General Mills Reports Decline in Q2 Financial Performance, Net Sales Down 7%

General Mills, Inc. reported a decline in financial performance for the second quarter and six-month period ending November 23, 2025, as detailed in its latest 10-Q filing. The company recorded net sales of $4.86 billion for the quarter, a decrease of 7% from $5.24 billion in the same period last year. For the six-month period, net sales also fell by 7% to $9.38 billion, down from $10.09 billion. The decline in revenue was attributed to lower volume growth, despite some offset from favorable net price realization and product mix.

Operating profit for the second quarter decreased significantly by 32% to $728 million, compared to $1.08 billion in the prior year. The six-month operating profit increased by 29% to $2.45 billion, primarily due to a substantial gain from the divestiture of the U.S. yogurt business, which contributed a pre-tax gain of $1.05 billion. However, adjusted operating profit for the six-month period fell by 19% on a constant-currency basis, reflecting challenges in volume growth and increased input costs.

Strategically, General Mills has undergone significant changes, including the divestiture of its U.S. yogurt business to Groupe Lactalis and the acquisition of Whitebridge Pet Brands for $1.4 billion. The company aims to enhance its North America Pet segment, which saw an 11% increase in net sales for the quarter, driven by favorable pricing and volume growth. The North America Retail segment, however, experienced a 13% decline in net sales, reflecting challenges in volume growth and the impact of the yogurt divestiture.

Operationally, General Mills reported a decrease in customer engagement metrics, with organic net sales down 1% for the quarter and 2% for the six-month period. The company also faced increased restructuring and impairment costs, totaling $122 million for the quarter, which included a $53 million non-cash impairment charge related to the Uncle Toby's brand. The effective tax rate for the quarter was 23.3%, up from 20.1% in the previous year, influenced by an unfavorable earnings mix.

Looking ahead, General Mills anticipates continued challenges in the consumer backdrop, with expectations for category growth to remain below long-term projections. The company plans to invest in consumer value and product innovation to strengthen its market position. Despite the anticipated impact of divestitures and acquisitions on adjusted operating profit growth, General Mills remains focused on driving efficiencies and reinvesting in growth initiatives.