General Mills Q2 Revenue Beats, Lowers Profit Outlook

General Mills reported a strong fiscal second-quarter performance with revenue of $5.24 billion, surpassing analysts' expectations of $5.14 billion, and a 15% higher-than-expected adjusted profit of $1.40 per share. Despite these results, the company lowered its earnings forecast for fiscal 2025, projecting a decline in adjusted earnings per share between 1% and 3%, due to increased investments in promotional activities aimed at driving sales amid competitive pricing pressures. General Mills' strategic price reductions across product lines have succeeded in reviving sales volumes, particularly in segments like North America Pet, which saw a 36% operating profit increase. However, international operations faced challenges, with a 31% decline in operating profit attributed to unfavorable pricing and higher costs. The company's shares fell by about 4% following the announcement of the revised earnings outlook, reflecting investor concerns over its profitability amidst heightened competition and investment strategies. This reallocation of resources underlines General Mills' focus on sustainable growth and market share expansion in the competitive packaged foods industry.