General Mills builds on pet food momentum as FY2025 softens

General Mills concluded its fiscal year 2025 (FY2025) with a mixed performance, meeting its revised guidance but experiencing modest declines across key financial metrics.

For the full year ending 25 May 2025, the Minneapolis manufacturer achieved net sales of $19.5 billion (€16.7B), a 2% decrease compared to FY2024.

Organic net sales were also down 2%, and adjusted operating profit declined by 7% in constant currency. Adjusted diluted earnings per share dropped 7% to $4.21 (€3.60).

The fourth quarter (Q4) mirrored these trends, with organic net sales declining 3% and adjusted operating profit falling 22% compared to the prior year.

Pet food gains

Against this softer backdrop, the company’s pet food business, anchored by the Blue Buffalo brand, delivered strong results.

For the full year, North America Pet segment net sales increased 4% to $2.5 billion (€2.1B), with organic net sales remaining in line with the previous year.

Fourth-quarter net sales were up 12% to $675 million (€577M), including a 9-point benefit from the Whitebridge Pet Brands acquisition.

Organic net sales for the segment increased 3% in Q4, significantly outperforming the company’s overall sales trajectory, and were driven by strong performances in wet food and treats, each delivering double-digit sales increases, while dry food posted mid-single-digit gains.

On the profit side, the North American pet portfolio saw a 3% increase in full-year segment operating profit, supported by cost-saving initiatives under the company’s Holistic Margin Management program.

However, these gains were partially offset by a double-digit increase in media investments and some unfavorable price and mix dynamics.

“Our competitiveness in pet food improved in fiscal 2025, with dollar share growth on dog feeding, which represented 60% of our pet US retail sales,” says Chairman and CEO Jeff Harmening.

Pet expansion

General Mills is doubling down on its pet segment, prioritizing the acceleration by expanding its portfolio.

This includes the national rollout of Blue Buffalo’s new “Love Made Fresh” line of fresh pet food, which the company says will position the brand as the most extensive US pet food offering with solutions across the dry, wet and fresh categories.

“The Love Made Fresh portfolio gives Blue Buffalo a remarkable, differentiated offering in US fresh pet food, a $3 billion sub-category today and one which we project will grow to $10 billion in the next ten years,” adds Harmening.

The company is also bringing European premium brand Edgard & Cooper to US shelves and introducing more humanized innovation in its cat feeding segment.

In the broader context of the company’s performance, Harmening emphasizes that second-half investments “worked as expected,” helping stabilize volume and pound share across several key categories. While overall volume was flat year-over-year ­– a 3-point improvement from FY2024 – the firm remains focused on reigniting volume-driven organic growth.

Looking ahead

For FY 2026, General Mills projects organic net sales to range from a decrease of 1% to an increase of 1%, reflecting modest expectations amid ongoing inflation in input costs and competitive pricing pressures.

Adjusted operating profit and adjusted EPS are both forecasted to decline between 10% and 15%, although the company expects a strong free cash flow conversion rate of 95% or higher.

According to Harmening, the firm’s one goal for the next fiscal year is to restore volume-driven organic sales growth.

“To do that, we’ll invest further in consumer value, product news, innovation and brand building, guided by our remarkable experience framework and highlighted by Blue Buffalo’s national launch into fresh pet food coming later in calendar 2025,” the CEO concludes.