. Unadjusted net earnings were $626 million, down 7% — on a per-share basis, net income declined 4% to $1.12. Earnings beat estimates, while revenue fell short.
From General Mills’ Q3 2025 earnings call:
“We’re going to increase our marketing spend, and we have some really good new products coming in the first half of next year. In fact, part of the investment we’re making in the fourth quarter is the R&D, resources for the admin necessary to get those products to market as well as the supply chain. And so, what we’re looking at next year is to reinvest our HMM savings to reinvest in the 53rd week as well as these efficiencies to get back to growth.“
Outlook
For fiscal 2025, the management expects organic net sales to be down 2% to 1.5%. Adjusted earnings per share is expected to be down 8-7%, in constant currency. The company bets on its revival initiatives to return to the growth path in the fourth quarter, and then to sustain the momentum in the next fiscal year.
The average price of General Mills’ stock for the last 52 weeks is $63.48. The stock has lost about 18% in the past six months.
