General Mills reports 8% decline with US$4.4B revenue in Q3FY2026 results
Despite significant headwinds from divestitures and strategic reinvestments, General Mills reaffirmed its full-year fiscal 2026 outlook, signaling confidence in a volume-driven recovery in the final quarter.
USA – General Mills, Inc. has announced its fiscal 2026 third-quarter results, which ended February 22, 2026, revealing net sales of US$4.4 billion, down 8% from the prior year, primarily due to the divestiture of North American yoghurt operations and investments in brand visibility.
Organic net sales declined 3%, driven by unfavorable trade expense timing and strategic spending to boost competitiveness.
Despite these headwinds, the Company reported adjusted earnings per share (EPS) of US$0.64, down 37% on a constant-currency basis from the prior year.
CEO Jeff Harmening emphasized that the first three quarters of fiscal 2026 were intentionally framed as a “reinvestment phase.” Under the “Remarkability Playbook,” General Mills has ramped up spending on product innovation and packaging to restore long-term volume growth.
Operating profit fell sharply to US$525 million, down 41%, driven primarily by lower gross profit dollars in fiscal 2026 and a divestiture gain in the prior-year period.
Adjusted operating profit of US$547 million was down 32% in constant currency, driven by lower adjusted gross profit dollars.
Operating segment results
The North America Retail segment saw net sales decline 14% to US$2.6 billion, primarily due to the yoghurt divestiture and retailer inventory adjustments.
Net sales were down double digits for the Big G Cereal & Canada operating unit, including the impact of the yoghurt divestitures, down high-single digits for US Snacks, and down low-single digits for US Meals & Baking Solutions.
Through nine months, the North America Retail segment net sales were down 13% to $8.1 billion, including a 9-point headwind from divestitures.
Third-quarter net sales for the North America Pet segment were up 3% to US$640 million, including a 6-point benefit from the North American Whitebridge Pet Brands acquisition.
Third-quarter net sales for the North America Foodservice segment were down 11% to US$496 million, including a 7-point headwind from the yoghurt divestitures.
Conversely, the International segment provided a bright spot, with net sales rising 7% to US$696 million, driven by strong performance in China and India.
Third-quarter constant-currency net sales were down 4% for Cereal Partners Worldwide (CPW) and up 3% for Häagen-Dazs Japan (HDJ).
Combined after-tax loss from joint ventures totaled US$6 million in the quarter, compared to earnings of US$14 million in the prior year, driven primarily by the Company’s share of transaction costs related to certain assets held for sale at CPW.
Looking ahead, General Mills reaffirmed its full-year guidance. The Company expects organic net sales to decline between 1.5% and 2.0% for the full year, with adjusted operating profit and adjusted diluted EPS projected to be down 16% to 20% in constant currency.
Management anticipates that favorable timing comparisons and a 53rd week in the fiscal calendar will boost the net sales growth by approximately 4% in the upcoming Q4 results.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
