Orlando, Fla. – General Mills Inc. Expect a delay in picking the benefits of the gear strategy, said CEO at the annual conference of the consumer analysts group of New York (CAGNY) in Orlando.
“I am happy with how we have carried out our gear strategy since the launch of five years ago, and I am proud of the strong financial results that we delivered at the time,” Jeffrey Harming, chairman and Chief Executive Officer of MINNEAPOLIS -based General Mills, said on February 18. “Between the Fiscal 2019 and the Tax 2024 we have generated an annual annual growth of 5% in organic net turnover, 5% in constant currency adapted business profit and 7% in constant corrected diluted EPs, all of which were in line or for our long-term goals .
“That said, evolving consumer behavior in today’s economic environment has resulted in a long-term period of stabilization after locked question and then inflation-driven prices,” he noticed. “Although we have driven strong competitiveness in the last five years, it has not met our expectations in the last 18 months. We are fully committed to returning to sales growth, and we will take the actions and make the necessary investments to achieve that goal. “
In his presentation during the event, General Mills predicts the organic net turnover growth from 2% to 3% under its long-term algorithm, with adapted business profits with mid-single figures and adapted diluted profit per share (EPS) increase against the center of the center of to High few figures in constant currency.
When reporting tax results of 2025 second quarter in December, the company maintained its full-year organic net sales forecast from flat to 1%, but reduced its guidelines for adapted business profit, now expected 2% to 4% to fall, and for Adapted profit per share, now it is expected to be 1% to 3%.
“The long -term orientation on the search for value we have seen from consumers has recently yielded challenges for our ability to offer the growth of organic turnover in the short term,” said Kofi Bruce, Chief Financial Officer. “And let me be very clear: we are not satisfied with this version. We fight every day to return to the growth that we know this company is capable of, and we have initiatives during the flight by the company to restore top-line growth. “
Later, in response to an analyst question, Bruce acknowledged that the current consumer environment is such that General Mills’ probably does not expect us to grow in accordance with our 2% to 3% long -term objective, largely because we are price/ expect to remain somewhat filled in as a contribution in the short term. “
Harming said analysts that the No. 1 priority of General Mills is increasing the growth of organic turnover.
“To do that, we work to improve our competitiveness by providing more remarkable experiences that meet evolving consumer needs,” he said.
General Mills’s efforts include increased brand building, including via media and targeted price investments; More product innovation, including various new launches with “potential to be significant growth persons” in Fiscal 2026; More digital investments to build on opportunities created in areas such as data -driven marketing, strategic income management and digitization of the supply chain; And further efficiency initiatives to support the growth of the margin.
Currently, General Mills remains “in the early stages” of plans to accommodate his North -American company, Harming said. The presentation of the company emphasized the progress of his cheerios, Nature Valley, Old El Paso, Progresso, Totinoos and Pet Food Brands, but noted that there is still work at the place on snacks and the Pillsbury -cooled paste company.
“Returning the retail from North America to growth will be crucial for our long-term success,” said Harming. “Our focus in the retail trade in North America is on improving the remarkability of our core brands to stimulate greater penetration of households with growing cohorts of consumers, which ultimately leads to a stronger market share and revenue growth.”
When an analyst asked why General Mills did not give any other update of his tax guidelines for 2025 at the conference, Harming referred to an impact of the chaotic first weeks of the new presidential administration and said report.
“It has been a fleeting few months, I would say, in three important ways,” he said. “One would be Nielsen -movement data, and then the second would be on the customer’s orders. And the third would be the government, in particular rates. While we looked at those three, we wanted to get a few more data points before we confirmed or again supervised the year, and have a few weeks of Nielsen -data under our belts and a little more clarity about what is with rates and customer orders that We thought would be okay. ‘