General Mills first-quarter net sales drop to $4.4 billion as company reaffirms outlook

General Mills, Inc. (GIS) reported first-quarter net sales of $4.4 billion, down 3 percent from a year earlier, according to a regulatory filing Tuesday. The company said the decline was driven by the divestiture of its U.S. yogurt business, while organic net sales were flat.

Key takeaways

• Net sales fell 3 percent to $4.4 billion from a year earlier.
• Operating profit dropped 63 percent to $634 million, weighed down by a $1 billion gain on the prior-year yogurt divestiture.
• Diluted earnings per share decreased 67 percent to 74 cents.
• The company reaffirmed its full-year fiscal 2027 outlook.

First-quarter results

Here's how the company did:

• Net sales were $4.4 billion, down 3 percent from $4.5 billion a year earlier.
• Diluted earnings per share were 74 cents, down from $2.22 a year earlier.
• Adjusted diluted earnings per share were 75 cents, down 13 percent in constant currency.

General Mills Chairman and Chief Executive Officer Jeff Harmening said in a statement that the company is off to an encouraging start in fiscal 2027. He noted that management is driving improved topline performance with stronger product innovation and renovation focused on consumer benefits.

Gross margin was unchanged at 33.9 percent of net sales, with higher input costs offset by favorable mark-to-market effects and net price realization. Adjusted operating profit was $634 million, down 11 percent in constant currency.

Segment performance

North America Retail net sales were down 7 percent to $2.4 billion, reflecting a 4-point headwind from the U.S. yogurt divestiture and lower volume. Segment operating profit fell 15 percent to $479 million.

North America Pet net sales were flat at $613 million. Segment operating profit dropped 12 percent to $100 million due to higher input costs and lower volume.

North America Foodservice net sales increased 1 percent to $523 million, while segment operating profit rose 12 percent to $79 million.

International net sales increased 4 percent to $794 million, driven by growth in distributor markets, India, and China. Segment operating profit increased 14 percent to $75 million.

Fiscal 2027 outlook

The company reaffirmed its full-year financial targets for fiscal 2027, expecting organic net sales to range between down 1.5 percent and up 0.5 percent. Adjusted operating profit is expected to be down 13 percent to down 8 percent in constant currency, and adjusted diluted earnings are projected between $3.00 and $3.20 per share.

Why it matters

The results highlight the ongoing transition following the divestiture of the U.S. yogurt business and the Brazil business sale completed on September 2, 2026. Management continues to rely on cost savings from its Holistic Margin Management program and global transformation initiatives to offset input cost inflation.

By the numbers

What happens next

The company noted that it completed the sale of its business in Brazil to Café Três Corações S.A. on September 2, 2026, subsequent to the close of the first quarter. Management expects to record customary post-closing sale price adjustments related to the transaction in the second quarter of fiscal 2027.

General Mills also plans to release pre-recorded management remarks and hold a webcasted question-and-answer session on Tuesday, September 23, 2026, to discuss the quarterly financial results and outlook further.