GENERAL MILLS INC Q3 FY2026 earnings call

• Jeff Harmoning mentioned that three - quarters into the strategy of reinvesting to improve brand remarkability, there is strengthened momentum on critical building blocks for sustainable growth like household penetration, baseline volume, distribution, and market shares. - In North America retail, investments in remarkability are working, rebuilding household penetration and baseline growth. - In pet, adding households and fueling cat feeding portfolio and accelerating growth through Love Made Fresh. - Discussed the agreement to sell the Brazil business, which is part of portfolio shaping to prioritize resources on brands and platforms with strongest growth opportunity. - Mentioned the goal for fiscal 27 is to continue to improve organic sales results while maintaining industry - leading HMM and transformation initiative for efficiency. - Dana McNabb talked about Love Made Fresh progress, including above 5,000 coolers, need to focus on on - shelf availability, launching stand - up resealable pack, and improving marketing to convert to trial. - Jeff Harmoning also spoke about the step up in innovation in North America retail, with NAR tracking higher than 25% growth from new products, leaning into mainstream premium benefits, and plans for more innovation in 27.

North America retail: Investments in remarkability are resonating with consumers, rebuilding household penetration and baseline growth. Pet: Adding households, fueling fast-growing cat feeding portfolio and accelerating growth through Love Made Fresh. Food service: Bakery flour volumes are a weakness, with about half of profit decline in yogurt investiture and about 30 - 35% in flour. Salty snacks: Have had three consecutive quarters of pound and dollar share growth, but hot snack business (e.g., Totino's) is a challenge; grain snacks and fruit snacks focus on better - for - you innovation.

• Reaffirmed guidance for fiscal 26. - Expect to deliver meaningful better top - line and bottom - line performance in Q4 as most of the reinvestment phase is behind. - Goal for fiscal 27 is to increase dollar share competitiveness, with focus on innovation and renovation in NAR and pet. - Anticipate improvement in price mix in fiscal 27 as lapping of price investments occurs. - Guidance on profit has width due to factors like supply chain disruptions and retail inventory recovery. - Mentioned mechanical factors like retailer inventory headwind flipping to tailwind in Q4 and reversal of trade expense timing.

• Consumer being more stressed than in 2019, which may affect promotion activity. - Food service weakness, especially bakery flour volumes, with complex distribution and movement making it hard to predict quick recovery. - Supply chain disruptions and weather related factors impacting shipment timing and adding pressure to results. - Volatility in category growth, which can affect financial performance.

Q: By the end of fiscal year, can General Mills return to some level of volume growth in fiscal 27 despite category growth below longer - term level?

A: Goal is to increase dollar share competitiveness, maintain pounds as much as possible, and let innovation, renovation, marketing increase dollar sales results.

Q: What have been seen competitively in key categories following General Mills' price investments?

A: Price mix in categories was down earlier as it was about getting base shelf prices right, starting to lap it now, expecting price gap to close starting with Pillsbury business, then cereal, etc., and expect price mix growth in fiscal 27.

Q: How is growth tracking for new products versus 25% goal?

A: Overall tracking at about 25%, maybe a little higher in North America retail and between 20 - 25% for portfolio aggregate, with NAR landing a little higher, and good trial and repeat on new products.

Q: Any color on Love Made Fresh acceleration, distribution growth, and on - shelf availability?

A: Pleased with Love Made Fresh launch, above 5,000 coolers, need to focus on on - shelf availability with reps visiting stores weekly, launching stand - up resealable pack, and improving marketing to convert to trial.

Q: Comparison of current spending with pre - COVID, and what's different?

A: Spending on innovation approaching pre - COVID levels, marketing approaching pre - COVID levels, price competitiveness approaching pre - COVID levels, but consumer is more stressed now.

Q: Where can gross margins live for General Mills if organic sales are stable in fiscal 27?

A: Path to improvement is paved by volume stability, leverage improves, HMM cost savings contribute, and combination of factors will help move margins back, but not ready to record exact level for 27 yet.

Q: Sense of inflation for fiscal 27, including freight and other factors?

A: Best estimate on range of inflation is roughly in line with this year, labor is one of the biggest inflationary components, expect another year of industry - leading HMM and contributions from transformation initiatives, and there are other factors like lapping 53rd week, U.S. yogurt results, and incentive comp to consider.

Q: Is positive organic revenue growth off the table for fiscal 4Q?

A: Not banking on dramatic turn in market performance in Q4, expecting improvement from mechanical factors like retailer inventory headwind flipping to tailwind and reversal of trade expense timing.

Q: About food service weakness, is it persistent?

A: Food service overall, eating occasions at home are stable, commercial traffic is down, non - commercial traffic is up, flower business in food service not expected to come back in Q4 of this year soon.

Q: Milestones for Love Made Fresh distribution?

A: Focus on enhancing terms where they are, launching stand - up resealable pack to add distribution within current stores, and focus on marketing at point of purchase.

Q: High single - digit decline in snacks, impact on brands and return to growth?

A: Salty snacks have performed well with three consecutive quarters of pound and dollar share growth, challenge is on hot snack business (e.g., Totino's) with price pack architecture conversion issue, and focus on product quality and marketing.

Q: Inventory retailer inventory adjustments in NAR and pet and reversal in Q4?

A: NAR trends will revert back in Q4, PET has more significant gap, historically hard to predict shipment timing and retailer inventory in PET, so assuming neutral in Q4.

Q: Inventory retailer inventory adjustments impact and reversal in segments for fiscal Q4?

A: NAR net sales and retail sales trends off in Q3 will revert in Q4, PET has about three - point gap, guidance doesn't contemplate headwind or tailwind from PET in Q4.

Q: Swing factors pushing results towards one end or the other?

A: On top line, mechanical factors like retailer inventory reset and trade expense timing; on bottom line, factors like supply chain disruptions, retail inventory recovery, and shipment time and weather related factors.

Q: Freight and inflation for next year?

A: Tracking freight and other inflation factors, factoring into expected inflation range for next year, and will provide more full picture in two more months.

Q: Decision to exit Brazil market?

A: Stems from focusing on core global brands outside US, Brazilian business is under - scaled and portfolio not core global brands, divestment will help improve margin profile and shift resources to places with longer - term right to win.