General Mills leaders talked positively about how their Accelerate program has transformed the company, turning over 30% of sales in new brands and categories since 2018 and making the company more agile and opportunistic. But the results, at least halfway through its fiscal 2025, are unremarkable.
The results “have not met our expectations over the past 18 months,” Jeff Harmening, chairman and CEO, told the Consumer Analyst Group of New York meeting this morning. For the six months ending Nov. 24, 2024, sales were essentially flat at $10.088 billion although net earnings were up 8% to $1.376 billion.
CFO Kofi Bruce also was “not satisfied with our performance ... After five years of market share growth, we stepped back in 2024,” mostly giving up ground to private label products.
Particularly worrisome was a 2-point volume drop in North American retail, which accounts for 63% of the company’s sales – and that comes after FY 2024 saw a 1.5% drop in sales from 2023. Company-wide 2024 sales were down 1%.
Volumes recovered in the other segments –North American foodservice, North American pet and international -- although pricing cuts in the last two business segments partially offset – maybe contributed to -- the volume gains.
Harmening said priorities are returning North American retail to growth, maintaining momentum in foodservice, continuing to grow pet foods (the company acquired Edgard Cooper in Europe) and “step-change growth” in international. For better or worse, China is General Mills’ biggest market outside of North America, and the threat of counter-tariffs in response to those imposed by Trump creates some concern.
