General Mills Inc (NYSE:GIS) stock rose 0.08% (As on March 19, 11:44:00 AM UTC-4, Source: Google Finance) after the company reported third-quarter results that fell short of Wall Street expectations, weighed down by a decision to lower prices. Organic net sales declined 3% in the quarter, driven by lower organic pound volume and unfavorable organic net price realization and mix. The North America Retail segment saw organic net sales down 4%, though the company held or gained pound share in seven of its top 10 U.S. categories. The company said sales declines in North America for the current quarter were largely in line with internal expectations after shaving prices across two-thirds of its portfolio and divesting its yogurt business. Adjusted operating profit of $547 million fell 32% in constant currency, pressured by lower volume and higher input costs.
Moreover, General Mills said in December that it had cut prices across roughly two-thirds of its North American retail business in the face of shaky consumer sentiment. The company said it focused on getting below key listed price levels, not offering more deals, and expects to see prices edge up in the next fiscal year. In the most recent quarter, net sales fell in the “high single digits” for US snacks, weighed down by Totino’s pizza rolls, and low single digits for meals and baking solutions, the company said.
GIS in the third quarter of FY 26 has reported the adjusted earnings per share of $0.64, missing the analysts’ estimates for the adjusted earnings per share of $0.73. The company had reported the adjusted revenue decline of 8 percent to $4.4 billion in the third quarter of FY 26, slightly missing the analysts’ estimates for revenue of $4.41 billion.
The company reaffirmed its full-year fiscal 2026 guidance, projecting organic net sales to decline 1.5% to 2%, with adjusted operating profit and adjusted diluted EPS both expected to fall 16% to 20% in constant currency. The company expects a significant sequential improvement in the fourth quarter, driven by favorable timing comparisons, the benefit of a 53rd week, and continued market share momentum.
On the other hand, GIS has entered into a definitive agreement to sell its Brazil business to 3corações. The transaction includes a portfolio of local brands such as Yoki and Kitano. The sale is expected to close by the end of calendar 2026, subject to regulatory approvals and customary closing conditions.