General Mills Beats Q2 Estimates but Lowers Annual Profit Outlook

The company reports strong quarterly results but forecasts a profit decline due to increased investments in promotions and pricing adjustments.

General Mills reported $5.24 billion in Q2 sales, surpassing analysts' expectations of $5.14 billion, with a 2% year-over-year increase.
Adjusted earnings per share for the quarter were $1.40, significantly exceeding the $1.22 analysts had projected.
The company revised its fiscal 2025 profit forecast downward, now expecting a 1% to 3% decline due to heightened marketing and promotional investments.
General Mills is prioritizing price cuts and promotional efforts to regain price-sensitive consumers who have shifted to private-label brands.
Despite strong Q2 performance, the company’s stock dropped 4% as investors reacted to the lowered profit outlook.