GENERAL MILLS INC Q2 FY2026 earnings call

Management Statement and Operational Highlights

• North America Retail: Improved volumes via remarkability framework. Pricing actions 90+% effective. New product innovation up ~25% Y/Y. Events and media ROIs up. 8 of top 10 categories growing pound share.
• North America Pet: Core business momentum (Life Protection Formula share growth, Cat business mid-single digit growth, treats business pound share up). Love Made Fresh initiative progress (coolers, market share, ratings). Wilderness business needing work.
• HMM and Transformation: Tracking 5% HMM improvement. Transformation initiatives ongoing.

Segment Performance

• North America Retail (NAR): Organic sales improving. 90-plus percent of pricing actions started a year ago worked as well or better than expected. New product innovation up ~25% Y/Y. 8 of top 10 categories growing pound share. Events and media ROIs up.
• North America Pet: Core business showing momentum (Life Protection Formula share growth, Cat business mid-single digit growth, treats business pound share up). Love Made Fresh initiative: ~4,658 coolers by year-end, ~5% market share, 4.8 out of 5 star ratings on products. Wilderness business needs further work.

Guidance

• Full year guidance unchanged. Q3 expected to be impacted by trade expense timing and other factors. Q4 expected to benefit from ~$100M favorable tailwind from trade expense timing and 53rd week. Second half expected organic sales improvement. Q4 to have ~30% profit growth due to trade timing and 53rd week.

Risks

• Competitive environment and potential price reductions by peers.
• Supply chain and inventory challenges.
• Consumer behavior changes (e.g., shift to unmeasured channels in Pet, impact of SNAP reductions).
• Tariff phasing impact on costs.

Q: Peter Galbo asks about sustainability of volume growth in North America Retail.

A: Dana McNabb says Nielsen pounds flat, expect to continue category improvement and avoid giving forward statements.

Q: Andrew Lazar asks about price mix and gap narrowing.

A: Jeffrey Harmening talks about volatility and timing impacts, mentioning trade phasing and mix effects in quarters.

Q: Andrew Lazar asks about dog feeding category in Pet.

A: Dana McNabb says dog feeding lags on pounds/dollars due to unmeasured channels, shift to smaller dogs, and consumer pullback; long term growth expected.

Q: Max Gumport asks about volume sustainability post price cuts and investments.

A: Dana McNabb says 90% of price investments working, will monitor environment; back half depends on remarkability framework elements.

Q: John Baumgartner asks about consumer behavior and promo.

A: Jeffrey Harmening talks about eating at home, category switching, and promo rationality; Dana McNabb reiterates promo environment rational.

Q: Tom Palmer asks about inflation, tariffs, and international.

A: Kofi Bruce talks about 3% base inflation, tariff headwind, and international timing; Jeff Siemon adds on coverage and cost timing.

Q: Steve Powers asks about Love Made Fresh interplay and HMM in back half.

A: Jeffrey Harmening says Love Made Fresh too early to tell impact; Kofi Bruce talks about HMM impact and Q4 tailwinds.

Q: Megan Clapp asks about higher cost of volume and full year outlook.

A: Kofi Bruce talks about cost of volume pressure in Q3 and full year guidance unchanged.

Q: Chris Carey asks about pricing investment percentage and savings.

A: Dana McNabb talks about 2/3 portfolio with price investments, progress in some categories; Jeffrey Harmening affirms 90+% success.

Q: David Palmer asks about fiscal '27 profit growth.

A: Kofi Bruce says premature to build on F '27, mentions 53rd week and momentum building.

Q: Matt Smith asks about less effective pricing areas and channel shift in Pet.

A: Dana McNabb talks about Totino's conversion and e-commerce taking share in Pet.