General Mills has revised its adjusted operating profit forecast for fiscal year 2025 amid an “uncertain macro-economic backdrop for consumers” across key markets. 

The US-based Cheerios cereal and Old El Paso Mexican food range maker now anticipates a decrease in adjusted operating profit ranging from 2% to 4% in constant currency, compared with the previous forecast of a 2% decline to flat. 

The company's adjusted diluted EPS is projected to decline between 3% and 1% in constant currency, a shift from the earlier forecast of a 1% decrease to a 1% increase.  

General Mills said it is implementing cuts while increasing “targeted promotional investment” in key “priority categories” to provide “greater value for consumers”, alongside boosting brand-building efforts beyond fiscal 2024 levels. 

General Mills chairman and CEO Jeff Harmening said: “While these investments lower our profit outlook for fiscal 2025, they better position General Mills for sustainable growth in fiscal 2026 and beyond.” 

In the second quarter, General Mills reported a 2% increase in net sales, reaching $5.2bn.  

This growth was driven by higher pound volume, although it was partially offset by unfavourable net price realisation and mix.  

The company's operating profit surged 33% to $1.1bn, primarily due to higher gross profit dollars and a previous goodwill impairment charge. 

Net earnings attributable to General Mills increased by 34% to $796m, with diluted EPS rising 39% to $1.42.  

During the three months under review, the company’s North America pet segment returned to growth, reporting a 5% increase in net sales to $596m. 

General Mills also said yesterday it had finalised the $1.45bn acquisition of Whitebridge Pet Brands’ North American premium cat food and pet treats business from NXMH.  

This portfolio, which features Tiki Pets and Cloud Star brands, is a “growth leader” in the cat food and pet treat markets, the company said.  

For the first half of the fiscal year, General Mills reported net sales of $10.1bn, operating profit of $1bn, and net earnings attributable to the company of $1.4bn.