Betty Crocker and Cookie Crisp maker General Mills has noted a sliding end to a relatively poor year, with fourth quarter operating profits down 35%, adding to a 4% dip in full-year operating profits.
Overall, net sales performed better than most analysts’ expectations at $19.5 billion – down 2% on last year. Operating profits hit $3.3 billion and adjusted operating profit reached $3.4 billion (-7%).
However, the business has invested significantly in operations during the second half of fiscal 2025, with a view to drive value among consumers, accounting for some of the profit erosion.
“Our Q4 financial results reflected these incremental investments and finished in line with our updated expectations,” said General Mills Chairman and CEO Jeff Harmening.
General Mills’ focus going into the next fiscal year is to restore overall organic sales growth, which will require further investment in “consumer value, product news, innovation and brand building,” added Harmening.
A raft of innovation and advertising will help to yield stronger results in the 12 months ahead, with the former ramping up by double digits.
A chunk of the business’s growth strategy is pinned on a launch into fresh pet food, which will occur later in 2025.
General Mills key Q4 financial highlights
- -3% – net sales were down to $4.6bn
- $504m – operating profit slumped 35%
- $294m – net earnings were down 47%
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Third Bridge senior analyst John Oh highlighted a strong performance in some territories, such as organic volumes in North America, but warned General Mills needs to dial up its pricing and promotions aggression.
“In categories such as snacking and cereals, our experts mention that while the company has iconic brands with great brand heritage, they also caution that the portfolio is under indexed in high