08:57 AM EST, 12/18/2024 (MT Newswires) -- General Mills ( GIS ) lowered its full-year earnings outlook on Wednesday as it increases investments to improve volume and market share trends, even though the packaged foods maker recorded better-than-expected fiscal second-quarter results.

The company now expects adjusted earnings to be down 1% to 3% in constant currency terms for fiscal 2025, compared with its previous guidance for a 1% decrease to 1% gain. It still projects organic sales to be in a range of flat to up 1%, but near the lower end. The stock fell 4.4% in premarket activity.

"We made important progress accelerating our volume growth and market share trends in the first half of the year, including returning our North America pet business to growth," Chief Executive Jeff Harmening said in a statement. "To achieve and build on these enterprise-wide gains, we've made incremental investments to bring consumers greater value."

These investments, which prompted the lower profit outlook, are expected to "better position" the group for sustainable growth in fiscal 2026 and beyond, according to Harmening.

For the three months through Nov. 24, General Mills ( GIS ) posted adjusted earnings of $1.40 a share, up from $1.25 the year before, topping the Street's view for $1.22. Sales inclined 2% to $5.24 billion, ahead of analysts' $5.14 billion estimate. Sales ticked up 1% on an organic basis.

Favorable timing of items such as the Thanksgiving holiday and an increase in retailer inventory bolstered results but are anticipated to reverse in the second half, the maker of Cheerios and Dunkaroos said.

North America retail sales edged up to $3.32 billion from $3.31 billion in the 2023 quarter, as higher prices were offset by lower pound volume. Revenue increased by mid-single-digits for the US morning foods operating division, while decreasing by low-single digits in US snacks. Sales were down low-single digits for US meals and baking solutions and declined mid-single digits for Canada in constant currency.

Pet sales in North America came in at $595.8 million, up from $569.3 million in the prior-year period. The segment logged high-single-digit, mid-single-digit and low-single-digit gains for dry pet food, wet pet food and pet treats, respectively. North American foodservice sales advanced 8% to $630 million.

International revenue nudged higher to $690.6 million from $683.1 million last year, including a four-point benefit from the company's acquisition of European pet food brand Edgard & Cooper in April.