General Mills: Fiscal Q3 Earnings Snapshot

General Mills, Inc. (GIS) is set to report its fiscal 2025 third-quarter earnings on March 19, 2025. The company is expected to face a decline in both its top and bottom lines, with revenues projected to drop by 2.8% to nearly $5 billion and earnings per share (EPS) expected to fall by 18.8% to 95 cents. This decline is attributed to rising selling, general, and administrative (SG&A) expenses, particularly due to increased media investments, and broader industry-wide inflationary pressures.



The company's Holistic Margin Management strategy has been implemented to mitigate these escalating costs, but the projected 80-basis-point decline in adjusted gross margin to 33.2% indicates that these measures may not be fully effective. Additionally, the anticipated 4% input cost inflation in fiscal 2025 is likely to have affected the fiscal third quarter, further squeezing profit margins.

General Mills' CEO, Jeffrey Harmening, highlighted the company's focus on accelerating organic sales growth and volume growth by leveraging a remarkable experience framework to improve market share. However, the continued cutting on discretionary food spending by price-conscious customers remains a hindrance to volume recovery.

Despite these challenges, General Mills is banking on the strength of its brand and supply chain efficiency to drive growth. The company has been investing in enhancing customer value, which is expected to position it for sustainable growth in 2026 and beyond. However, these investments could affect profitability in the short term.



In conclusion, while General Mills faces significant challenges in the third quarter of fiscal 2025, the company's strategic investments and focus on enhancing customer value could position it for long-term growth. However, the near-term outlook remains uncertain, and investors should closely monitor the company's performance in the coming quarters.