It’s been another tough (fiscal) year for General Mills, which on June 1 reported an $88 million loss for its FY2026 (ending May 31) and a 5% decline in sales; volumes in most of its reporting segments were down too.

The overall sales decline was expected, given the sale of its Yoplait yogurt business to two different buyers. And most – but not all – of the loss was attributable to special charges. All the numbers benefited somewhat from a 53^rd week in its reporting cycle.

For the year just underway, “With our price investment work behind us, our focus in fiscal 2027 is to improve our topline growth by driving a step change in the remarkability of our brands,” said Chairman and CEO Jeff Harmening. “This includes a significant increase in innovation and renovation centered on the benefits that matter most to today’s consumers.”

The change in operating profit was due primarily to $1.8 billion in non-cash goodwill and brand intangible asset charges driven primarily by an increase in discount rates and a $1.0 billion non-cash pre-tax valuation loss related to the planned divestiture of the Brazil business, the company wrote.

The net loss of $88 million compares to a $2.3 billion profit this time last year. The diluted loss per share totaled 16 cents compared to EPS of $4.10 last year.

Net sales hit $18.4 billion, down from $19.5 billion, “including a 6-point headwind from the net impact of divestitures and acquisitions.” Organic net sales were down 2%.

Full-year sales declined 11% in North American retail and 6% in North American foodservice. Sales were up 6% in North American pet food and up 9% in international business.

Volumes decreased by 11% in North American retail and 6% in foodservice, but were up 6% in pet food and +9% in international.

Despite the difficult full-year results, “We finished fiscal 2026 on a positive note, delivering fourth-quarter adjusted results that met our expectations while continuing to strengthen our foundation to position General Mills for long-term success,” said Harmening. Fourth Quarter net sales were up 1%, including a 7-point benefit from the 53rd week, a 1-point benefit from foreign currency exchange, and a 7-point headwind from the net impact of divestitures and acquisitions. Organic net sales were flat.

At least one financial analyst saw a silver lining.

“A couple years ago, General Mills, like many of its peers, appeared content to bank on an improvement in the consumer's financial situation,” wrote Max Gumport, senior analyst with BNP Paribas Equity Research. “However, in the middle of its FY25, it began to invest most notably in price but also across other facets of its Remarkability program, and in FY26 it broadened out these investments across its portfolio.

“With the base price adjustments now behind it, GIS's focus for FY27 has clearly shifted to investing in benefit-led innovation and renovation along with packaging and communication ... which we view as the right approach amidst changing consumer preferences,” Gumport continued. Although he added, “Now the company must demonstrate these investments will pay off.”

General Mills’ full-year financial targets for fiscal 2027 include organic net sales between down 1.5% and up 0.5% and adjusted operating profit to be down by 8-13%, but adjusted diluted earnings per share to be $3.00-3.20 per share.