09:14 AM EDT, 09/17/2025 (MT Newswires) -- General Mills' ( GIS ) fiscal first-quarter results fell year over year amid lower volume, although the parent company of the Cheerios and Betty Crocker brands reiterated its full-year outlook.

Adjusted earnings dropped to $0.86 per share for the three months through Aug. 24 from $1.07 the year before, but topped the FactSet-polled consensus of $0.81. Sales decreased 7% to $4.52 billion, largely in line with the Street's view. On an organic basis, sales were down 3%.

The stock dropped nearly 3% in the most recent premarket activity.

For fiscal 2026, General Mills ( GIS ) continues to project adjusted EPS to decrease by 10% to 15% in constant currency and organic sales to be down 1% to up 1%. Headwinds from divestitures, acquisitions and foreign currency are still forecast to reduce full-year net sales growth by about 4%, the company said.

"Our primary goal in fiscal 2026 is to restore organic sales growth by investing in greater value, innovation, and product news for consumers," Chief Executive Jeff Harmening said in a statement. "We will continue to drive further improvement this year behind disciplined execution of our price investments, new advertising campaigns, stronger in-store events and exciting innovation."

The company plans to increase its brand investments to return to volume-driven organic sales growth, including launching Blue Buffalo into the fresh pet food segment in the second quarter. It anticipates these efforts to initially improve pound growth and market share and expects to return to dollar gains after the first price investment phase.

The impact of North American Yogurt business divestiture and the North American Whitebridge Pet Brands acquisition in December 2024 is estimated to be a five-point headwind to its full-year adjusted operating profit, General Mills ( GIS ) said.

For the first quarter, North America retail sales dropped 13% to $2.63 billion, weighed down by lower pound volume. Revenue slipped by double-digits in the Big G Cereal & Canada operating unit, which represents a combination of the previous US Morning Foods and Canada segments. Sales fell by high single-digits in the US snacks unit, and decreased by a low single-digit for the US meals and baking solutions division.

Pet sales in North America improved 6% to $610 million. Within the segment, and including the Whitebridge acquisition, the group recorded double-digit revenue growth for cat food and pet treats, while dog food moved down by a mid-single-digit. North America foodservice sales retreated 4% to $516.7 million, while international revenue climbed 6% to $760.2 million.