General Mills(US:GIS) Jing Ji Guan Cha Wang·2026-02-12 19:44Core Insights - General Mills reported a 7% year-over-year decline in net sales for Q2 of fiscal year 2026, with net sales amounting to $4.861 billion. The company reaffirmed its full-year guidance, expecting organic net sales to range between -1% and 1% [1][2]. Performance Overview - The adjusted operating profit and earnings per share are projected to decline by 10% to 15% at constant exchange rates. Future performance will need to be monitored to see if the company meets its guidance targets [2]. Strategic Initiatives - General Mills is divesting non-core categories, such as the sale of its yogurt business in the U.S. and Canada, and reallocating resources towards high-margin areas like pet food. The company plans to increase new product innovation investment by 30% and boost marketing spending to drive organic growth. The North American retail segment saw a 13% revenue decline, while the pet food segment grew by 11%, indicating a need for ongoing observation of the transformation's effectiveness [3]. Operational Status - The company has optimized logistics and production processes through artificial intelligence, saving over $20 million in transportation costs since fiscal year 2024, with an expected annualized savings of over $50 million. However, the potential for further cost reductions is narrowing, necessitating a balance between short-term efficiency and long-term innovation investments [4]. Business Development - Due to a sluggish North American market, General Mills is accelerating its expansion into emerging markets such as Asia. For instance, adjustments are being made to the Häagen-Dazs store count in China, with the company seeking growth through product innovation and channel optimization. The international segment reported a 6% sales increase in Q2 of fiscal year 2026, but contributions from emerging markets still need validation [5]. Financial Movements - In the first half of fiscal year 2026, the company paid $659 million in dividends and repurchased $500 million in stock. Future attention will be required on the sustainability of the dividend policy and buyback plans [6].