Overview
- General Mills now guides organic net sales down 1.5% to 2% for the year, lowered from a prior range of down 1% to up 1%.
- The company projects adjusted operating profit and adjusted diluted EPS to decline 16% to 20% in constant currency, deeper than its previous 10% to 15% drop.
- Free cash flow conversion remains targeted at a minimum of 95% of adjusted after-tax earnings despite weaker profit expectations.
- Executives attributed the downgrade to weak consumer sentiment, market volatility, and higher costs tied to volume recovery, noting shifting purchase patterns.
- At the CAGNY presentation, management highlighted its Accelerate strategy and ‘Remarkability’ playbook, pointed to portfolio reshaping and digital upgrades, and noted consumer shifts toward value, protein-forward choices, and the influence of GLP-1 drugs.