General Mills forecasts weak annual profit due to weak demand and economic uncertainty.

From Yahoo Finance: 2025-06-25 07:10:00

General Mills forecasts annual profit below expectations due to weak demand for refrigerated baked goods and snacks in the U.S., impacted by economic uncertainty from shifting tariff policies. CEO Jeff Harmening cites consumer caution in volatile environment. Shares down 2% in early trading. Company expects full-year profit decline of 10-15%.

Efforts to boost demand through new products like fresh pet food face challenges, with analysts predicting investments in marketing and acquisitions will affect margins. Consumer Edge analyst Connor Rattigan notes profitability pressures but emphasizes importance of returning to volume growth. General Mills posts adjusted profit per share of 74 cents for the quarter, above estimates.

For the fourth quarter, General Mills reports sales of $4.56 billion, slightly missing expectations. North America retail segment sales drop 10%, while pet segment sees a 12% rise. Company anticipates consumer caution to continue amid tariff uncertainty, global conflicts, and changing regulations. Operating environment remains volatile.

Read more: General Mills forecasts weak annual profit as economic uncertainty weighs