General Mills aims to enhance competitiveness through investments

General Mills held its third-quarter earnings call today, discussing their financial results for the period ending December 31, 2024. CEO Jeff Harmening and CFO Kofi Bruce addressed questions from analysts about the company's performance and strategy. During the call, Harmening noted a continued focus on improving organic growth and cost savings. He emphasized that the consumer environment has not improved as expected, with many shoppers still seeking value. This is reflected in consumer confidence levels, which are currently lower than they were a few months ago. The company plans to increase investments in pricing and marketing, particularly in response to consumer demand for value. They are stepping up their marketing efforts for popular brands like Blue Buffalo and Pillsbury. Harmening mentioned that upcoming innovations and a better value perception should help in regaining competitiveness in the market. Several analysts inquired about challenges in growth, particularly in the snacks and cereal sectors. Harmening acknowledged that while categories are growing, General Mills has lagged behind in capturing market share. He emphasized the importance of strong marketing and innovative product offerings to regain momentum. In terms of inventory issues, the company experienced a drag on profits due to higher retailer inventory levels in both the North American retail and pet segments. However, they expect inventory levels to stabilize moving forward. Overall, General Mills is focused on reinvesting savings into growth initiatives while adapting their strategies to meet changing consumer preferences and market conditions. They aim to drive improvements in sales and market share in the coming quarters.