General Mills Reports Fiscal 2025 Second-Quarter Results and Updates Full-Year Outlook
General Mills (GIS) reported Q2 fiscal 2025 results with net sales up 2% to $5.2 billion and organic net sales increasing 1%. Operating profit rose 33% to $1.1 billion, while diluted EPS increased 39% to $1.42. The company's performance was boosted by certain timing benefits expected to reverse in the second half.
The company updated its fiscal 2025 outlook, now targeting the lower end of its flat to 1% organic net sales growth range. Adjusted operating profit is expected to decline 2-4% in constant currency, revised down from previous guidance of flat to -2%. The updated outlook reflects increased investments to support volume growth and market share improvements.
Key segment performance included flat North America Retail sales, 5% growth in North America Pet, 8% growth in North America Foodservice, and 1% growth in International.
General Mills (GIS) ha riportato i risultati del secondo trimestre dell'esercizio 2025, con vendite nette in aumento del 2% a 5,2 miliardi di dollari e un aumento delle vendite nette organiche dell'1%. L'utile operativo è cresciuto del 33% a 1,1 miliardi di dollari, mentre l'EPS diluito è aumentato del 39% a 1,42 dollari. Le prestazioni dell'azienda sono state sostenute da alcuni benefici temporali che ci si aspetta si invertiranno nella seconda metà dell'anno.
L'azienda ha aggiornato le sue previsioni per l'esercizio 2025, puntando ora alla parte inferiore dell'intervallo di crescita delle vendite nette organiche stabile a +1%. Si prevede un calo dell'utile operativo rettificato del 2-4% a cambi costanti, rivisto rispetto alle precedenti previsioni di stabilità a -2%. L'aggiornamento delle prospettive riflette investimenti aumentati per sostenere la crescita del volume e i miglioramenti della quota di mercato.
Le prestazioni chiave per segmento hanno incluso vendite al dettaglio in Nord America stabili, crescita del 5% nel settore pet in Nord America, crescita dell'8% nel servizio alimentare in Nord America e crescita dell'1% a livello internazionale.
General Mills (GIS) reportó los resultados del segundo trimestre del año fiscal 2025, con ventas netas al alza del 2% hasta 5.2 mil millones de dólares y un incremento del 1% en las ventas netas orgánicas. El beneficio operativo aumentó un 33% hasta 1.1 mil millones de dólares, mientras que el EPS diluido creció un 39% hasta 1.42 dólares. El desempeño de la compañía se vio impulsado por ciertos beneficios por temporización que se espera se reviertan en la segunda mitad del año.
La compañía actualizó su perspectiva para el año fiscal 2025, apuntando ahora hacia el extremo inferior de su rango de crecimiento de ventas netas orgánicas estable a 1%. Se espera que el beneficio operativo ajustado disminuya entre un 2-4% en moneda constante, revisado a la baja desde la guía anterior de estabilidad a -2%. La perspectiva actualizada refleja un aumento en las inversiones para apoyar el crecimiento del volumen y las mejoras en la cuota de mercado.
El desempeño clave por segmento incluyó ventas minoristas en Norteamérica estables, un crecimiento del 5% en el sector de mascotas en Norteamérica, un crecimiento del 8% en el servicio de alimentación en Norteamérica y un crecimiento del 1% en Internacional.
General Mills (GIS)는 2025 회계 연도 2분기 실적을 발표하며 순매출이 2% 증가한 52억 달러와 유기적 순매출이 1% 증가했다고 보고했습니다. 운영 이익은 33% 증가하여 11억 달러에 달했으며, 희석 주당 순이익(EPS)은 39% 증가하여 1.42달러에 이르렀습니다. 회사의 성과는 하반기에 되돌릴 것으로 예상되는 특정 일시적 이점에 의해 지원받았습니다.
회사는 2025 회계 연도 전망을 업데이트하며, 현재 유기적 순매출 성장 범위의 하단을 목표로 하고 있습니다. 조정된 운영 이익은 상수 통화 기준으로 2-4% 감소할 것으로 예상되며, 이전 가이드라인에서 수정된 수준인 안정세에서 -2%로 조정되었습니다. 업데이트된 전망은 볼륨 성장 및 시장 점유율 향상을 지원하기 위한 투자의 증가를 반영합니다.
핵심 세그먼트 성과에는 북미 소매 판매의 안정, 북미 애완동물 부문에서의 5% 성장, 북미 식음료 서비스에서의 8% 성장, 그리고 해외에서의 1% 성장이 포함되었습니다.
General Mills (GIS) a annoncé les résultats du deuxième trimestre de l'exercice 2025, avec des ventes nettes en hausse de 2% à 5,2 milliards de dollars et une augmentation de 1% des ventes nettes organiques. Le bénéfice d'exploitation a augmenté de 33% à 1,1 milliard de dollars, tandis que le bénéfice par action dilué a augmenté de 39% à 1,42 dollar. La performance de l'entreprise a été soutenue par certains avantages de timing qui devraient s'inverser dans la seconde moitié de l'année.
L'entreprise a mis à jour ses prévisions pour l'exercice 2025, visant désormais le bas de son fourchette de croissance des ventes nettes organiques stable à 1%. Le bénéfice d'exploitation ajusté devrait diminuer de 2 à 4% en monnaie constante, revu à la baisse par rapport à l'ancienne prévision de stabilité à -2%. L'actualisation des prévisions reflète une augmentation des investissements pour soutenir la croissance du volume et l'amélioration de la part de marché.
Les performances clés par segment incluaient des ventes au détail en Amérique du Nord stables, une croissance de 5% dans le secteur des animaux de compagnie en Amérique du Nord, une croissance de 8% dans les services alimentaires en Amérique du Nord et une croissance de 1% à l'international.
General Mills (GIS) hat die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025 veröffentlicht, mit netto Umsatzsteigerungen von 2% auf 5,2 Milliarden Dollar und einem Anstieg der organischen Nettoverkäufe um 1%. Der Betriebsgewinn stieg um 33% auf 1,1 Milliarden Dollar, während das verwässerte Ergebnis je Aktie (EPS) um 39% auf 1,42 Dollar zunahm. Die Leistung des Unternehmens wurde durch bestimmte Zeitvorteile gestärkt, von denen erwartet wird, dass sie sich in der zweiten Hälfte umkehren.
Das Unternehmen hat seinen Ausblick für das Geschäftsjahr 2025 aktualisiert und strebt nun das untere Ende seines Bereichs für flache bis 1% organisches Umsatzwachstum an. Der bereinigte Betriebsgewinn wird voraussichtlich in konstanten Währungen um 2-4% zurückgehen, angepasst von der vorherigen Prognose von stabil bis -2%. Der aktualisierte Ausblick reflektiert erhöhte Investitionen zur Unterstützung des Volumenwachstums und der Marktanteilsverbesserungen.
Die wichtige Segmentperformance umfasste stabile Einzelhandelsumsätze in Nordamerika, ein Wachstum von 5% im Bereich Haustierbedarf in Nordamerika, ein Wachstum von 8% im Bereich Nahrungsdienstleistungen in Nordamerika und ein Wachstum von 1% im internationalen Geschäft.
- Net sales increased 2% to $5.2 billion with higher pound volume
- Operating profit up 33% to $1.1 billion
- Diluted EPS grew 39% to $1.42
- North America Pet segment sales grew 5% with improved volume
- North America Foodservice segment sales increased 8%
- Company lowered full-year profit outlook
- Adjusted operating profit now expected to decline 2-4% vs previous guidance of flat to -2%
- International segment operating profit declined to $24M from $35M year-ago
- Timing benefits in Q2 expected to reverse in second half
- Increased promotional spending impacting profit margins
Insights
General Mills' Q2 FY25 results present a mixed picture with some notable timing benefits. Revenue grew
However, the company's updated guidance signals challenges ahead. Management lowered its full-year outlook, now expecting adjusted operating profit to decline
The North America Pet segment showed encouraging signs with
The strategic shift in General Mills' approach is significant, prioritizing volume growth and market share over near-term profitability. The company improved market share performance, growing or maintaining share in
Key operational metrics reveal mixed performance across segments. North America Retail saw retailer inventory benefits from Thanksgiving timing, while Pet segment outpaced retail sales by 4 points due to inventory rebuilds. The International segment's
The increased promotional investment strategy, while pressuring margins, appears necessary in the current consumer environment where value perception is crucial. This tactical adjustment could strengthen competitive positioning but comes at the cost of near-term profitability.
-
Net sales of
were up 2 percent; organic net sales1 increased 1 percent$5.2 billion -
Operating profit of
was up 33 percent; adjusted operating profit of$1.1 billion increased 7 percent in constant currency$1.1 billion -
Diluted earnings per share (EPS) of
was up 39 percent; adjusted diluted EPS of$1.42 increased 12 percent in constant currency$1.40 - Second-quarter results included certain timing benefits that are expected to reverse in the second half
- Company updates full-year fiscal 2025 outlook to reflect increased investment to fund improved volume and market share trends
¹ Please see Note 7 to the Consolidated Financial Statements below for reconciliation of this and other non-GAAP measures used in this release.
“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,” said General Mills Chairman and Chief Executive Officer Jeff Harmening. “To achieve and build on these enterprise-wide gains, we’ve made incremental investments to bring consumers greater value. While these investments lower our profit outlook for fiscal 2025, they better position General Mills for sustainable growth in fiscal 2026 and beyond. Amidst a dynamic external environment, I’m not only confident in our plans, but especially our teams, who are operating with agility and doing what’s right for our consumers.”
Guided by its purpose to make food the world loves, General Mills is executing its Accelerate strategy to drive sustainable, profitable growth and top-tier shareholder returns over the long term. The strategy focuses on four pillars to create competitive advantages and win: boldly building brands, relentlessly innovating, unleashing scale, and standing for good. The company is prioritizing its core markets, global platforms, and local gem brands that have the best prospects for profitable growth and is committed to reshaping its portfolio with strategic acquisitions and divestitures to further enhance its growth profile.
Second Quarter Results Summary
- Results in the quarter were impacted by certain favorable timing items that are expected to reverse in the second half of fiscal 2025. These include an increase in retailer inventory in North America Retail due in part to the Thanksgiving holiday shifting from the final week of the second quarter of fiscal 2024 to the first week of the third quarter of fiscal 2025, as well as favorable trade and other expense timing. These items represented approximately a 1.5-point benefit to net sales and a 6-point benefit to operating profit in the quarter.
-
Net sales increased 2 percent to
, driven by higher pound volume partially offset by unfavorable net price realization and mix. Organic net sales were up 1 percent.$5.2 billion - Gross margin was up 250 basis points to 36.9 percent of net sales, driven primarily by Holistic Margin Management (HMM) cost savings and favorable mark-to-market effects, partially offset by input cost inflation. Adjusted gross margin was up 130 basis points to 36.3 percent of net sales, driven primarily by HMM cost savings, partially offset by input cost inflation and unfavorable net price realization and mix.
-
Operating profit of
was up 33 percent, driven primarily by higher gross profit dollars and a goodwill impairment charge a year ago, partially offset by higher selling, general, and administrative (SG&A) expenses. Operating profit margin of 20.6 percent was up 480 basis points. Adjusted operating profit of$1.1 billion increased 7 percent in constant currency, driven by higher adjusted gross profit dollars, partially offset by higher adjusted SG&A expenses. Adjusted operating profit margin was up 100 basis points to 20.3 percent.$1.1 billion -
Net earnings attributable to General Mills of
were up 34 percent and diluted EPS was up 39 percent to$796 million , driven primarily by higher operating profit and lower net shares outstanding, partially offset by a higher effective tax rate. Adjusted diluted EPS of$1.42 was up 12 percent in constant currency, driven primarily by higher adjusted operating profit, lower net shares outstanding, and a lower adjusted effective tax rate.$1.40
Six Month Results Summary
-
Net sales of
essentially matched year-ago results, with higher pound volume offset by unfavorable net price realization and mix. Organic net sales were also essentially in line with year-ago results.$10.1 billion - Gross margin and adjusted gross margin were each up 70 basis points to 35.9 percent of net sales, driven primarily by HMM cost savings, partially offset by input cost inflation.
-
Operating profit of
was up 10 percent, driven primarily by a goodwill impairment charge a year ago and higher gross profit dollars this year, partially offset by higher SG&A expenses. Operating profit margin of 18.9 percent was up 160 basis points. Adjusted operating profit of$1.9 billion increased 2 percent in constant currency, driven by higher adjusted gross profit dollars, partially offset by higher adjusted SG&A expenses. Adjusted operating profit margin was up 30 basis points to 19.1 percent.$1.9 billion -
Net earnings attributable to General Mills of
were up 8 percent and diluted EPS was up 13 percent to$1.4 billion , driven primarily by higher operating profit and lower net shares outstanding, partially offset by a higher effective tax rate. Adjusted diluted EPS of$2.45 was up 6 percent in constant currency, driven primarily by higher adjusted operating profit and lower net shares outstanding.$2.47
Operating Segment Results
- The acquisition of the Edgard & Cooper pet food business in the fourth quarter of fiscal 2024 impacted the comparability of second-quarter and year-to-date International segment operating results between fiscal 2024 and fiscal 2025.
- Tables may not foot due to rounding.
Components of Fiscal 2025 Reported Net Sales Growth |
||||
Second Quarter |
Volume |
Price/Mix |
Foreign Exchange |
Reported Net Sales |
North America Retail |
(1) pt |
1 pt |
-- |
Flat |
North America Pet |
9 pts |
(5) pts |
-- |
|
North America Foodservice |
5 pts |
3 pts |
-- |
|
International |
5 pts |
(4) pts |
-- |
|
Total |
3 pts |
(1) pt |
-- |
|
|
|
|
|
|
Six Months |
|
|
|
|
North America Retail |
(2) pts |
1 pt |
-- |
(1)% |
North America Pet |
6 pts |
(4) pts |
-- |
|
North America Foodservice |
3 pts |
1 pt |
-- |
|
International |
6 pts |
(5) pts |
(1) pt |
|
Total |
1 pt |
(1) pt |
-- |
Flat |
Components of Fiscal 2025 Organic Net Sales Growth |
||||||
Second Quarter |
Organic Volume |
Organic Price/Mix |
Organic Net Sales |
Foreign Exchange |
Acquisitions & Divestitures |
Reported Net Sales |
North America Retail |
(1) pt |
1 pt |
|
-- |
-- |
Flat |
North America Pet |
9 pts |
(5) pts |
|
-- |
-- |
|
North America Foodservice |
5 pts |
3 pts |
|
-- |
-- |
|
International |
3 pts |
(5) pts |
(3)% |
-- |
4 pts |
|
Total |
2 pts |
(1) pt |
|
-- |
-- |
|
|
|
|
|
|
|
|
Six Months |
|
|
|
|
|
|
North America Retail |
(2) pts |
1 pt |
Flat |
-- |
-- |
(1)% |
North America Pet |
6 pts |
(4) pts |
|
-- |
-- |
|
North America Foodservice |
3 pts |
1 pt |
|
-- |
-- |
|
International |
4 pts |
(6) pts |
(2)% |
(1) pt |
3 pts |
|
Total |
1 pt |
(1) pt |
Flat |
-- |
-- |
Flat |
Fiscal 2025 Segment Operating Profit Growth |
||
Second Quarter |
% Change as Reported |
% Change in Constant Currency |
North America Retail |
Flat |
Flat |
North America Pet |
|
|
North America Foodservice |
|
|
International |
(31)% |
(45)% |
Total |
|
|
|
|
|
Six Months |
|
|
North America Retail |
(3)% |
(3)% |
North America Pet |
|
|
North America Foodservice |
|
|
International |
(47)% |
(56)% |
Total |
Flat |
(1)% |
North America Retail Segment
Second-quarter net sales for General Mills’ North America Retail segment of
Through six months, North America Retail segment net sales were down 1 percent to
North America Pet Segment
Second-quarter net sales for the North America Pet segment were up 5 percent to
Through six months, North America Pet segment net sales were up 2 percent to
North America Foodservice Segment
Second-quarter net sales for the North America Foodservice segment were up 8 percent to
Through six months, North America Foodservice net sales increased 4 percent to
International Segment
Second-quarter net sales for the International segment increased 1 percent to
Through six months, International net sales increased 1 percent to
Joint Venture Summary
Second-quarter constant-currency net sales increased 2 percent for Cereal Partners Worldwide (CPW) and were up 1 percent for Häagen-Dazs Japan (HDJ). Combined after-tax earnings from joint ventures were up 24 percent to
Other Income Statement Items
Second-quarter unallocated corporate items totaled
Restructuring, impairment, and other exit costs totaled
Net interest expense totaled
Cash Flow Generation and Cash Returns
Cash provided by operating activities totaled
Fiscal 2025 Outlook
Amid an uncertain macroeconomic backdrop for consumers across its core markets, General Mills is focused on delivering remarkable experiences across its leading food brands, resulting in sustainable improvement in volume growth and market share trends over time. Through the first six months of fiscal 2025, General Mills generated 1 percent growth in organic pound volume, which represented a 4-point improvement versus its fiscal 2024 performance. Additionally, it grew or maintained dollar market share in 38 percent of its priority businesses in the second quarter, which represented a significant improvement from fiscal 2024 levels. To support these improvements, the company has added targeted promotional investment – above its original plans – in certain priority categories to deliver greater value for consumers, while continuing to invest in brand building above fiscal 2024 levels.
Based on the above assumptions, the company updated its full-year fiscal 2025 financial targets²:
- Organic net sales are still expected to range between flat and up 1 percent, with the company now targeting the lower end of the range due to increased promotional investment. Organic net sales results in the second half are expected to include a 1-point headwind from the reversal of timing-related benefits in the second quarter.
- Adjusted operating profit is now expected to range between down 4 percent and down 2 percent in constant currency, compared to the previous range of between down 2 percent and flat in constant currency, reflecting higher investment levels. Adjusted operating profit results in the second half are expected to include a 3-point headwind from the reversal of timing-related benefits in the second quarter, a 3-point headwind from incremental growth investments, and a 2-point headwind from a partial reset of incentive compensation.
- Adjusted diluted EPS is now expected to range between down 3 percent and down 1 percent in constant currency, compared to the previous range of between down 1 percent and up 1 percent in constant currency.
- Free cash flow conversion is still expected to be at least 95 percent of adjusted after-tax earnings.
- These targets do not reflect an impact from the proposed North American Yogurt divestitures nor the acquisition of Whitebridge Pet Brands’ North American portfolio. The company expects to incorporate these transactions into its outlook after they are closed.
² Financial targets are provided on a non-GAAP basis because certain information necessary to calculate comparable GAAP measures is not available. Please see Note 7 to the Consolidated Financial Statements below for discussion of the unavailable information.
General Mills will issue pre-recorded management remarks today, December 18, 2024, at approximately 6:30 a.m. Central time (7:30 a.m. Eastern time) and will hold a live, webcasted question and answer session beginning at 8:00 a.m. Central time (9:00 a.m. Eastern time). The pre-recorded remarks and the webcast will be made available at www.generalmills.com/investors.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our current expectations and assumptions. These forward-looking statements, including the statements under the caption “Fiscal 2025 Outlook,” and statements made by Mr. Harmening, are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. In particular, our predictions about future net sales and earnings could be affected by a variety of factors, including: disruptions or inefficiencies in the supply chain; competitive dynamics in the consumer foods industry and the markets for our products, including new product introductions, advertising activities, pricing actions, and promotional activities of our competitors; economic conditions, including changes in inflation rates, interest rates, tax rates, or the availability of capital; product development and innovation; consumer acceptance of new products and product improvements; consumer reaction to pricing actions and changes in promotion levels; acquisitions or dispositions of businesses or assets; changes in capital structure; changes in the legal and regulatory environment, including tax legislation, labeling and advertising regulations, and litigation; impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets, or changes in the useful lives of other intangible assets; changes in accounting standards and the impact of critical accounting estimates; product quality and safety issues, including recalls and product liability; changes in consumer demand for our products; effectiveness of advertising, marketing, and promotional programs; changes in consumer behavior, trends, and preferences, including weight loss trends; consumer perception of health-related issues, including obesity; consolidation in the retail environment; changes in purchasing and inventory levels of significant customers; fluctuations in the cost and availability of supply chain resources, including raw materials, packaging, energy, and transportation; effectiveness of restructuring and cost saving initiatives; volatility in the market value of derivatives used to manage price risk for certain commodities; benefit plan expenses due to changes in plan asset values and discount rates used to determine plan liabilities; failure or breach of our information technology systems; foreign economic conditions, including currency rate fluctuations; and political unrest in foreign markets and economic uncertainty due to terrorism or war. The company undertakes no obligation to publicly revise any forward-looking statement to reflect any future events or circumstances.
# # #
Consolidated Statements of Earnings and Supplementary Information |
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GENERAL MILLS, INC. AND SUBSIDIARIES |
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(Unaudited) (In Millions, Except per Share Data) |
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Quarter Ended |
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Six-Month Period Ended |
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Nov. 24, |
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Nov. 26, |
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Nov. 24, |
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Nov. 26, |
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||||||||||
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||||||||
Net sales |
$ |
5,240.1 |
|
|
$ |
5,139.4 |
|
|
2 |
|
% |
|
$ |
10,088.2 |
|
|
$ |
10,044.1 |
|
|
Flat |
|
|
Cost of sales |
|
3,309.0 |
|
|
|
3,373.5 |
|
|
(2 |
) |
% |
|
|
6,468.3 |
|
|
|
6,507.7 |
|
|
(1 |
) |
% |
Selling, general, and administrative expenses |
|
852.0 |
|
|
|
830.5 |
|
|
3 |
|
% |
|
|
1,707.1 |
|
|
|
1,669.8 |
|
|
2 |
|
% |
Restructuring, impairment, and other exit costs |
|
1.2 |
|
|
|
123.6 |
|
|
(99 |
) |
% |
|
|
3.4 |
|
|
|
124.8 |
|
|
(97 |
) |
% |
Operating profit |
|
1,077.9 |
|
|
|
811.8 |
|
|
33 |
|
% |
|
|
1,909.4 |
|
|
|
1,741.8 |
|
|
10 |
|
% |
Benefit plan non-service income |
|
(13.8 |
) |
|
|
(20.1 |
) |
|
(31 |
) |
% |
|
|
(27.7 |
) |
|
|
(37.1 |
) |
|
(25 |
) |
% |
Interest, net |
|
124.6 |
|
|
|
117.8 |
|
|
6 |
|
% |
|
|
248.2 |
|
|
|
234.8 |
|
|
6 |
|
% |
Earnings before income taxes and after-tax earnings from joint ventures |
|
967.1 |
|
|
|
714.1 |
|
|
35 |
|
% |
|
|
1,688.9 |
|
|
|
1,544.1 |
|
|
9 |
|
% |
Income taxes |
|
194.8 |
|
|
|
136.0 |
|
|
43 |
|
% |
|
|
352.2 |
|
|
|
309.2 |
|
|
14 |
|
% |
After-tax earnings from joint ventures |
|
30.0 |
|
|
|
24.2 |
|
|
24 |
|
% |
|
|
49.2 |
|
|
|
47.7 |
|
|
3 |
|
% |
Net earnings, including earnings attributable to noncontrolling interests |
|
802.3 |
|
|
|
602.3 |
|
|
33 |
|
% |
|
|
1,385.9 |
|
|
|
1,282.6 |
|
|
8 |
|
% |
Net earnings attributable to noncontrolling interests |
|
6.6 |
|
|
|
6.8 |
|
|
(3 |
) |
% |
|
|
10.3 |
|
|
|
13.6 |
|
|
(24 |
) |
% |
Net earnings attributable to General Mills |
$ |
795.7 |
|
|
$ |
595.5 |
|
|
34 |
|
% |
|
$ |
1,375.6 |
|
|
$ |
1,269.0 |
|
|
8 |
|
% |
Earnings per share – basic |
$ |
1.43 |
|
|
$ |
1.03 |
|
|
39 |
|
% |
|
$ |
2.46 |
|
|
$ |
2.18 |
|
|
13 |
|
% |
Earnings per share – diluted |
$ |
1.42 |
|
|
$ |
1.02 |
|
|
39 |
|
% |
|
$ |
2.45 |
|
|
$ |
2.16 |
|
|
13 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Quarter Ended |
|
|
Six-Month Period Ended |
||||||||||||||||||
|
|
Nov. 24, |
|
Nov. 26, |
|
Basis Pt |
|
|
Nov. 24, |
|
Nov. 26, |
|
Basis Pt |
||||||||||
Comparisons as a % of net sales: |
|
2024 |
|
2023 |
|
Change |
|
|
2024 |
|
2023 |
|
Change |
||||||||||
Gross margin |
|
36.9 |
% |
|
|
34.4 |
% |
|
250 |
|
|
|
|
35.9 |
% |
|
|
35.2 |
% |
|
70 |
|
|
Selling, general, and administrative expenses |
|
16.3 |
% |
|
|
16.2 |
% |
|
10 |
|
|
|
|
16.9 |
% |
|
|
16.6 |
% |
|
30 |
|
|
Operating profit |
|
20.6 |
% |
|
|
15.8 |
% |
|
480 |
|
|
|
|
18.9 |
% |
|
|
17.3 |
% |
|
160 |
|
|
Net earnings attributable to General Mills |
|
15.2 |
% |
|
|
11.6 |
% |
|
360 |
|
|
|
|
13.6 |
% |
|
|
12.6 |
% |
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Quarter Ended |
|
|
Six-Month Period Ended |
||||||||||||||||||
Comparisons as a % of net sales excluding |
|
Nov. 24, |
|
Nov. 26, |
|
Basis Pt |
|
|
Nov. 24, |
|
|
Nov. 26, |
|
Basis Pt |
|||||||||
certain items affecting comparability (a): |
|
2024 |
|
2023 |
|
Change |
|
|
2024 |
|
|
2023 |
|
Change |
|||||||||
Adjusted gross margin |
|
36.3 |
% |
|
|
35.0 |
% |
|
130 |
|
|
|
|
35.9 |
% |
|
|
35.2 |
% |
|
70 |
|
|
Adjusted operating profit |
|
20.3 |
% |
|
|
19.3 |
% |
|
100 |
|
|
|
|
19.1 |
% |
|
|
18.8 |
% |
|
30 |
|
|
Adjusted net earnings attributable to General Mills |
|
15.0 |
% |
|
|
14.1 |
% |
|
90 |
|
|
|
|
13.8 |
% |
|
|
13.7 |
% |
|
10 |
|
|
(a) See Note 7 for a reconciliation of these measures not defined by generally accepted accounting principles (GAAP). |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
See accompanying notes to consolidated financial statements. |
Operating Segment Results and Supplementary Information |
|||||||||||||||||||||||
GENERAL MILLS, INC. AND SUBSIDIARIES |
|||||||||||||||||||||||
(Unaudited) (In Millions) |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Quarter Ended |
|
|
Six-Month Period Ended |
||||||||||||||||||
|
Nov. 24, 2024 |
|
Nov. 26, 2023 |
|
% Change |
|
|
Nov. 24, 2024 |
|
|
Nov. 26, 2023 |
|
% Change |
||||||||||
Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America Retail |
$ |
3,321.5 |
|
|
$ |
3,305.0 |
|
|
Flat |
|
|
$ |
6,338.1 |
|
|
$ |
6,378.0 |
|
|
(1 |
) |
% |
|
International |
|
690.6 |
|
|
|
683.1 |
|
|
1 |
|
% |
|
|
1,407.6 |
|
|
|
1,398.9 |
|
|
1 |
|
% |
North America Pet |
|
595.8 |
|
|
|
569.3 |
|
|
5 |
|
% |
|
|
1,171.9 |
|
|
|
1,149.2 |
|
|
2 |
|
% |
North America Foodservice |
|
630.0 |
|
|
|
582.0 |
|
|
8 |
|
% |
|
|
1,166.2 |
|
|
|
1,118.0 |
|
|
4 |
|
% |
Total segment net sales |
$ |
5,237.9 |
|
|
$ |
5,139.4 |
|
|
2 |
|
% |
|
$ |
10,083.8 |
|
|
$ |
10,044.1 |
|
|
Flat |
|
|
Corporate and other |
|
2.2 |
|
|
|
- |
|
|
NM |
|
|
|
|
4.4 |
|
|
|
- |
|
|
NM |
|
|
Total net sales |
$ |
5,240.1 |
|
|
$ |
5,139.4 |
|
|
2 |
|
% |
|
$ |
10,088.2 |
|
|
$ |
10,044.1 |
|
|
Flat |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America Retail |
$ |
862.3 |
|
|
$ |
859.9 |
|
|
Flat |
|
|
$ |
1,608.0 |
|
|
$ |
1,658.1 |
|
|
(3 |
) |
% |
|
International |
|
23.8 |
|
|
|
34.6 |
|
|
(31 |
) |
% |
|
|
44.7 |
|
|
|
84.6 |
|
|
(47 |
) |
% |
North America Pet |
|
139.3 |
|
|
|
102.5 |
|
|
36 |
|
% |
|
|
258.7 |
|
|
|
213.7 |
|
|
21 |
|
% |
North America Foodservice |
|
118.5 |
|
|
|
95.5 |
|
|
24 |
|
% |
|
|
190.0 |
|
|
|
154.6 |
|
|
23 |
|
% |
Total segment operating profit |
$ |
1,143.9 |
|
|
$ |
1,092.5 |
|
|
5 |
|
% |
|
$ |
2,101.4 |
|
|
$ |
2,111.0 |
|
|
Flat |
|
|
Unallocated corporate items |
|
64.8 |
|
|
|
157.1 |
|
|
(59 |
) |
% |
|
|
188.6 |
|
|
|
244.4 |
|
|
(23 |
) |
% |
Restructuring, impairment, and other exit costs |
|
1.2 |
|
|
|
123.6 |
|
|
(99 |
) |
% |
|
|
3.4 |
|
|
|
124.8 |
|
|
(97 |
) |
% |
Operating profit |
$ |
1,077.9 |
|
|
$ |
811.8 |
|
|
33 |
|
% |
|
$ |
1,909.4 |
|
|
$ |
1,741.8 |
|
|
10 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Quarter Ended |
|
|
Six-Month Period Ended |
||||||||||||||||||
|
|
Nov. 24, 2024 |
|
|
Nov. 26, 2023 |
|
Basis Pt Change |
|
|
|
Nov. 24, 2024 |
|
|
Nov. 26, 2023 |
|
Basis Pt Change |
|
||||||
Segment operating profit as a % of net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America Retail |
|
26.0 |
% |
|
|
26.0 |
% |
|
Flat |
|
|
|
25.4 |
% |
|
|
26.0 |
% |
|
(60 |
) |
|
|
International |
|
3.4 |
% |
|
|
5.1 |
% |
|
(170 |
) |
|
|
|
3.2 |
% |
|
|
6.0 |
% |
|
(280 |
) |
|
North America Pet |
|
23.4 |
% |
|
|
18.0 |
% |
|
540 |
|
|
|
|
22.1 |
% |
|
|
18.6 |
% |
|
350 |
|
|
North America Foodservice |
|
18.8 |
% |
|
|
16.4 |
% |
|
240 |
|
|
|
|
16.3 |
% |
|
|
13.8 |
% |
|
250 |
|
|
Total segment operating profit |
|
21.8 |
% |
|
|
21.3 |
% |
|
50 |
|
|
|
|
20.8 |
% |
|
|
21.0 |
% |
|
(20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
See accompanying notes to consolidated financial statements. |
Consolidated Balance Sheets |
|||||||||||
GENERAL MILLS, INC. AND SUBSIDIARIES |
|||||||||||
(In Millions, Except Par Value) |
|||||||||||
|
|
|
|
|
|
|
|
|
|||
|
Nov. 24, 2024 |
|
Nov. 26, 2023 |
|
May 26, 2024 |
||||||
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|||||
ASSETS |
|
|
|
|
|
|
|
|
|||
Current assets: |
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
$ |
2,292.8 |
|
|
$ |
593.8 |
|
|
$ |
418.0 |
|
Receivables |
|
1,781.9 |
|
|
|
1,758.8 |
|
|
|
1,696.2 |
|
Inventories |
|
1,967.9 |
|
|
|
2,166.0 |
|
|
|
1,898.2 |
|
Prepaid expenses and other current assets |
|
458.0 |
|
|
|
527.0 |
|
|
|
568.5 |
|
Assets held for sale |
|
880.8 |
|
|
|
- |
|
|
|
- |
|
Total current assets |
|
7,381.4 |
|
|
|
5,045.6 |
|
|
|
4,580.9 |
|
Land, buildings, and equipment |
|
3,457.0 |
|
|
|
3,598.9 |
|
|
|
3,863.9 |
|
Goodwill |
|
14,427.7 |
|
|
|
14,441.8 |
|
|
|
14,750.7 |
|
Other intangible assets |
|
6,743.3 |
|
|
|
6,963.3 |
|
|
|
6,979.9 |
|
Other assets |
|
1,386.7 |
|
|
|
1,183.8 |
|
|
|
1,294.5 |
|
Total assets |
$ |
33,396.1 |
|
|
$ |
31,233.4 |
|
|
$ |
31,469.9 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|
|
|
|
|||
Accounts payable |
$ |
4,068.8 |
|
|
$ |
3,824.4 |
|
|
$ |
3,987.8 |
|
Current portion of long-term debt |
|
1,821.5 |
|
|
|
1,321.0 |
|
|
|
1,614.1 |
|
Notes payable |
|
264.3 |
|
|
|
799.2 |
|
|
|
11.8 |
|
Other current liabilities |
|
1,804.5 |
|
|
|
1,957.6 |
|
|
|
1,419.4 |
|
Liabilities held for sale |
|
65.2 |
|
|
|
- |
|
|
|
- |
|
Total current liabilities |
|
8,024.3 |
|
|
|
7,902.2 |
|
|
|
7,033.1 |
|
Long-term debt |
|
12,435.8 |
|
|
|
10,530.5 |
|
|
|
11,304.2 |
|
Deferred income taxes |
|
2,232.9 |
|
|
|
2,026.6 |
|
|
|
2,200.6 |
|
Other liabilities |
|
1,253.9 |
|
|
|
1,142.2 |
|
|
|
1,283.5 |
|
Total liabilities |
|
23,946.9 |
|
|
|
21,601.5 |
|
|
|
21,821.4 |
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|||
Common stock, 754.6 shares issued, |
|
75.5 |
|
|
|
75.5 |
|
|
|
75.5 |
|
Additional paid-in capital |
|
1,182.0 |
|
|
|
1,201.8 |
|
|
|
1,227.0 |
|
Retained earnings |
|
21,340.3 |
|
|
|
20,080.9 |
|
|
|
20,971.8 |
|
Common stock in treasury, at cost, shares of 202.4, 185.7, and 195.5 |
|
(10,873.3 |
) |
|
|
(9,677.4 |
) |
|
|
(10,357.9 |
) |
Accumulated other comprehensive loss |
|
(2,523.8 |
) |
|
|
(2,302.0 |
) |
|
|
(2,519.7 |
) |
Total stockholders’ equity |
|
9,200.7 |
|
|
|
9,378.8 |
|
|
|
9,396.7 |
|
Noncontrolling interests |
|
248.5 |
|
|
|
253.1 |
|
|
|
251.8 |
|
Total equity |
|
9,449.2 |
|
|
|
9,631.9 |
|
|
|
9,648.5 |
|
Total liabilities and equity |
$ |
33,396.1 |
|
|
$ |
31,233.4 |
|
|
$ |
31,469.9 |
|
|
|
|
|
|
|
|
|
|
|||
See accompanying notes to consolidated financial statements. |
|
|
|
|
|
|
||
Consolidated Statements of Cash Flows |
|||||||
GENERAL MILLS, INC. AND SUBSIDIARIES |
|||||||
(Unaudited) (In Millions) |
|||||||
|
Six-Month Period Ended |
||||||
|
Nov. 24, 2024 |
|
Nov. 26, 2023 |
||||
Cash Flows - Operating Activities |
|
|
|
|
|
||
Net earnings, including earnings attributable to noncontrolling interests |
$ |
1,385.9 |
|
|
$ |
1,282.6 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
||
Depreciation and amortization |
|
269.1 |
|
|
|
265.8 |
|
After-tax earnings from joint ventures |
|
(49.2 |
) |
|
|
(47.7 |
) |
Distributions of earnings from joint ventures |
|
23.1 |
|
|
|
23.5 |
|
Stock-based compensation |
|
46.6 |
|
|
|
58.5 |
|
Deferred income taxes |
|
(11.5 |
) |
|
|
(58.7 |
) |
Pension and other postretirement benefit plan contributions |
|
(15.2 |
) |
|
|
(12.5 |
) |
Pension and other postretirement benefit plan costs |
|
(6.5 |
) |
|
|
(13.5 |
) |
Restructuring, impairment, and other exit costs |
|
(0.9 |
) |
|
|
123.1 |
|
Changes in current assets and liabilities, excluding the effects of acquisitions and divestitures |
|
172.3 |
|
|
|
(166.1 |
) |
Other, net |
|
(39.0 |
) |
|
|
40.8 |
|
Net cash provided by operating activities |
|
1,774.7 |
|
|
|
1,495.8 |
|
Cash Flows - Investing Activities |
|
|
|
|
|
||
Purchases of land, buildings, and equipment |
|
(301.2 |
) |
|
|
(293.9 |
) |
Acquisition, net of cash acquired |
|
(7.7 |
) |
|
|
(25.5 |
) |
Investments in affiliates, net |
|
6.6 |
|
|
|
(1.5 |
) |
Proceeds from disposal of land, buildings, and equipment |
|
0.9 |
|
|
|
0.1 |
|
Other, net |
|
(4.5 |
) |
|
|
4.6 |
|
Net cash used by investing activities |
|
(305.9 |
) |
|
|
(316.2 |
) |
Cash Flows - Financing Activities |
|
|
|
|
|
||
Change in notes payable |
|
254.3 |
|
|
|
766.9 |
|
Issuance of long-term debt |
|
1,500.0 |
|
|
|
500.0 |
|
Payment of long-term debt |
|
- |
|
|
|
(400.0 |
) |
Proceeds from common stock issued on exercised options |
|
33.8 |
|
|
|
5.7 |
|
Purchases of common stock for treasury |
|
(600.4 |
) |
|
|
(1,301.4 |
) |
Dividends paid |
|
(675.8 |
) |
|
|
(691.0 |
) |
Distributions to noncontrolling interest holders |
|
(12.8 |
) |
|
|
(12.0 |
) |
Other, net |
|
(77.0 |
) |
|
|
(41.8 |
) |
Net cash provided (used) by financing activities |
|
422.1 |
|
|
|
(1,173.6 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(16.1 |
) |
|
|
2.3 |
|
Increase in cash and cash equivalents |
|
1,874.8 |
|
|
|
8.3 |
|
Cash and cash equivalents - beginning of year |
|
418.0 |
|
|
|
585.5 |
|
Cash and cash equivalents - end of period |
$ |
2,292.8 |
|
|
$ |
593.8 |
|
Cash Flows from changes in current assets and liabilities, excluding the effects of acquisitions and divestitures: |
|
|
|
|
|
||
Receivables |
$ |
(109.3 |
) |
|
$ |
(69.2 |
) |
Inventories |
|
(169.5 |
) |
|
|
13.8 |
|
Prepaid expenses and other current assets |
|
83.4 |
|
|
|
209.0 |
|
Accounts payable |
|
266.4 |
|
|
|
(329.1 |
) |
Other current liabilities |
|
101.3 |
|
|
|
9.4 |
|
Changes in current assets and liabilities |
$ |
172.3 |
|
|
$ |
(166.1 |
) |
|
|
|
|
|
|
||
See accompanying notes to consolidated financial statements. |
GENERAL MILLS, INC. AND SUBSIDIARIES |
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
|
(Unaudited) |
|
(1) |
The accompanying Consolidated Financial Statements of General Mills, Inc. (we, us, our, General Mills, or the Company) have been prepared in accordance with accounting principles generally accepted in |
|
|
(2) |
During the second quarter of fiscal 2025, we entered into a definitive agreement to acquire NX Pet Holding, Inc., representing Whitebridge Pet Brands’ |
|
|
|
During the second quarter of fiscal 2025, we entered into definitive agreements to sell our North American yogurt businesses to affiliates of Group Lactalis S.A. (Lactalis) and Sodiaal International (Sodiaal) for approximately |
|
|
|
During the fourth quarter of fiscal 2024, we acquired a pet food business in |
|
|
(3) |
Restructuring and impairment charges and project-related costs are recorded in our Consolidated Statement of Earnings as follows: |
|
|
Quarter Ended |
|
Six-Month Period Ended |
||||||||
|
In Millions |
Nov. 24, 2024 |
|
Nov. 26, 2023 |
|
Nov. 24, 2024 |
|
Nov. 26, 2023 |
||||
|
Restructuring, impairment, and other exit costs |
$ |
1.2 |
|
$ |
123.6 |
|
$ |
3.4 |
|
$ |
124.8 |
|
Cost of sales |
|
0.1 |
|
|
8.3 |
|
|
0.8 |
|
|
16.9 |
|
Total restructuring and impairment charges |
$ |
1.3 |
|
$ |
131.9 |
|
$ |
4.2 |
|
$ |
141.7 |
|
Project-related costs classified in cost of sales |
$ |
0.1 |
|
$ |
0.3 |
|
$ |
0.2 |
|
$ |
1.1 |
In the six-month period ended November 24, 2024, we did not undertake any new restructuring actions. We recorded |
|
|
|
In the second quarter of fiscal 2024, we recorded a |
|
|
|
(4) |
Unallocated corporate expenses totaled |
|
|
Unallocated corporate expenses totaled |
|
|
|
(5) |
Basic and diluted earnings per share (EPS) were calculated as follows: |
|
|
Quarter Ended |
Six-Month Period Ended |
|||||||||
|
In Millions, Except per Share Data |
Nov. 24, 2024 |
|
Nov. 26, 2023 |
Nov. 24, 2024 |
|
Nov. 26, 2023 |
|||||
|
Net earnings attributable to General Mills |
$ |
795.7 |
|
$ |
595.5 |
$ |
1,375.6 |
|
$ |
1,269.0 |
|
|
Average number of common shares – basic EPS |
|
556.9 |
|
|
580.1 |
|
558.7 |
|
|
583.2 |
|
|
Incremental share effect from: (a) |
|
|
|
|
|
|
|
|
|
|
|
|
Stock options |
|
1.9 |
|
|
1.4 |
|
1.7 |
|
|
2.1 |
|
|
Restricted stock units and performance share units |
|
1.6 |
|
|
1.9 |
|
1.8 |
|
|
2.1 |
|
|
Average number of common shares – diluted EPS |
|
560.4 |
|
|
583.4 |
|
562.2 |
|
|
587.4 |
|
|
Earnings per share – basic |
$ |
1.43 |
|
$ |
1.03 |
$ |
2.46 |
|
$ |
2.18 |
|
|
Earnings per share – diluted |
$ |
1.42 |
|
$ |
1.02 |
$ |
2.45 |
|
$ |
2.16 |
|
(a) Incremental shares from stock options, restricted stock units, and performance share units are computed by the treasury stock method. |
(6) |
The effective tax rate for the second quarter of fiscal 2025 was 20.1 percent compared to 19.0 percent for the second quarter of fiscal 2024. The 1.1 percentage point increase was primarily due to certain nonrecurring discrete tax benefits in the second quarter of fiscal 2024, partially offset by favorable earnings mix by jurisdiction in the second quarter of fiscal 2025. Our effective tax rate excluding certain items affecting comparability was 20.1 percent in the second quarter of fiscal 2025, compared to 20.8 percent in the same period last year (see Note 7 below for a description of our use of measures not defined by GAAP). The 0.7 percentage point decrease was primarily due to favorable earnings mix by jurisdiction in the second quarter of fiscal 2025. |
|
|
The effective tax rate of the six-month period ended November 24, 2024, was 20.9 percent compared to 20.0 percent for the six-month period ended November 26, 2023. The 0.9 percentage point increase was primarily due to certain nonrecurring discrete tax benefits in fiscal 2024, partially offset by favorable earnings mix by jurisdiction in fiscal 2025. Our effective tax rate excluding certain items affecting comparability was 20.9 percent in the six-month period ended November 24, 2024, compared to 21.0 percent in the same period last year (see Note 7 below for a description of our use of measures not defined by GAAP). The 0.1 percentage point decrease was primarily due to favorable earnings mix by jurisdiction in fiscal 2025, partially offset by certain nonrecurring discrete tax benefits in fiscal 2024. |
|
|
|
(7) |
We have included measures in this release that are not defined by GAAP. We believe that these measures provide useful information to investors, and include these measures in other communications to investors. For each of these non-GAAP financial measures, we are providing below a reconciliation of the differences between the non-GAAP measure and the most directly comparable GAAP measure, an explanation of why we believe the non-GAAP measure provides useful information to investors, and any additional material purposes for which our management or Board of Directors uses the non-GAAP measure. These non-GAAP measures should be viewed in addition to, and not in lieu of, the comparable GAAP measure. |
|
|
We provide organic net sales growth rates for our consolidated net sales and segment net sales. This measure is used in reporting to our Board of Directors and executive management and as a component of the Board of Directors’ measurement of our performance for incentive compensation purposes. We believe that organic net sales growth rates provide useful information to investors because they provide transparency to underlying performance in our net sales by excluding the effect that foreign currency exchange rate fluctuations, acquisitions, divestitures, and a 53rd fiscal week, when applicable, have on year-to-year comparability. A reconciliation of these measures to reported net sales growth rates, the relevant GAAP measures, are included in our Operating Segment Results above. |
|
Certain measures in this release are presented excluding the impact of foreign currency exchange (constant-currency). To present this information, current period results for entities reporting in currencies other than |
|
Our fiscal 2025 outlook for organic net sales growth, adjusted operating profit growth, adjusted diluted EPS growth, and free cash flow conversion are non-GAAP financial measures that exclude, or have otherwise been adjusted for, items impacting comparability, including the effect of foreign currency exchange rate fluctuations, acquisitions, divestitures, and a 53rd week, when applicable. We are not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measure without unreasonable efforts because we are unable to predict with a reasonable degree of certainty the actual impact of changes in foreign currency exchange rates and the timing of acquisitions and divestitures throughout fiscal 2025. The unavailable information could have a significant impact on our fiscal 2025 GAAP financial results. |
|
For fiscal 2025, we currently expect: foreign currency exchange rates (based on a blend of forward and forecasted rates and hedge positions) and acquisitions and divestitures will have no material impact to net sales growth and restructuring charges to be immaterial. |
Significant Items Impacting Comparability
Several measures below are presented on an adjusted basis. The adjustments are either items resulting from infrequently occurring events or items that, in management’s judgement, significantly affect the year-to-year assessment of operating results.
The following are descriptions of significant items impacting comparability of our results.
Transaction costs
Fiscal 2025 transaction costs related to the definitive agreement for the Whitebridge Pet Brands acquisition and definitive agreements to sell our North American yogurt businesses. Immaterial transaction costs incurred in fiscal 2024. Please see Note 2.
Restructuring charges and project-related costs
Restructuring charges and project-related costs related to previously announced restructuring actions recorded in fiscal 2025 and fiscal 2024. Please see Note 3.
Acquisition integration costs
Integration costs resulting from the acquisition of a pet food business in
Investment activity, net
Valuation adjustments of certain corporate investments in fiscal 2025 and fiscal 2024. Please see Note 4.
Mark-to-market effects
Net mark-to-market valuation of certain commodity positions recognized in unallocated corporate items. Please see Note 4.
Goodwill impairment
Non-cash goodwill impairment charge related to our
Product recall
Costs related to the fiscal 2023 voluntary recall of certain international Häagen-Dazs ice cream products recorded in fiscal 2024.
CPW restructuring charges
CPW restructuring charges related to previously announced restructuring actions.
Adjusted Operating Profit Growth and Related Constant-currency Growth Rate
This measure is used in reporting to our Board of Directors and executive management and as a component of the measurement of our performance for incentive compensation purposes. We believe that this measure provides useful information to investors because it is the operating profit measure we use to evaluate operating profit performance on a comparable year-to-year basis. The measure is evaluated on a constant-currency basis by excluding the effect that foreign currency exchange rate fluctuations have on year-to-year comparability given the volatility in foreign currency exchange rates.
Our adjusted operating profit growth on a constant-currency basis is calculated as follows:
|
|
Quarter Ended |
|
|
Six-Month Period Ended |
|||||||||||||||
|
Nov. 24, 2024 |
|
Nov. 26, 2023 |
|
Change |
|
Nov. 24, 2024 |
|
Nov. 26, 2023 |
|
Change |
|||||||||
Operating profit as reported |
$ |
1,077.9 |
|
|
$ |
811.8 |
33 |
% |
|
$ |
1,909.4 |
|
|
$ |
1,741.8 |
|
10 |
% |
||
Transaction costs |
|
8.9 |
|
|
|
0.6 |
|
|
|
|
8.9 |
|
|
|
0.6 |
|
|
|
||
Restructuring charges |
|
1.3 |
|
|
|
14.8 |
|
|
|
|
4.2 |
|
|
|
24.6 |
|
|
|
||
Acquisition integration costs |
|
2.3 |
|
|
|
- |
|
|
|
|
3.9 |
|
|
|
0.2 |
|
|
|
||
Investment activity, net |
|
2.8 |
|
|
|
19.6 |
|
|
|
|
3.2 |
|
|
|
22.5 |
|
|
|
||
Mark-to-market effects |
|
(29.4 |
) |
|
|
25.1 |
|
|
|
|
(0.6 |
) |
|
|
(19.8 |
) |
|
|
||
Project-related costs |
|
0.1 |
|
|
|
0.3 |
|
|
|
|
0.2 |
|
|
|
1.1 |
|
|
|
||
Goodwill impairment |
|
- |
|
|
|
117.1 |
|
|
|
|
- |
|
|
|
117.1 |
|
|
|
||
Product recall |
|
- |
|
|
|
0.2 |
|
|
|
|
- |
|
|
|
0.4 |
|
|
|
||
Adjusted operating profit |
$ |
1,064.0 |
|
|
$ |
989.4 |
8 |
% |
|
$ |
1,929.3 |
|
|
$ |
1,888.4 |
|
2 |
% |
||
Foreign currency exchange impact |
|
|
|
|
|
Flat |
|
|
|
|
|
|
Flat |
|
||||||
Adjusted operating profit growth, on a constant-currency basis |
|
|
|
|
|
7 |
% |
|
|
|
|
|
|
2 |
% |
|||||
Note: Table may not foot due to rounding. |
||||||||||||||||||||
For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above. |
Adjusted Diluted EPS and Related Constant-currency Growth Rate
This measure is used in reporting to our Board of Directors and executive management. We believe that this measure provides useful information to investors because it is the profitability measure we use to evaluate earnings performance on a comparable year-to-year basis.
The reconciliation of our GAAP measure, diluted EPS, to adjusted diluted EPS and the related constant-currency growth rates follows:
|
Quarter Ended |
|
Six-Month Period Ended |
||||||||||||||||
Per Share Data |
Nov. 24, 2024 |
|
Nov. 26, 2023 |
|
Change |
|
Nov. 24, 2024 |
|
Nov. 26, 2023 |
|
Change |
||||||||
Diluted earnings per share, as reported |
$ |
1.42 |
|
|
$ |
1.02 |
39 |
% |
|
$ |
2.45 |
|
$ |
2.16 |
|
13 |
% |
||
Transaction costs |
|
0.01 |
|
|
|
- |
|
|
|
0.01 |
|
|
- |
|
|
|
|||
Restructuring charges |
|
0.01 |
|
|
|
0.02 |
|
|
|
0.01 |
|
|
0.03 |
|
|
|
|||
Acquisition integration costs |
|
0.01 |
|
|
|
- |
|
|
|
0.01 |
|
|
- |
|
|
|
|||
Goodwill impairment |
|
- |
|
|
|
0.14 |
|
|
|
- |
|
|
0.14 |
|
|
|
|||
Mark-to-market effects |
|
(0.04 |
) |
|
|
0.03 |
|
|
|
- |
|
|
(0.03 |
) |
|
|
|||
Investment activity, net |
|
- |
|
|
|
0.03 |
|
|
|
- |
|
|
0.03 |
|
|
|
|||
Adjusted diluted earnings per share |
$ |
1.40 |
|
|
$ |
1.25 |
12 |
% |
|
$ |
2.47 |
|
$ |
2.34 |
|
6 |
% |
||
Foreign currency exchange impact |
|
|
|
|
|
Flat |
|
|
|
|
|
Flat |
|
||||||
Adjusted diluted earnings per share growth, on a constant-currency basis |
|
|
|
|
|
12 |
% |
|
|
|
|
|
|
6 |
% |
||||
Note: Table may not foot due to rounding. |
|||||||||||||||||||
For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above. |
See our reconciliation below of the effective income tax rate as reported to the adjusted effective income tax rate for the tax impact of each item affecting comparability.
Adjusted Earnings Comparisons as a Percent of Net Sales
We believe that these measures provide useful information to investors because they are important for assessing our adjusted earnings comparisons as a percent of net sales on a comparable year-to-year basis.
Our adjusted earnings comparisons as a percent of net sales are calculated as follows:
|
Quarter Ended |
||||||||||||
In Millions |
Nov. 24, 2024 |
|
Nov. 26, 2023 |
||||||||||
Comparisons as a % of Net Sales |
|
Value |
|
Percent of Net Sales |
|
|
|
Value |
|
Percent of Net Sales |
|
||
Gross margin as reported (a) |
$ |
1,931.1 |
|
|
36.9 |
|
% |
|
$ |
1,765.9 |
|
34.4 |
% |
Restructuring charges |
|
0.1 |
|
|
- |
|
% |
|
|
8.3 |
|
0.2 |
% |
Mark-to-market effects |
|
(29.4 |
) |
|
(0.6 |
) |
% |
|
|
25.1 |
|
0.5 |
% |
Project-related costs |
|
0.1 |
|
|
- |
|
% |
|
|
0.3 |
|
- |
% |
Adjusted gross margin |
$ |
1,902.0 |
|
|
36.3 |
|
% |
|
$ |
1,799.6 |
|
35.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||
Operating profit as reported |
$ |
1,077.9 |
|
|
20.6 |
|
% |
|
$ |
811.8 |
|
15.8 |
% |
Transaction costs |
|
8.9 |
|
|
0.2 |
|
% |
|
|
0.6 |
|
- |
% |
Restructuring charges |
|
1.3 |
|
|
- |
|
% |
|
|
14.8 |
|
0.3 |
% |
Acquisition integration costs |
|
2.3 |
|
|
- |
|
% |
|
|
- |
|
- |
% |
Investment activity, net |
|
2.8 |
|
|
0.1 |
|
% |
|
|
19.6 |
|
0.4 |
% |
Mark-to-market effects |
|
(29.4 |
) |
|
(0.6 |
) |
% |
|
|
25.1 |
|
0.5 |
% |
Project-related costs |
|
0.1 |
|
|
- |
|
% |
|
|
0.3 |
|
- |
% |
Goodwill impairment |
|
- |
|
|
- |
|
% |
|
|
117.1 |
|
2.3 |
% |
Product recall |
|
- |
|
|
- |
|
% |
|
|
0.2 |
|
- |
% |
Adjusted operating profit |
$ |
1,064.0 |
|
|
20.3 |
|
% |
|
$ |
989.4 |
|
19.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||
Net earnings attributable to General Mills as reported |
$ |
795.7 |
|
|
15.2 |
|
% |
|
$ |
595.5 |
|
11.6 |
% |
Transaction costs, net of tax (b) |
|
6.9 |
|
|
0.1 |
|
% |
|
|
0.6 |
|
- |
% |
Restructuring charges, net of tax (b) |
|
1.0 |
|
|
- |
|
% |
|
|
10.4 |
|
0.2 |
% |
Acquisition integration costs, net of tax (b) |
|
1.8 |
|
|
- |
|
% |
|
|
0.1 |
|
- |
% |
Investment activity, net, net of tax (b) |
|
2.2 |
|
|
- |
|
% |
|
|
15.3 |
|
0.3 |
% |
Mark-to-market effects, net of tax (b) |
|
(22.7 |
) |
|
(0.4 |
) |
% |
|
|
19.3 |
|
0.4 |
% |
CPW restructuring charges |
|
0.1 |
|
|
- |
|
% |
|
|
1.4 |
|
- |
% |
Project-related costs, net of tax (b) |
|
0.1 |
|
|
- |
|
% |
|
|
0.2 |
|
- |
% |
Goodwill impairment, net of tax (b) |
|
- |
|
|
- |
|
% |
|
|
82.4 |
|
1.6 |
% |
Product recall, net of tax (b) |
|
- |
|
|
- |
|
% |
|
|
0.2 |
|
- |
% |
Adjusted net earnings attributable to General Mills |
$ |
785.2 |
|
|
15.0 |
|
% |
|
$ |
725.4 |
|
14.1 |
% |
Note: Table may not foot due to rounding. |
|||||||||||||
For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above. |
|||||||||||||
(a) Net sales less cost of sales. | |||||||||||||
(b) See reconciliation of adjusted effective income tax rate below for tax impact of each adjustment. |
|
Six-Month Period Ended |
|||||||||||||
In Millions |
Nov. 24, 2024 |
|
Nov. 26, 2023 |
|||||||||||
Comparisons as a % of Net Sales |
|
Value |
|
Percent of Net Sales |
|
|
|
Value |
|
Percent of Net Sales |
|
|||
Gross margin as reported (a) |
$ |
3,619.9 |
|
|
35.9 |
% |
|
$ |
3,536.4 |
|
|
35.2 |
|
% |
Restructuring charges |
|
0.8 |
|
|
- |
% |
|
|
16.9 |
|
|
0.2 |
|
% |
Mark-to-market effects |
|
(0.6 |
) |
|
- |
% |
|
|
(19.8 |
) |
|
(0.2 |
) |
% |
Project-related costs |
|
0.2 |
|
|
- |
% |
|
|
1.1 |
|
|
- |
|
% |
Adjusted gross margin |
$ |
3,620.4 |
|
|
35.9 |
% |
|
$ |
3,534.6 |
|
|
35.2 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Operating profit as reported |
$ |
1,909.4 |
|
|
18.9 |
% |
|
$ |
1,741.8 |
|
|
17.3 |
|
% |
Transaction costs |
|
8.9 |
|
|
0.1 |
% |
|
|
0.6 |
|
|
- |
|
% |
Restructuring charges |
|
4.2 |
|
|
- |
% |
|
|
24.6 |
|
|
0.2 |
|
% |
Acquisition integration costs |
|
3.9 |
|
|
- |
% |
|
|
0.2 |
|
|
- |
|
% |
Investment activity, net |
|
3.2 |
|
|
- |
% |
|
|
22.5 |
|
|
0.2 |
|
% |
Mark-to-market effects |
|
(0.6 |
) |
|
- |
% |
|
|
(19.8 |
) |
|
(0.2 |
) |
% |
Project-related costs |
|
0.2 |
|
|
- |
% |
|
|
1.1 |
|
|
- |
|
% |
Goodwill impairment |
|
- |
|
|
- |
% |
|
|
117.1 |
|
|
1.2 |
|
% |
Product recall |
|
- |
|
|
- |
% |
|
|
0.4 |
|
|
- |
|
% |
Adjusted operating profit |
$ |
1,929.3 |
|
|
19.1 |
% |
|
$ |
1,888.4 |
|
|
18.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Net earnings attributable to General Mills as reported |
$ |
1,375.6 |
|
|
13.6 |
% |
|
$ |
1,269.0 |
|
|
12.6 |
|
% |
Transaction costs, net of tax (b) |
|
6.9 |
|
|
0.1 |
% |
|
|
0.6 |
|
|
- |
|
% |
Restructuring charges, net of tax (b) |
|
3.2 |
|
|
- |
% |
|
|
15.5 |
|
|
0.2 |
|
% |
Acquisition integration costs, net of tax (b) |
|
3.0 |
|
|
- |
% |
|
|
0.2 |
|
|
- |
|
% |
Investment activity, net, net of tax (b) |
|
2.5 |
|
|
- |
% |
|
|
17.2 |
|
|
0.2 |
|
% |
Mark-to-market effects, net of tax (b) |
|
(0.5 |
) |
|
- |
% |
|
|
(15.3 |
) |
|
(0.2 |
) |
% |
CPW restructuring charges |
|
0.2 |
|
|
- |
% |
|
|
1.7 |
|
|
- |
|
% |
Project-related costs, net of tax (b) |
|
0.2 |
|
|
- |
% |
|
|
0.7 |
|
|
- |
|
% |
Goodwill impairment, net of tax (b) |
|
- |
|
|
- |
% |
|
|
82.4 |
|
|
0.8 |
|
% |
Product recall, net of tax (b) |
|
- |
|
|
- |
% |
|
|
0.3 |
|
|
- |
|
% |
Adjusted net earnings attributable to General Mills |
$ |
1,391.1 |
|
|
13.8 |
% |
|
$ |
1,372.4 |
|
|
13.7 |
|
% |
Note: Table may not foot due to rounding. |
||||||||||||||
For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above. |
||||||||||||||
(a) Net sales less cost of sales. |
||||||||||||||
(b) See reconciliation of adjusted effective income tax rate below for tax impact of each adjustment. |
Constant-currency Segment Operating Profit Growth Rates
We believe that this measure provides useful information to investors because it provides transparency to underlying performance of our segments by excluding the effect that foreign currency exchange rate fluctuations have on year-to-year comparability given volatility in foreign currency exchange markets.
Our segments’ operating profit growth rates on a constant-currency basis are calculated as follows:
|
|
Quarter Ended Nov. 24, 2024 |
|||||||
|
|
Percentage Change in Operating Profit as Reported |
Impact of Foreign Currency Exchange |
Percentage Change in Operating Profit on Constant-Currency Basis |
|||||
North America Retail |
|
Flat |
|
Flat |
|
Flat |
|
||
International |
|
(31 |
) |
% |
14 |
pts |
(45 |
) |
% |
North America Pet |
|
36 |
|
% |
Flat |
|
36 |
|
% |
North America Foodservice |
|
24 |
|
% |
Flat |
|
24 |
|
% |
Total segment operating profit |
|
5 |
|
% |
Flat |
|
4 |
|
% |
|
|
||||||||
|
|
Six-Month Period Ended Nov. 24, 2024 |
|||||||
|
|
Percentage Change in Operating Profit as Reported |
Impact of Foreign Currency Exchange |
Percentage Change in Operating Profit on Constant-Currency Basis |
|||||
North America Retail |
|
(3 |
) |
% |
Flat |
|
(3 |
) |
% |
International |
|
(47 |
) |
% |
9 |
pts |
(56 |
) |
% |
North America Pet |
|
21 |
|
% |
Flat |
|
21 |
|
% |
North America Foodservice |
|
23 |
|
% |
Flat |
|
23 |
|
% |
Total segment operating profit |
|
Flat |
|
Flat |
|
(1 |
) |
% |
|
Note: Table may not foot due to rounding. |
Net Sales Growth Rates for our Canada Operating Unit on a Constant-currency Basis
We believe that this measure of our
Net sales growth rates for our
|
|
Percentage Change in Net Sales as Reported |
Impact of Foreign Currency Exchange |
Percentage Change in Net Sales on Constant- Currency Basis |
||||||
Quarter Ended Nov. 24, 2024 |
|
(4 |
) |
% |
Flat |
|
(4 |
) |
% |
|
Six-Month Period Ended Nov. 24, 2024 |
|
(1 |
) |
% |
(2 |
) |
pts |
1 |
|
% |
Note: Table may not foot due to rounding. |
Adjusted Effective Income Tax Rate
We believe this measure provides useful information to investors because it presents the adjusted effective income tax rate on a comparable year-to-year basis.
Adjusted effective income tax rates are calculated as follows:
|
Quarter Ended |
|
Six-Month Period Ended |
|||||||||||||||||||||||
|
Nov. 24, 2024 |
|
Nov. 26, 2023 |
|
Nov. 24, 2024 |
|
Nov. 26, 2023 |
|||||||||||||||||||
In Millions (Except Per Share Data) |
Pretax Earnings (a) |
Income Taxes |
|
Pretax Earnings (a) |
Income Taxes |
|
Pretax Earnings (a) |
Income Taxes |
|
Pretax Earnings (a) |
Income Taxes |
|||||||||||||||
As reported |
$ |
967.1 |
|
$ |
194.8 |
|
|
$ |
714.1 |
$ |
136.0 |
|
|
$ |
1,688.9 |
|
$ |
352.2 |
|
|
$ |
1,544.1 |
|
$ |
309.2 |
|
Transaction costs |
|
8.9 |
|
|
2.0 |
|
|
|
0.6 |
|
- |
|
|
|
8.9 |
|
|
2.0 |
|
|
|
0.6 |
|
|
- |
|
Restructuring charges |
|
1.3 |
|
|
0.3 |
|
|
|
14.8 |
|
4.5 |
|
|
|
4.2 |
|
|
1.0 |
|
|
|
24.6 |
|
|
9.2 |
|
Acquisition integration costs |
|
2.3 |
|
|
0.5 |
|
|
|
- |
|
- |
|
|
|
3.9 |
|
|
0.9 |
|
|
|
0.2 |
|
|
0.1 |
|
Investment activity, net |
|
2.8 |
|
|
0.6 |
|
|
|
19.6 |
|
4.2 |
|
|
|
3.2 |
|
|
0.7 |
|
|
|
22.5 |
|
|
5.2 |
|
Mark-to-market effects |
|
(29.4 |
) |
|
(6.7 |
) |
|
|
25.1 |
|
5.7 |
|
|
|
(0.6 |
) |
|
(0.1 |
) |
|
|
(19.8 |
) |
|
(4.6 |
) |
Project-related costs |
|
0.1 |
|
|
0.1 |
|
|
|
0.3 |
|
0.1 |
|
|
|
0.2 |
|
|
0.1 |
|
|
|
1.1 |
|
|
0.4 |
|
Goodwill impairment |
|
- |
|
|
- |
|
|
|
117.1 |
|
34.7 |
|
|
|
- |
|
|
- |
|
|
|
117.1 |
|
|
34.7 |
|
Product recall |
|
- |
|
|
- |
|
|
|
0.2 |
|
- |
|
|
|
- |
|
|
- |
|
|
|
0.4 |
|
|
0.1 |
|
As adjusted |
$ |
953.2 |
|
$ |
191.6 |
|
|
$ |
891.7 |
$ |
185.2 |
|
|
$ |
1,708.8 |
|
$ |
356.9 |
|
|
$ |
1,690.8 |
|
$ |
354.2 |
|
Effective tax rate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
As reported |
|
|
|
20.1 |
% |
|
|
|
|
19.0 |
% |
|
|
|
|
20.9 |
% |
|
|
|
|
20.0 |
% |
|||
As adjusted |
|
|
|
20.1 |
% |
|
|
|
|
20.8 |
% |
|
|
|
|
20.9 |
% |
|
|
|
|
21.0 |
% |
|||
Sum of adjustments to income taxes |
|
|
$ |
(3.2 |
) |
|
|
|
$ |
49.4 |
|
|
|
|
$ |
4.6 |
|
|
|
|
$ |
45.1 |
|
|||
Average number of common shares - diluted EPS |
|
|
|
560.4 |
|
|
|
|
|
583.4 |
|
|
|
|
|
562.2 |
|
|
|
|
|
587.4 |
|
|||
Impact of income tax adjustments on adjusted diluted EPS |
|
|
$ |
0.01 |
|
|
|
|
$ |
(0.08 |
) |
|
|
|
$ |
(0.01 |
) |
|
|
|
$ |
(0.08 |
) |
|||
Note: Table may not foot due to rounding. |
||||||||||||||||||||||||||
(a) Earnings before income taxes and after-tax earnings from joint ventures. | ||||||||||||||||||||||||||
For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241217574855/en/
(Investors) Jeff Siemon: +1-763-764-2301
(Media) Chelcy Walker: +1-763-764-6364
Source: General Mills, Inc.
FAQ
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