General Mills (NYSE: GIS) reported net sales of $5.12 billion, nearly flat compared to the same quarter last year, but in line with analyst expectations. Earnings per share (EPS) came in at $1.02, slightly above estimates, demonstrating the company’s effective cost control despite a soft revenue environment. Operating profit margins also held steady, supported by productivity initiatives and ongoing supply chain optimization.

In the company’s latest earnings call, CEO Jeff Harmening and other executives detailed how General Mills is leveraging AI, data analytics, and supply chain digitization to adapt to market shifts. “We continue to invest in digital capabilities, including AI and machine learning, to improve demand forecasting and sharpen our supply chain responsiveness,” Harmening said. The company framed these investments as crucial not only for immediate cost management but for building long-term resilience in the food industry.

Why It Matters: Technology is playing a growing role in how consumer goods companies navigate inflationary pressures and shifting customer preferences. General Mills’ commitment to digital capabilities reflects broader trends across the industry, where data-driven decision making is becoming essential for competitiveness and margin protection.

• AI and Demand Forecasting: General Mills is applying artificial intelligence and machine learning across its operations to refine demand forecasting and improve production efficiency. By leveraging these tools, the company aims to minimize excess inventory and reduce waste, a significant advantage in the current environment of volatile consumer demand. Jeff Harmening noted, “We continue to invest in digital capabilities, including AI and machine learning, to improve demand forecasting and sharpen our supply chain responsiveness,” underlining the central role of predictive analytics in its operational strategy.

• Supply Chain Digitization: As part of its broader productivity push, General Mills is digitizing its end-to-end supply chain to gain real-time visibility into inventory, sourcing, and logistics. These upgrades allow the company to respond more quickly to changes in raw material costs, consumer behavior, and global supply disruptions. This digital infrastructure is also supporting faster decision-making and more agile resource allocation, key components of the company’s margin protection initiatives.

• Personalized Consumer Engagement: The company is expanding its use of first-party data to drive more targeted, personalized marketing efforts, especially across its high-volume brands in cereal, snack bars, and pet food. “We’re leveraging first-party data to deliver more personalized marketing at scale, especially across our core brands where consumer loyalty is critical,” said Dana McNabb, Chief Strategy & Growth Officer. These capabilities help the company tailor messaging and promotions to individual customer segments, improving engagement and return on marketing investment.

• Profitability Through Digital Efficiency: General Mills is closely tying its digital transformation efforts to financial performance, especially in terms of enhancing operating margins. CFO Kofi Bruce emphasized that the “Accelerate” strategy is more than a growth framework, it’s also a margin play. “Our Accelerate strategy ties digital transformation directly to margin enhancement, we’re seeing real results from data-led decisions across our value chain,” Bruce said. This includes digital tools that streamline manufacturing, reduce procurement inefficiencies, and enhance pricing agility.

• Outlook and Long-Term Strategy: Looking ahead, the company expects technology to remain a cornerstone of its strategic roadmap. General Mills plans to continue investing in data infrastructure, AI systems, and automation as it prepares for evolving retail trends and consumer preferences. With digital tools now embedded in everything from supply chain operations to marketing, executives believe these capabilities will help the company maintain its competitive edge, control costs, and adapt faster to market pressures in both domestic and international segments.

Go Deeper -> General Mills Earnings Call Transcript – MarketBeat