General Mills, Inc. (NYSE: GIS) reported first-quarter fiscal 2027 net sales of $4.4 billion, down 3 percent from the prior year, driven primarily by the divestiture of its U.S. yogurt business, according to a company press release. Organic net sales were flat compared to the year-ago period.

Operating profit fell 63 percent to $634 million, largely reflecting a $1.05 billion gain recorded in the first quarter of fiscal 2026 related to the yogurt sale. Adjusted operating profit declined 11 percent in constant currency. Diluted earnings per share came in at $0.74, down 67 percent, while adjusted diluted EPS was $0.75, down 13 percent in constant currency.

By segment, North America Retail net sales declined 7 percent to $2.4 billion, including a 4-point headwind from the yogurt divestiture, with segment operating profit falling 15 percent to $479 million. North America Pet net sales were flat at $613 million, while segment operating profit dropped 12 percent to $100 million. North America Foodservice net sales rose 1 percent to $523 million, with operating profit up 12 percent to $79 million. The International segment posted a 4 percent net sales increase to $794 million, with operating profit rising 14 percent to $75 million.

Cash provided by operating activities totaled $298 million, compared to $397 million a year ago. Capital investments were $90 million. The company paid $330 million in dividends and did not repurchase any shares in the quarter, compared to $500 million in buybacks a year ago.

General Mills completed the sale of its Brazil business to Café Três Corações S.A. on September 2, 2026, after the close of the quarter. The company recorded a $24 million non-cash pre-tax valuation loss on the Brazil disposal group in the first quarter.

The company reaffirmed its full-year fiscal 2027 financial targets, which include organic net sales ranging from down 1.5 percent to up 0.5 percent, adjusted operating profit down 13 percent to 8 percent in constant currency, and adjusted diluted EPS of $3.00 to $3.20. Free cash flow conversion is expected to be approximately 95 percent of adjusted after-tax earnings.