General Mills Inc (NYSE:GIS, ETR:GRM) shares headed lower in pre-market trading after the food maker cut its profit outlook for 2025 in line with efforts to bring down prices.
Adjusted operating profit was expected to fall by between 2% and 4% over the year, General Mills said on Wednesday, against a previously anticipated drop of as much as 2%.
Guidance for flat to 1% growth in net sales was held, though General Mills added it was now targeting the lower end of a range.
General Mills chief executive Jeff Harmening noted the reduction followed “incremental investments to bring consumers greater value”.
“While these investments lower our profit outlook [...] they better position General Mills for sustainable growth in fiscal 2026 and beyond,” he said.
Net sales were flat at $10.1 billion over the first half of the year, General Mills added in the update, with operating profit up 10% at $1.9 billion but largely due to an impairment charge previously.
“We made important progress accelerating our volume growth and market share trends in the first half of the year, including returning our North America pet business to growth,” Harmening added.
Shares fell by 4.4% to $63 in pre-market trading.