General Mills Expects Slowdown in Growth Strategy Benefits
General Mills Inc. anticipates a deceleration in realizing the advantages of its Accelerate growth strategy, as stated by top executives at the Consumer Analyst Group of New York (CAGNY) annual conference in Orlando.
Jeffrey Harmening, the chairman and CEO of General Mills, expressed satisfaction with the execution of the Accelerate strategy over the past five years. However, he acknowledged challenges due to evolving consumer behavior and economic conditions affecting the company’s performance over the last 18 months.
The company forecasts a 2% to 3% organic net sales growth under its long-term algorithm, with adjusted operating profit and adjusted diluted EPS expected to rise by mid-single digits in constant currency.
Despite maintaining its full-year organic net sales forecast, General Mills adjusted its projections for operating profit and EPS downward following the second-quarter results for fiscal 2025.
General Mills is focused on reigniting top-line growth through increased brand-building, product innovation, digital investment, and efficiency initiatives. The company is working on enhancing the remarkability of core brands to drive market share and sales growth.
While the company remains in the early stages of revitalizing its North American business, it has made progress with various brands but identified opportunities for improvement in snacks and the Pillsbury refrigerated dough segment.
General Mills plans to provide an updated outlook with its third-quarter report, taking into account recent volatility in Nielsen data, customer orders, and government policies such as tariffs.