The cereal and pet food manufacturer's fourth-quarter results shifted from profit to loss.

General Mills reported a $2.01 billion net loss for its fourth quarter, primarily driven by a $1.8 billion non-cash impairment charge. The company's performance reversed from a year-ago profit, and for the new fiscal year, it aims to regain market share through cost reductions, efficiency improvements, and expanding its product portfolio.

The company released its earnings on Wednesday, showing a net loss of $2.01 billion, or $3.74 per share, for the quarter ended in May. This compares to a net profit of $294 million, or $0.53 per share, in the same period last year.

Excluding various one-time items, the company's adjusted earnings per share were $0.95, surpassing the analyst consensus estimate of $0.80, according to financial data firm FactSet.

Quarterly revenue saw a modest 1% increase year-over-year, reaching $4.61 billion, slightly above the analyst forecast of $4.59 billion.

The shift to a loss was mainly attributed to an $1.8 billion non-cash charge related to a higher discount rate, alongside a $1 billion non-cash valuation loss from the planned divestiture of its Brazil operations.

The company anticipates growth across its categories in fiscal 2027 to be below its long-term historical average, influenced by a challenging consumer environment. General Mills forecasts full-year adjusted earnings per share in the range of $3.00 to $3.20, compared to an analyst consensus estimate of $3.13.

CEO Jeff Harmening stated that the company's investments in pricing are now complete, and the current focus is on building distinctive brand advantages to drive sales volume growth.

Harmening said, "We will significantly increase our efforts in new product development and the upgrading of existing products, centered on the product value that consumers care about most today."

General Mills, which owns brands like Cheerios and Annie's macaroni and cheese, indicated it will prioritize new product development with marketing strategies focused on core consumer concerns, emphasizing high-quality ingredients like protein and fiber. Rich flavors and the humanization of pet food are also key future growth areas.

Additionally, the company plans to cut $3 billion in costs by fiscal 2030, aiming to improve overall operational efficiency to counter inflationary pressures.

The stock opened 9.6% higher.