By Connor Hart

General Mills' push to lower prices hurt its top line during the recent quarter, as sales fell nearly 7% from last year.

Still, the maker of Cheerios cereal and Pillsbury doughs said Wednesday that its turnaround is starting to bear fruit, as inflation-weary shoppers responded positively to new products and increased advertising.

The stock slid 3.4% to $47.88 in premarket trading. Through Tuesday's close, shares have lost about a third of their value in the past year.

Consumers are still behaving cautiously due to economic uncertainty, global conflicts and changing food-policy regulations, Chief Executive Jeff Harmening said. General Mills will lower prices across roughly two-thirds of its portfolio this year to better appeal to these budget-conscious shoppers, he added, noting that about half of that work was completed during the recent quarter.

These efforts are driving results, as General Mills said it held or grew its volume-based market share in eight of its top 10 U.S. categories. Finance Chief Kofi Bruce noted, though, that price investments, the recent divestiture of the company's North American yogurt business and trade expenses are putting "significant pressure" on sales and profit.

Sales were $4.52 billion during the recent quarter, in line with Wall Street estimates according to FactSet, and down from $4.85 billion a year earlier. On an organic basis, sales fell about 3%.

Looking forward, the Minneapolis company said its primary goal this year remains to return to organic net sales growth. It backed its full-year organic net sales outlook of down 1% to up 1%.

General Mills plans to achieve its goal by continuing to invest in price, while simultaneously launching new products and increasing its marketing efforts. Product launches during the recent quarter went better than expected, Harmening said, adding that the company is leaning into current trends such as high-protein foods and bold flavors to drive sales.

During the recent quarter, General Mills posted a profit of $1.2 billion, or $2.22 a share, up from $579.9 million, or $1.03 a share, a year earlier. Stripping out certain one-time costs, earnings were 86 cents a share, ahead of the 81 cents a share analysts forecast.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

September 17, 2025 09:23 ET (13:23 GMT)

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