General Mills Shares Rise After Earnings Beat Despite Divestiture Headwinds

Core Insights - General Mills, Inc. reported second-quarter results that exceeded expectations, with adjusted earnings of $1.10 per share, surpassing analyst estimates of $1.02 [2] - The company's net sales totaled $4.9 billion, above the consensus estimate of $4.78 billion, despite a 7% year-over-year decline [2] - Shares rose more than 3% intra-day following the earnings release [1] Financial Performance - Adjusted operating profit fell 20% in constant currency terms to $848 million, with adjusted operating margin contracting 290 basis points to 17.4% [3] - The North America Retail segment, the largest by revenue, experienced a 13% decline in net sales, including a 10-point drag from yogurt divestitures [3] - Organic net sales declined 1% from a year earlier [2] Segment Performance - The North America Pet segment saw net sales rise 11%, supported by the acquisition of Whitebridge Pet Brands [4] - The International segment delivered growth, with net sales increasing 6% due to strong performance in Brazil, China, India, and North Asia [4] Future Outlook - General Mills reaffirmed its fiscal 2026 outlook, projecting organic net sales to range from a 1% decline to a 1% increase [5] - The company forecasts adjusted operating profit and adjusted diluted earnings per share to fall 10% to 15% in constant currency [5]