General Mills Reports Fiscal 2025 Third-quarter Results and Updates Full-year Outlook
General Mills (NYSE: GIS) reported fiscal 2025 third-quarter results with net sales down 5% to $4.8 billion, impacted by retailer inventory reductions and slower snacking category performance. Operating profit decreased 2% to $891 million, while diluted EPS fell 4% to $1.12.
Key segment performance included:
- North America Retail: Sales down 7% to $3.0 billion
- North America Pet: Sales flat at $624 million
- North America Foodservice: Sales up 1% to $555 million
- International: Sales down 4% to $651 million
The company updated its fiscal 2025 outlook, now expecting organic net sales to decline 2% to 1.5%, compared to previous guidance of flat to up 1%. Adjusted operating profit and adjusted diluted EPS are projected to decrease 7-8% in constant currency, revised from previous expectations of 2-4% decline.
General Mills (NYSE: GIS) ha riportato i risultati del terzo trimestre dell'anno fiscale 2025, con vendite nette in calo del 5% a 4,8 miliardi di dollari, influenzate dalla riduzione delle scorte da parte dei rivenditori e da una performance più lenta nella categoria degli snack. Il profitto operativo è diminuito del 2% a 891 milioni di dollari, mentre l'EPS diluito è sceso del 4% a 1,12 dollari.
Le performance chiave dei segmenti hanno incluso:
- Retail Nord America: Vendite in calo del 7% a 3,0 miliardi di dollari
- Pet Nord America: Vendite stabili a 624 milioni di dollari
- Foodservice Nord America: Vendite in aumento dell'1% a 555 milioni di dollari
- Internazionale: Vendite in calo del 4% a 651 milioni di dollari
L'azienda ha aggiornato le previsioni per l'anno fiscale 2025, ora prevedendo un calo delle vendite nette organiche del 2% all'1,5%, rispetto alla precedente indicazione di stabilità o un aumento dell'1%. Si prevede che il profitto operativo rettificato e l'EPS diluito rettificato diminuiranno del 7-8% in valuta costante, rivisto rispetto alle precedenti aspettative di un calo del 2-4%.
General Mills (NYSE: GIS) reportó los resultados del tercer trimestre del año fiscal 2025, con ventas netas que cayeron un 5% a 4.8 mil millones de dólares, afectadas por reducciones de inventario por parte de los minoristas y un desempeño más lento en la categoría de snacks. El beneficio operativo disminuyó un 2% a 891 millones de dólares, mientras que el EPS diluido cayó un 4% a 1.12 dólares.
El desempeño clave de los segmentos incluyó:
- Retail Norteamérica: Ventas en caída del 7% a 3.0 mil millones de dólares
- Mascotas Norteamérica: Ventas estables en 624 millones de dólares
- Foodservice Norteamérica: Ventas en aumento del 1% a 555 millones de dólares
- Internacional: Ventas en caída del 4% a 651 millones de dólares
La compañía actualizó su perspectiva para el año fiscal 2025, ahora esperando que las ventas netas orgánicas disminuyan entre un 2% y un 1.5%, en comparación con la guía anterior de estabilidad o un aumento del 1%. Se proyecta que el beneficio operativo ajustado y el EPS diluido ajustado disminuirán entre un 7-8% en moneda constante, revisado desde las expectativas anteriores de una disminución del 2-4%.
제너럴 밀스 (NYSE: GIS)는 2025 회계연도 3분기 실적을 발표했으며, 순매출이 5% 감소한 48억 달러로, 소매업체의 재고 감소와 느린 스낵 카테고리 성과의 영향을 받았습니다. 영업 이익은 2% 감소한 8억 9100만 달러였으며, 희석 주당순이익(EPS)은 4% 감소한 1.12달러로 나타났습니다.
주요 세그먼트 성과는 다음과 같았습니다:
- 북미 소매: 매출 7% 감소, 30억 달러
- 북미 반려동물: 매출 보합, 6억 2400만 달러
- 북미 식음료 서비스: 매출 1% 증가, 5억 5500만 달러
- 국제: 매출 4% 감소, 6억 5100만 달러
회사는 2025 회계연도 전망을 업데이트했습니다, 이제 유기적 순매출이 2%에서 1.5% 감소할 것으로 예상하고 있으며, 이전의 0%에서 1% 증가 예상에서 수정되었습니다. 조정된 영업 이익과 조정된 희석 EPS는 고정 환율 기준으로 7-8% 감소할 것으로 예상되며, 이전의 2-4% 감소 예상에서 수정되었습니다.
General Mills (NYSE: GIS) a publié les résultats du troisième trimestre de l'exercice 2025, avec des ventes nettes en baisse de 5% à 4,8 milliards de dollars, impactées par des réductions de stocks chez les détaillants et une performance plus lente dans la catégorie des collations. Le bénéfice d'exploitation a diminué de 2% pour atteindre 891 millions de dollars, tandis que le BPA dilué a chuté de 4% à 1,12 dollar.
Les performances clés des segments comprenaient :
- Vente au détail en Amérique du Nord : Ventes en baisse de 7% à 3,0 milliards de dollars
- Animaux de compagnie en Amérique du Nord : Ventes stables à 624 millions de dollars
- Restauration en Amérique du Nord : Ventes en hausse de 1% à 555 millions de dollars
- International : Ventes en baisse de 4% à 651 millions de dollars
L'entreprise a mis à jour ses prévisions pour l'exercice 2025, s'attendant désormais à une baisse des ventes nettes organiques de 2% à 1,5%, comparé à l'orientation précédente de stabilité à une augmentation de 1%. Le bénéfice d'exploitation ajusté et le BPA dilué ajusté devraient diminuer de 7 à 8% en monnaie constante, révisé par rapport aux attentes précédentes d'une baisse de 2 à 4%.
General Mills (NYSE: GIS) hat die Ergebnisse des dritten Quartals des Geschäftsjahres 2025 veröffentlicht, mit einem Rückgang des Nettoumsatzes um 5% auf 4,8 Milliarden Dollar, bedingt durch Lagerbestandsreduzierungen bei Einzelhändlern und eine schwächere Leistung in der Snack-Kategorie. Der Betriebsgewinn sank um 2% auf 891 Millionen Dollar, während der verwässerte Gewinn pro Aktie um 4% auf 1,12 Dollar fiel.
Die wichtigsten Segmentleistungen umfassten:
- Einzelhandel Nordamerika: Umsatzrückgang um 7% auf 3,0 Milliarden Dollar
- Haustiere Nordamerika: Umsatz stabil bei 624 Millionen Dollar
- Foodservice Nordamerika: Umsatzsteigerung um 1% auf 555 Millionen Dollar
- International: Umsatzrückgang um 4% auf 651 Millionen Dollar
Das Unternehmen hat seine Prognose für das Geschäftsjahr 2025 aktualisiert und erwartet nun, dass die organischen Nettoumsätze um 2% bis 1,5% zurückgehen, im Vergleich zur vorherigen Prognose von stabil bis zu einem Anstieg von 1%. Der bereinigte Betriebsgewinn und der bereinigte verwässerte Gewinn pro Aktie sollen in konstanten Währungen um 7-8% sinken, revidiert von den vorherigen Erwartungen eines Rückgangs von 2-4%.
- Positive market share trends in Pet, Foodservice, and International segments
- Gross margin improved 40 basis points to 33.9%
- Strong Holistic Margin Management (HMM) cost savings
- Planned cost efficiency initiatives for 2026 growth investment
- Q3 net sales declined 5% to $4.8 billion
- Operating profit decreased 2% to $891 million
- Diluted EPS fell 4% to $1.12
- Downward revision of FY2025 guidance
- Retailer inventory reductions impacting performance
- Slowdown in U.S. snacking categories
Insights
General Mills delivered a disappointing third quarter with
The company has now downgraded its full-year outlook, projecting organic net sales to decline
North America Retail, representing over
Management's strategy to reverse these trends centers on accelerating fiscal 2026 growth through increased investment in innovation, brand communication, and consumer value, funded by their Holistic Margin Management program targeting at least
Strong Holistic Margin Management Productivity Savings and Expected Incremental Cost Efficiency Initiatives to Fuel Increased Growth Investment in Fiscal 2026
-
Third-quarter net sales of
were down 5 percent; organic net sales1 were also down 5 percent, including approximately 4 points of headwinds from retailer inventory reductions and the expected reversal of certain second-quarter favorable timing items$4.8 billion -
Operating profit of
was down 2 percent; adjusted operating profit of$891 million was down 13 percent in constant currency$801 million -
Diluted earnings per share (EPS) of
were down 4 percent; adjusted diluted EPS of$1.12 was down 15 percent in constant currency$1.00 - Company updates full-year fiscal 2025 outlook
¹ Please see Note 7 to the Consolidated Financial Statements below for reconciliation of this and other non-GAAP measures used in this release.
“Our third-quarter organic net sales finished below our expectations, driven largely by greater-than-expected retailer inventory headwinds and a slowdown in snacking categories,” said General Mills Chairman and Chief Executive Officer Jeff Harmening. “At the same time, we drove continued positive market share trends in Pet, Foodservice, and International as well as improvement in Pillsbury refrigerated dough and Totino’s hot snacks, two businesses where we made incremental investments last quarter and saw positive returns.
“We’re focused on improving our sales growth in fiscal 2026 by stepping up our investment in innovation, brand communication, and value for consumers,” Harmening continued. “We’ll fund that investment with another year of industry-leading HMM productivity, coupled with expected new cost-savings initiatives designed to further boost our efficiency and enable growth.”
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.
Third Quarter Results Summary
-
Net sales were down 5 percent to
, driven by lower pound volume and unfavorable foreign currency exchange. Organic net sales were also down 5 percent. Nielsen-measured retail sales were down 1 percent in the quarter across measured markets. The 4-point gap between organic net sales growth and retail sales growth primarily reflected headwinds from retailer inventory reductions and the expected reversal of certain second-quarter favorable timing items.$4.8 billion - Gross margin was up 40 basis points to 33.9 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, unfavorable net price realization and mix, and supply chain deleverage. Adjusted gross margin was down 60 basis points to 33.4 percent of net sales, driven primarily by input cost inflation, unfavorable net price realization and mix, and supply chain deleverage, partially offset by HMM cost savings.
-
Operating profit of
was down 2 percent, driven primarily by lower gross profit dollars and higher selling, general, and administrative (SG&A) expenses, partially offset by a divestiture gain. Operating profit margin of 18.4 percent was up 50 basis points. Adjusted operating profit of$891 million was down 13 percent in constant currency, driven by lower adjusted gross profit dollars. Adjusted operating profit margin was down 140 basis points to 16.5 percent.$801 million -
Net earnings attributable to General Mills of
were down 7 percent and diluted EPS was down 4 percent to$626 million , driven primarily by lower operating profit, higher net interest expense, and a higher effective tax rate, partially offset by lower net shares outstanding. Adjusted diluted EPS of$1.12 was down 15 percent in constant currency, driven primarily by lower adjusted operating profit, a higher adjusted effective tax rate, and higher net interest expense, partially offset by lower net shares outstanding.$1.00
Nine Month Results Summary
-
Net sales of
were down 1 percent due to unfavorable net price realization and mix. Organic net sales were also down 1 percent.$14.9 billion - Gross margin was up 60 basis points to 35.2 percent of net sales, driven primarily by HMM cost savings, partially offset by input cost inflation. Adjusted gross margin was up 30 basis points to 35.1 percent of net sales, driven by HMM cost savings, partially offset by input cost inflation and unfavorable net price realization and mix.
-
Operating profit of
was up 6 percent, driven primarily by a goodwill impairment charge a year ago, a divestiture gain this year, and higher gross profit dollars, partially offset by higher SG&A expenses. Operating profit margin of 18.8 percent was up 130 basis points. Adjusted operating profit of$2.8 billion was down 3 percent in constant currency, driven by higher adjusted SG&A expenses and lower adjusted gross profit dollars. Adjusted operating profit margin was down 20 basis points to 18.3 percent.$2.7 billion -
Net earnings attributable to General Mills of
were up 3 percent and diluted EPS was up 7 percent to$2.0 billion , driven primarily by higher operating profit and lower net shares outstanding, partially offset by a higher effective tax rate and higher net interest expense. Adjusted diluted EPS of$3.57 was down 1 percent in constant currency, driven primarily by lower adjusted operating profit, higher net interest expense, and a higher adjusted effective tax rate, partially offset by lower net shares outstanding.$3.47
Operating Segment Results
-
The following transactions impacted the comparability of year-to-date financial results between fiscal 2024 and fiscal 2025: the acquisition of the Edgard & Cooper pet food business in the fourth quarter of fiscal 2024, the acquisition of the North American Whitebridge Pet Brands business in the third quarter of fiscal 2025, and the divestiture of the
Canada yogurt business in the third quarter of fiscal 2025. - Tables may not foot due to rounding.
Components of Fiscal 2025 Reported Net Sales Growth |
||||
Third Quarter |
Volume |
Price/Mix |
Foreign Exchange |
Reported Net Sales |
North America Retail |
(6) pts |
(1) pt |
-- |
(7)% |
North America Pet |
(1) pt |
1 pt |
-- |
Flat |
North America Foodservice |
(1) pt |
2 pts |
-- |
|
International |
(1) pt |
2 pts |
(5) pts |
(4)% |
Total |
(4) pts |
-- |
(1) pt |
(5)% |
|
|
|
|
|
Nine Months |
|
|
|
|
North America Retail |
(3) pts |
1 pt |
-- |
(3)% |
North America Pet |
3 pts |
(2) pts |
-- |
|
North America Foodservice |
2 pts |
2 pts |
-- |
|
International |
4 pts |
(2) pts |
(2) pts |
(1)% |
Total |
-- |
(1) pt |
-- |
(1)% |
Components of Fiscal 2025 Organic Net Sales Growth |
||||||
Third Quarter |
Organic Volume |
Organic Price/Mix |
Organic Net Sales |
Foreign Exchange |
Acquisitions & Divestitures |
Reported Net Sales |
North America Retail |
(5) pts |
(1) pt |
(6)% |
-- |
(1) pt |
(7)% |
North America Pet |
(3) pts |
(1) pt |
(5)% |
-- |
5 pts |
Flat |
North America Foodservice |
(1) pt |
2 pts |
|
-- |
-- |
|
International |
(4) pts |
-- |
(3)% |
(5) pts |
4 pts |
(4)% |
Total |
(4) pts |
(1) pt |
(5)% |
(1) pt |
1 pt |
(5)% |
|
|
|
|
|
|
|
Nine Months |
|
|
|
|
|
|
North America Retail |
(3) pts |
-- |
(2)% |
-- |
-- |
(3)% |
North America Pet |
3 pts |
(3) pts |
Flat |
-- |
2 pts |
|
North America Foodservice |
2 pts |
2 pts |
|
-- |
-- |
|
International |
2 pts |
(4) pts |
(2)% |
(2) pts |
4 pts |
(1)% |
Total |
-- |
(1) pt |
(1)% |
-- |
1 pt |
(1)% |
Fiscal 2025 Segment Operating Profit Growth |
||
Third Quarter |
% Change as Reported |
% Change in Constant Currency |
North America Retail |
(14)% |
(14)% |
North America Pet |
(20)% |
(20)% |
North America Foodservice |
|
|
International |
(1)% |
(20)% |
Total |
(13)% |
(13)% |
|
|
|
Nine Months |
|
|
North America Retail |
(6)% |
(6)% |
North America Pet |
|
|
North America Foodservice |
|
|
International |
(39)% |
(50)% |
Total |
(5)% |
(5)% |
North America Retail Segment
Third-quarter net sales for General Mills’ North America Retail segment were down 7 percent to
Through nine months, North America Retail segment net sales were down 3 percent to
North America Pet Segment
Third-quarter net sales for the North America Pet segment totaled
Through nine months, North America Pet segment net sales were up 1 percent to
North America Foodservice Segment
Third-quarter net sales for the North America Foodservice segment were up 1 percent to
Through nine months, North America Foodservice net sales increased 3 percent to
International Segment
Third-quarter net sales for the International segment were down 4 percent to
Through nine months, International net sales were down 1 percent to
Joint Venture Summary
Third-quarter constant-currency net sales were down 1 percent for Cereal Partners Worldwide (CPW) and increased 10 percent for Häagen-Dazs Japan (HDJ). Combined after-tax earnings from joint ventures totaled
Other Income Statement Items
Third-quarter unallocated corporate items totaled
Divestiture gain totaled
Net interest expense totaled
Cash Flow Generation and Cash Returns
Cash provided by operating activities totaled
Fiscal 2025 Outlook and Fiscal 2026 Cost Efficiency Initiatives
Third-quarter topline results finished below expectations, driven by retailer inventory headwinds in North America Retail and North America Pet, a slowdown in
- Organic net sales are now expected to be down 2 percent to down 1.5 percent, compared to the previous expectation of the lower end of the range of between flat and up 1 percent.
- Adjusted operating profit and adjusted diluted EPS are now expected to be down 8 percent to down 7 percent in constant currency, compared to the previous ranges of between down 4 percent and down 2 percent in constant currency, reflecting lower net sales.
- Free cash flow conversion is still expected to be at least 95 percent of adjusted after-tax earnings.
-
Due to continued uncertainty regarding the implementation dates and scope of potential
U.S. import tariffs or retaliatory tariffs put in place by other countries, this guidance does not include any impact from new tariff actions in 2025.
With a sharp focus on accelerating organic sales growth in fiscal 2026, the company provided increased visibility to cost efficiency programs that will enable greater investment in innovation, brand support, and value for consumers. Its industry-leading Holistic Margin Management productivity program is expected to deliver at least 5 percent savings in cost of goods sold in fiscal 2026, which represents approximately
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, March 19, 2025, 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 Fiscal 2026 Cost Efficiency Initiatives,” 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: imposed and threatened tariffs by
# # #
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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|
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|
|
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|
|
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|
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Quarter Ended |
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Nine-Month Period Ended |
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Feb. 23, |
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Feb. 25, |
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Feb. 23, |
|
Feb. 25, |
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||||||||||
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2025 |
|
2024 |
|
% Change |
|
2025 |
|
2024 |
|
% Change |
||||||||||
Net sales |
$ |
4,842.2 |
|
|
$ |
5,099.2 |
|
|
(5 |
)% |
|
$ |
14,930.4 |
|
|
$ |
15,143.3 |
|
|
(1 |
)% |
Cost of sales |
|
3,203.1 |
|
|
|
3,391.8 |
|
|
(6 |
)% |
|
|
9,671.4 |
|
|
|
9,899.5 |
|
|
(2 |
)% |
Selling, general, and administrative expenses |
|
844.4 |
|
|
|
790.9 |
|
|
7 |
% |
|
|
2,551.5 |
|
|
|
2,460.7 |
|
|
4 |
% |
Divestiture gain |
|
(95.9 |
) |
|
|
- |
|
|
NM |
|
|
|
(95.9 |
) |
|
|
- |
|
|
NM |
|
Restructuring, impairment, and other exit (recoveries) costs |
|
(0.8 |
) |
|
|
5.8 |
|
|
(114 |
)% |
|
|
2.6 |
|
|
|
130.6 |
|
|
(98 |
)% |
Operating profit |
|
891.4 |
|
|
|
910.7 |
|
|
(2 |
)% |
|
|
2,800.8 |
|
|
|
2,652.5 |
|
|
6 |
% |
Benefit plan non-service income |
|
(13.9 |
) |
|
|
(18.6 |
) |
|
(25 |
)% |
|
|
(41.6 |
) |
|
|
(55.7 |
) |
|
(25 |
)% |
Interest, net |
|
136.3 |
|
|
|
121.7 |
|
|
12 |
% |
|
|
384.5 |
|
|
|
356.5 |
|
|
8 |
% |
Earnings before income taxes and after-tax earnings from joint ventures |
|
769.0 |
|
|
|
807.6 |
|
|
(5 |
)% |
|
|
2,457.9 |
|
|
|
2,351.7 |
|
|
5 |
% |
Income taxes |
|
152.4 |
|
|
|
149.3 |
|
|
2 |
% |
|
|
504.6 |
|
|
|
458.5 |
|
|
10 |
% |
After-tax earnings from joint ventures |
|
14.4 |
|
|
|
18.0 |
|
|
(20 |
)% |
|
|
63.6 |
|
|
|
65.7 |
|
|
(3 |
)% |
Net earnings, including earnings attributable to noncontrolling interests |
|
631.0 |
|
|
|
676.3 |
|
|
(7 |
)% |
|
|
2,016.9 |
|
|
|
1,958.9 |
|
|
3 |
% |
Net earnings attributable to noncontrolling interests |
|
5.4 |
|
|
|
6.2 |
|
|
(13 |
)% |
|
|
15.7 |
|
|
|
19.8 |
|
|
(21 |
)% |
Net earnings attributable to General Mills |
$ |
625.6 |
|
|
$ |
670.1 |
|
|
(7 |
)% |
|
$ |
2,001.2 |
|
|
$ |
1,939.1 |
|
|
3 |
% |
Earnings per share – basic |
$ |
1.14 |
|
|
$ |
1.18 |
|
|
(3 |
)% |
|
$ |
3.60 |
|
|
$ |
3.35 |
|
|
7 |
% |
Earnings per share – diluted |
$ |
1.12 |
|
|
$ |
1.17 |
|
|
(4 |
)% |
|
$ |
3.57 |
|
|
$ |
3.33 |
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Quarter Ended |
|
|
Nine-Month Period Ended |
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|
|
Feb. 23, |
|
Feb. 25, |
|
Basis Pt |
|
|
Feb. 23, |
|
Feb. 25, |
|
Basis Pt |
||||||||
Comparisons as a % of net sales: |
|
2025 |
|
2024 |
|
Change |
|
|
2025 |
|
2024 |
|
Change |
||||||||
Gross margin |
|
33.9 |
% |
|
|
33.5 |
% |
|
40 |
|
|
|
35.2 |
% |
|
|
34.6 |
% |
|
60 |
|
Selling, general, and administrative expenses |
|
17.4 |
% |
|
|
15.5 |
% |
|
190 |
|
|
|
17.1 |
% |
|
|
16.2 |
% |
|
90 |
|
Operating profit |
|
18.4 |
% |
|
|
17.9 |
% |
|
50 |
|
|
|
18.8 |
% |
|
|
17.5 |
% |
|
130 |
|
Net earnings attributable to General Mills |
|
12.9 |
% |
|
|
13.1 |
% |
|
(20 |
) |
|
|
13.4 |
% |
|
|
12.8 |
% |
|
60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Quarter Ended |
|
|
Nine-Month Period Ended |
||||||||||||||||
Comparisons as a % of net sales excluding |
|
Feb. 23, |
|
Feb. 25, |
|
Basis Pt |
|
|
Feb. 23, |
|
Feb. 25, |
|
Basis Pt |
||||||||
certain items affecting comparability (a): |
|
2025 |
|
2024 |
|
Change |
|
|
2025 |
|
2024 |
|
Change |
||||||||
Adjusted gross margin |
|
33.4 |
% |
|
|
34.0 |
% |
|
(60 |
) |
|
|
35.1 |
% |
|
|
34.8 |
% |
|
30 |
|
Adjusted operating profit |
|
16.5 |
% |
|
|
17.9 |
% |
|
(140 |
) |
|
|
18.3 |
% |
|
|
18.5 |
% |
|
(20 |
) |
Adjusted net earnings attributable to General Mills |
|
11.4 |
% |
|
|
13.2 |
% |
|
(180 |
) |
|
|
13.0 |
% |
|
|
13.5 |
% |
|
(50 |
) |
(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 |
|
|
Nine-Month Period Ended |
||||||||||||||||
|
Feb. 23, 2025 |
|
Feb. 25, 2024 |
|
% Change |
|
|
Feb. 23, 2025 |
|
|
Feb. 25, 2024 |
|
% Change |
||||||||
Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America Retail |
$ |
3,009.1 |
|
|
$ |
3,242.1 |
|
|
(7 |
)% |
|
$ |
9,347.2 |
|
|
$ |
9,620.1 |
|
|
(3 |
)% |
International |
|
651.3 |
|
|
|
680.1 |
|
|
(4 |
)% |
|
|
2,058.9 |
|
|
|
2,079.0 |
|
|
(1 |
)% |
North America Pet |
|
623.7 |
|
|
|
624.5 |
|
|
Flat |
|
|
1,795.6 |
|
|
|
1,773.7 |
|
|
1 |
% |
|
North America Foodservice |
|
555.3 |
|
|
|
551.7 |
|
|
1 |
% |
|
|
1,721.5 |
|
|
|
1,669.7 |
|
|
3 |
% |
Total segment net sales |
$ |
4,839.4 |
|
|
$ |
5,098.4 |
|
|
(5 |
)% |
|
$ |
14,923.2 |
|
|
$ |
15,142.5 |
|
|
(1 |
)% |
Corporate and other |
|
2.8 |
|
|
|
0.8 |
|
|
NM |
|
|
|
7.2 |
|
|
|
0.8 |
|
|
NM |
|
Total net sales |
$ |
4,842.2 |
|
|
$ |
5,099.2 |
|
|
(5 |
)% |
|
$ |
14,930.4 |
|
|
$ |
15,143.3 |
|
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America Retail |
$ |
648.1 |
|
|
$ |
752.2 |
|
|
(14 |
)% |
|
$ |
2,256.1 |
|
|
$ |
2,410.3 |
|
|
(6 |
)% |
International |
|
18.0 |
|
|
|
18.2 |
|
|
(1 |
)% |
|
|
62.7 |
|
|
|
102.8 |
|
|
(39 |
)% |
North America Pet |
|
102.2 |
|
|
|
128.3 |
|
|
(20 |
)% |
|
|
360.9 |
|
|
|
342.0 |
|
|
6 |
% |
North America Foodservice |
|
82.3 |
|
|
|
81.7 |
|
|
1 |
% |
|
|
272.3 |
|
|
|
236.3 |
|
|
15 |
% |
Total segment operating profit |
$ |
850.6 |
|
|
$ |
980.4 |
|
|
(13 |
)% |
|
$ |
2,952.0 |
|
|
$ |
3,091.4 |
|
|
(5 |
)% |
Unallocated corporate items |
|
55.9 |
|
|
|
63.9 |
|
|
(13 |
)% |
|
|
244.5 |
|
|
|
308.3 |
|
|
(21 |
)% |
Divestiture gain |
|
(95.9 |
) |
|
|
- |
|
|
NM |
|
|
|
(95.9 |
) |
|
|
- |
|
|
NM |
|
Restructuring, impairment, and other exit (recoveries) costs |
|
(0.8 |
) |
|
|
5.8 |
|
|
(114 |
)% |
|
|
2.6 |
|
|
|
130.6 |
|
|
(98 |
)% |
Operating profit |
$ |
891.4 |
|
|
$ |
910.7 |
|
|
(2 |
)% |
|
$ |
2,800.8 |
|
|
$ |
2,652.5 |
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Quarter Ended |
|
|
Nine-Month Period Ended |
||||||||||||||||
|
|
Feb. 23, 2025 |
|
|
Feb. 25, 2024 |
|
Basis Pt Change |
|
|
Feb. 23, 2025 |
|
|
Feb. 25, 2024 |
|
Basis Pt Change |
||||||
Segment operating profit as a % of net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
North America Retail |
|
21.5 |
% |
|
|
23.2 |
% |
|
(170 |
) |
|
|
24.1 |
% |
|
|
25.1 |
% |
|
(100 |
) |
International |
|
2.8 |
% |
|
|
2.7 |
% |
|
10 |
|
|
|
3.0 |
% |
|
|
4.9 |
% |
|
(190 |
) |
North America Pet |
|
16.4 |
% |
|
|
20.5 |
% |
|
(410 |
) |
|
|
20.1 |
% |
|
|
19.3 |
% |
|
80 |
|
North America Foodservice |
|
14.8 |
% |
|
|
14.8 |
% |
|
Flat |
|
|
15.8 |
% |
|
|
14.2 |
% |
|
160 |
|
|
Total segment operating profit |
|
17.6 |
% |
|
|
19.2 |
% |
|
(160 |
) |
|
|
19.8 |
% |
|
|
20.4 |
% |
|
(60 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
See accompanying notes to consolidated financial statements. |
|
|
|
|
|
|
|
|
Consolidated Balance Sheets |
|||||||||||
GENERAL MILLS, INC. AND SUBSIDIARIES |
|||||||||||
(In Millions, Except Par Value) |
|||||||||||
|
|
|
|
|
|
|
|
|
|||
|
Feb. 23, 2025 |
|
Feb. 25, 2024 |
|
May 26, 2024 |
||||||
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|||||
ASSETS |
|
|
|
|
|
|
|
|
|||
Current assets: |
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
$ |
521.3 |
|
|
$ |
588.6 |
|
|
$ |
418.0 |
|
Receivables |
|
1,791.0 |
|
|
|
1,771.1 |
|
|
|
1,696.2 |
|
Inventories |
|
1,811.6 |
|
|
|
1,828.0 |
|
|
|
1,898.2 |
|
Prepaid expenses and other current assets |
|
401.9 |
|
|
|
466.8 |
|
|
|
568.5 |
|
Assets held for sale |
|
730.2 |
|
|
|
- |
|
|
|
- |
|
Total current assets |
|
5,256.0 |
|
|
|
4,654.5 |
|
|
|
4,580.9 |
|
Land, buildings, and equipment |
|
3,460.5 |
|
|
|
3,643.6 |
|
|
|
3,863.9 |
|
Goodwill |
|
15,518.7 |
|
|
|
14,433.7 |
|
|
|
14,750.7 |
|
Other intangible assets |
|
7,059.0 |
|
|
|
6,957.2 |
|
|
|
6,979.9 |
|
Other assets |
|
1,412.0 |
|
|
|
1,171.5 |
|
|
|
1,294.5 |
|
Total assets |
$ |
32,706.2 |
|
|
$ |
30,860.5 |
|
|
$ |
31,469.9 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|
|
|
|
|||
Accounts payable |
$ |
3,692.3 |
|
|
$ |
3,613.5 |
|
|
$ |
3,987.8 |
|
Current portion of long-term debt |
|
1,941.0 |
|
|
|
812.2 |
|
|
|
1,614.1 |
|
Notes payable |
|
406.7 |
|
|
|
686.7 |
|
|
|
11.8 |
|
Other current liabilities |
|
1,815.7 |
|
|
|
1,949.5 |
|
|
|
1,419.4 |
|
Liabilities held for sale |
|
20.5 |
|
|
|
- |
|
|
|
- |
|
Total current liabilities |
|
7,876.2 |
|
|
|
7,061.9 |
|
|
|
7,033.1 |
|
Long-term debt |
|
11,839.6 |
|
|
|
11,015.1 |
|
|
|
11,304.2 |
|
Deferred income taxes |
|
2,263.9 |
|
|
|
2,023.5 |
|
|
|
2,200.6 |
|
Other liabilities |
|
1,213.9 |
|
|
|
1,068.7 |
|
|
|
1,283.5 |
|
Total liabilities |
|
23,193.6 |
|
|
|
21,169.2 |
|
|
|
21,821.4 |
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|||
Common stock, 754.6 shares issued, |
|
75.5 |
|
|
|
75.5 |
|
|
|
75.5 |
|
Additional paid-in capital |
|
1,194.9 |
|
|
|
1,210.3 |
|
|
|
1,227.0 |
|
Retained earnings |
|
21,636.0 |
|
|
|
20,416.7 |
|
|
|
20,971.8 |
|
Common stock in treasury, at cost, shares of 207.1, 190.1, and 195.5 |
|
(11,168.8 |
) |
|
|
(9,968.4 |
) |
|
|
(10,357.9 |
) |
Accumulated other comprehensive loss |
|
(2,474.4 |
) |
|
|
(2,297.3 |
) |
|
|
(2,519.7 |
) |
Total stockholders’ equity |
|
9,263.2 |
|
|
|
9,436.8 |
|
|
|
9,396.7 |
|
Noncontrolling interests |
|
249.4 |
|
|
|
254.5 |
|
|
|
251.8 |
|
Total equity |
|
9,512.6 |
|
|
|
9,691.3 |
|
|
|
9,648.5 |
|
Total liabilities and equity |
$ |
32,706.2 |
|
|
$ |
30,860.5 |
|
|
$ |
31,469.9 |
|
|
|
|
|
|
|
|
|
|
|||
See accompanying notes to consolidated financial statements. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated Statements of Cash Flows |
|||||||
GENERAL MILLS, INC. AND SUBSIDIARIES |
|||||||
(Unaudited) (In Millions) |
|||||||
|
Nine-Month Period Ended |
||||||
|
Feb. 23, 2025 |
|
Feb. 25, 2024 |
||||
Cash Flows - Operating Activities |
|
|
|
|
|
||
Net earnings, including earnings attributable to noncontrolling interests |
$ |
2,016.9 |
|
|
$ |
1,958.9 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
||
Depreciation and amortization |
|
403.4 |
|
|
|
412.2 |
|
After-tax earnings from joint ventures |
|
(63.6 |
) |
|
|
(65.7 |
) |
Distributions of earnings from joint ventures |
|
30.9 |
|
|
|
31.4 |
|
Stock-based compensation |
|
67.1 |
|
|
|
76.7 |
|
Deferred income taxes |
|
(13.5 |
) |
|
|
(85.5 |
) |
Pension and other postretirement benefit plan contributions |
|
(23.0 |
) |
|
|
(20.0 |
) |
Pension and other postretirement benefit plan costs |
|
(9.9 |
) |
|
|
(20.2 |
) |
Divestiture gain |
|
(95.9 |
) |
|
|
- |
|
Restructuring, impairment, and other exit (recoveries) costs |
|
(3.4 |
) |
|
|
119.7 |
|
Changes in current assets and liabilities, excluding the effects of acquisitions and divestitures |
|
55.8 |
|
|
|
(9.6 |
) |
Other, net |
|
(58.2 |
) |
|
|
41.0 |
|
Net cash provided by operating activities |
|
2,306.6 |
|
|
|
2,438.9 |
|
Cash Flows - Investing Activities |
|
|
|
|
|
||
Purchases of land, buildings, and equipment |
|
(405.1 |
) |
|
|
(485.6 |
) |
Acquisition, net of cash acquired |
|
(1,417.3 |
) |
|
|
(25.5 |
) |
Proceeds from divestiture |
|
241.8 |
|
|
|
- |
|
Investments in affiliates, net |
|
6.6 |
|
|
|
(1.5 |
) |
Proceeds from disposal of land, buildings, and equipment |
|
1.0 |
|
|
|
0.2 |
|
Other, net |
|
(5.6 |
) |
|
|
4.8 |
|
Net cash used by investing activities |
|
(1,578.6 |
) |
|
|
(507.6 |
) |
Cash Flows - Financing Activities |
|
|
|
|
|
||
Change in notes payable |
|
397.0 |
|
|
|
654.5 |
|
Issuance of long-term debt |
|
1,500.0 |
|
|
|
1,000.0 |
|
Payment of long-term debt |
|
(500.0 |
) |
|
|
(900.0 |
) |
Proceeds from common stock issued on exercised options |
|
38.4 |
|
|
|
11.1 |
|
Purchases of common stock for treasury |
|
(901.9 |
) |
|
|
(1,601.6 |
) |
Dividends paid |
|
(1,008.4 |
) |
|
|
(1,028.0 |
) |
Distributions to noncontrolling interest holders |
|
(17.3 |
) |
|
|
(16.6 |
) |
Other, net |
|
(117.5 |
) |
|
|
(47.0 |
) |
Net cash used by financing activities |
|
(609.7 |
) |
|
|
(1,927.6 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(15.0 |
) |
|
|
(0.6 |
) |
Increase in cash and cash equivalents |
|
103.3 |
|
|
|
3.1 |
|
Cash and cash equivalents - beginning of year |
|
418.0 |
|
|
|
585.5 |
|
Cash and cash equivalents - end of period |
$ |
521.3 |
|
|
$ |
588.6 |
|
Cash Flows from changes in current assets and liabilities, excluding the effects of acquisitions and divestitures: |
|
|
|
|
|
||
Receivables |
$ |
(95.7 |
) |
|
$ |
(83.8 |
) |
Inventories |
|
59.5 |
|
|
|
347.8 |
|
Prepaid expenses and other current assets |
|
139.6 |
|
|
|
269.4 |
|
Accounts payable |
|
(136.7 |
) |
|
|
(543.7 |
) |
Other current liabilities |
|
89.1 |
|
|
|
0.7 |
|
Changes in current assets and liabilities |
$ |
55.8 |
|
|
$ |
(9.6 |
) |
|
|
|
|
|
|
||
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 third quarter of fiscal 2025, we acquired NX Pet Holding, Inc., representing Whitebridge Pet Brands’ North American premium cat feeding and pet treating business, for a purchase price of |
|
|
|
During the second quarter of fiscal 2025, we entered into definitive agreements to sell our North American yogurt businesses to affiliates of Groupe 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 (recoveries) charges and project-related costs are recorded in our Consolidated Statement of Earnings as follows: |
|
|
Quarter Ended |
|
Nine-Month Period Ended |
|||||||||
|
In Millions |
Feb. 23, 2025 |
|
Feb. 25, 2024 |
|
Feb. 23, 2025 |
|
Feb. 25, 2024 |
|||||
|
Restructuring, impairment, and other exit (recoveries) costs |
$ |
(0.8 |
) |
|
$ |
5.8 |
|
$ |
2.6 |
|
$ |
130.6 |
|
Cost of sales |
|
0.2 |
|
|
|
0.1 |
|
|
1.0 |
|
|
17.0 |
|
Total restructuring and impairment (recoveries) charges |
$ |
(0.6 |
) |
|
$ |
5.9 |
|
$ |
3.6 |
|
$ |
147.6 |
|
Project-related costs classified in cost of sales |
$ |
0.2 |
|
|
$ |
0.5 |
|
$ |
0.4 |
|
$ |
1.6 |
In the nine-month period ended February 23, 2025, we did not undertake any new restructuring actions. We recorded a |
|
|
|
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 |
Nine-Month Period Ended |
|||||||||
|
In Millions, Except per Share Data |
Feb. 23, 2025 |
|
Feb. 25, 2024 |
Feb. 23, 2025 |
|
Feb. 25, 2024 |
|||||
|
Net earnings attributable to General Mills |
$ |
625.6 |
|
$ |
670.1 |
$ |
2,001.2 |
|
$ |
1,939.1 |
|
|
Average number of common shares – basic EPS |
|
552.6 |
|
|
569.5 |
|
556.6 |
|
|
578.6 |
|
|
Incremental share effect from: (a) |
|
|
|
|
|
|
|
|
|
|
|
|
Stock options |
|
1.0 |
|
|
1.3 |
|
1.4 |
|
|
1.8 |
|
|
Restricted stock units and performance share units |
|
1.4 |
|
|
2.0 |
|
1.8 |
|
|
2.1 |
|
|
Average number of common shares – diluted EPS |
|
555.0 |
|
|
572.8 |
|
559.8 |
|
|
582.5 |
|
|
Earnings per share – basic |
$ |
1.14 |
|
$ |
1.18 |
$ |
3.60 |
|
$ |
3.35 |
|
|
Earnings per share – diluted |
$ |
1.12 |
|
$ |
1.17 |
$ |
3.57 |
|
$ |
3.33 |
|
(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 third quarter of fiscal 2025 was 19.8 percent compared to 18.5 percent for the third quarter of fiscal 2024. The 1.3 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 21.0 percent in the third quarter of fiscal 2025, compared to 18.4 percent in the same period last year (see Note 7 below for a description of our use of measures not defined by GAAP). The 2.6 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. |
|
|
The effective tax rate for the nine-month period ended February 23, 2025, was 20.5 percent compared to 19.5 percent in the same period last year. The 1.0 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 nine-month period ended February 23, 2025, compared to 20.1 percent in the same period last year (see Note 7 below for a description of our use of measures not defined by GAAP). The 0.8 percentage point increase is primarily due to certain nonrecurring discrete tax benefits in fiscal 2024, partially offset by favorable earnings mix by jurisdiction in fiscal 2025. |
|
|
|
(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.
Divestiture gain
Divestiture gain related to the sale of our
Transaction costs
Fiscal 2025 transaction costs related to the definitive agreements to sell our North American yogurt businesses and the Whitebridge Pet Brands acquisition. Immaterial transaction costs incurred in fiscal 2024. Please see Note 2.
Mark-to-market effects
Net mark-to-market valuation of certain commodity positions recognized in unallocated corporate items. Please see Note 4.
Acquisition integration costs
Integration costs related to the Whitebridge Pet Brands acquisition and 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.
Restructuring (recoveries) charges and project-related costs
Restructuring (recoveries) charges and project-related costs related to previously announced restructuring actions recorded in fiscal 2025 and fiscal 2024. Please see Note 3.
Goodwill impairment
Non-cash goodwill impairment charge related to our
Product recall, net
Costs related to the fiscal 2023 voluntary recall of certain international Häagen-Dazs ice cream products recorded in fiscal 2024, net of recoveries.
CPW asset impairment
Our share of impairment charges related to certain long-lived assets recorded in fiscal 2025.
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 |
|
|
Nine-Month Period Ended |
||||||||||||||
|
Feb. 23, 2025 |
|
Feb. 25, 2024 |
Change |
|
Feb. 23, 2025 |
|
Feb. 25, 2024 |
Change |
||||||||||
Operating profit as reported |
$ |
891.4 |
|
|
$ |
910.7 |
|
(2 |
)% |
|
$ |
2,800.8 |
|
|
$ |
2,652.5 |
|
6 |
% |
Divestiture gain |
|
(95.9 |
) |
|
|
- |
|
|
|
|
(95.9 |
) |
|
|
- |
|
|
||
Transaction costs |
|
24.0 |
|
|
|
- |
|
|
|
|
32.9 |
|
|
|
0.6 |
|
|
||
Mark-to-market effects |
|
(23.2 |
) |
|
|
25.7 |
|
|
|
|
(23.8 |
) |
|
|
5.9 |
|
|
||
Acquisition integration costs |
|
3.3 |
|
|
|
- |
|
|
|
|
7.2 |
|
|
|
0.2 |
|
|
||
Investment activity, net |
|
1.7 |
|
|
|
2.7 |
|
|
|
|
4.9 |
|
|
|
25.2 |
|
|
||
Restructuring (recoveries) charges |
|
(0.6 |
) |
|
|
5.9 |
|
|
|
|
3.6 |
|
|
|
30.5 |
|
|
||
Project-related costs |
|
0.2 |
|
|
|
0.5 |
|
|
|
|
0.4 |
|
|
|
1.6 |
|
|
||
Goodwill impairment |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
117.1 |
|
|
||
Product recall, net |
|
- |
|
|
|
(31.1 |
) |
|
|
|
- |
|
|
|
(30.7 |
) |
|
||
Adjusted operating profit |
$ |
800.8 |
|
|
$ |
914.5 |
|
(12 |
)% |
|
$ |
2,730.1 |
|
|
$ |
2,802.9 |
|
(3 |
)% |
Foreign currency exchange impact |
|
|
|
|
|
Flat |
|
|
|
|
|
Flat |
|||||||
Adjusted operating profit growth, on a constant-currency basis |
|
|
|
|
|
(13 |
)% |
|
|
|
|
|
|
(3 |
)% |
||||
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 |
|
Nine-Month Period Ended |
||||||||||||||||
Per Share Data |
Feb. 23, 2025 |
|
Feb. 25, 2024 |
Change |
|
Feb. 23, 2025 |
|
Feb. 25, 2024 |
Change |
||||||||||
Diluted earnings per share, as reported |
$ |
1.12 |
|
|
$ |
1.17 |
|
(4 |
)% |
|
$ |
3.57 |
|
|
$ |
3.33 |
|
7 |
% |
Divestiture gain |
|
(0.15 |
) |
|
|
- |
|
|
|
|
(0.15 |
) |
|
|
- |
|
|
||
Transaction costs |
|
0.03 |
|
|
|
- |
|
|
|
|
0.04 |
|
|
|
- |
|
|
||
Mark-to-market effects |
|
(0.03 |
) |
|
|
0.04 |
|
|
|
|
(0.03 |
) |
|
|
0.01 |
|
|
||
Acquisition integration costs |
|
- |
|
|
|
- |
|
|
|
|
0.01 |
|
|
|
- |
|
|
||
Investment activity, net |
|
0.01 |
|
|
|
- |
|
|
|
|
0.01 |
|
|
|
0.03 |
|
|
||
CPW asset impairment |
|
0.01 |
|
|
|
- |
|
|
|
|
0.01 |
|
|
|
- |
|
|
||
Restructuring charges |
|
- |
|
|
|
0.01 |
|
|
|
|
0.01 |
|
|
|
0.04 |
|
|
||
Goodwill impairment |
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
0.14 |
|
|
||
Product recall, net |
|
- |
|
|
|
(0.04 |
) |
|
|
|
- |
|
|
|
(0.04 |
) |
|
||
Adjusted diluted earnings per share |
$ |
1.00 |
|
|
$ |
1.17 |
|
(15 |
)% |
|
$ |
3.47 |
|
|
$ |
3.51 |
|
(1 |
)% |
Foreign currency exchange impact |
|
|
|
|
|
1pt |
|
|
|
|
|
Flat |
|||||||
Adjusted diluted earnings per share growth, on a constant-currency basis |
|
|
|
|
|
(15 |
)% |
|
|
|
|
|
|
(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. |
|||||||||||||||||||
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 |
|
Feb. 23, 2025 |
|
|
Feb. 25, 2024 |
|
|||||||||
Comparisons as a % of Net Sales |
|
Value |
|
Percent of Net Sales |
|
|
|
Value |
|
Percent of Net Sales |
|
||||
Gross margin as reported (a) |
$ |
1,639.1 |
|
|
33.9 |
|
% |
|
$ |
1,707.4 |
|
|
33.5 |
|
% |
Mark-to-market effects |
|
(23.2 |
) |
|
(0.5 |
) |
% |
|
|
25.7 |
|
|
0.5 |
|
% |
Restructuring charges |
|
0.2 |
|
|
- |
|
% |
|
|
0.1 |
|
|
- |
|
% |
Project-related costs |
|
0.2 |
|
|
- |
|
% |
|
|
0.5 |
|
|
- |
|
% |
Product recall, net |
|
- |
|
|
- |
|
% |
|
|
(0.1 |
) |
|
- |
|
% |
Adjusted gross margin |
$ |
1,616.3 |
|
|
33.4 |
|
% |
|
$ |
1,733.6 |
|
|
34.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating profit as reported |
$ |
891.4 |
|
|
18.4 |
|
% |
|
$ |
910.7 |
|
|
17.9 |
|
% |
Divestiture gain |
|
(95.9 |
) |
|
(2.0 |
) |
% |
|
|
- |
|
|
- |
|
% |
Transaction costs |
|
24.0 |
|
|
0.5 |
|
% |
|
|
- |
|
|
- |
|
% |
Mark-to-market effects |
|
(23.2 |
) |
|
(0.5 |
) |
% |
|
|
25.7 |
|
|
0.5 |
|
% |
Acquisition integration costs |
|
3.3 |
|
|
0.1 |
|
% |
|
|
- |
|
|
- |
|
% |
Investment activity, net |
|
1.7 |
|
|
- |
|
% |
|
|
2.7 |
|
|
0.1 |
|
% |
Restructuring (recoveries) charges |
|
(0.6 |
) |
|
- |
|
% |
|
|
5.9 |
|
|
0.1 |
|
% |
Project-related costs |
|
0.2 |
|
|
- |
|
% |
|
|
0.5 |
|
|
- |
|
% |
Product recall, net |
|
- |
|
|
- |
|
% |
|
|
(31.1 |
) |
|
(0.6 |
) |
% |
Adjusted operating profit |
$ |
800.8 |
|
|
16.5 |
|
% |
|
$ |
914.5 |
|
|
17.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings attributable to General Mills as reported |
$ |
625.6 |
|
|
12.9 |
|
% |
|
$ |
670.1 |
|
|
13.1 |
|
% |
Divestiture gain, net of tax (b) |
|
(84.8 |
) |
|
(1.8 |
) |
% |
|
|
- |
|
|
- |
|
% |
Transaction costs, net of tax (b) |
|
18.5 |
|
|
0.4 |
|
% |
|
|
- |
|
|
- |
|
% |
Mark-to-market effects, net of tax (b) |
|
(17.8 |
) |
|
(0.4 |
) |
% |
|
|
19.9 |
|
|
0.4 |
|
% |
CPW asset impairment |
|
6.4 |
|
|
0.1 |
|
% |
|
|
0.3 |
|
|
- |
|
% |
Acquisition integration costs, net of tax (b) |
|
2.5 |
|
|
0.1 |
|
% |
|
|
- |
|
|
- |
|
% |
Investment activity, net, net of tax (b) |
|
1.2 |
|
|
- |
|
% |
|
|
0.5 |
|
|
- |
|
% |
Restructuring (recoveries) charges, net of tax (b) |
|
(0.4 |
) |
|
- |
|
% |
|
|
6.9 |
|
|
0.1 |
|
% |
Project-related costs, net of tax (b) |
|
0.1 |
|
|
- |
|
% |
|
|
0.3 |
|
|
- |
|
% |
Product recall, net, net of tax (b) |
|
- |
|
|
- |
|
% |
|
|
(23.9 |
) |
|
(0.5 |
) |
% |
Adjusted net earnings attributable to General Mills |
$ |
551.3 |
|
|
11.4 |
|
% |
|
$ |
674.0 |
|
|
13.2 |
|
% |
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. |
|||||||||||||||
(a) Net sales less cost of sales. | |||||||||||||||
(b) See reconciliation of adjusted effective income tax rate below for tax impact of each adjustment. |
|
Nine-Month Period Ended |
||||||||||||||
In Millions |
|
Feb. 23, 2025 |
|
|
Feb. 25, 2024 |
|
|||||||||
Comparisons as a % of Net Sales |
|
Value |
|
Percent of Net Sales |
|
|
|
Value |
|
Percent of Net Sales |
|
||||
Gross margin as reported (a) |
$ |
5,259.0 |
|
|
35.2 |
|
% |
|
$ |
5,243.8 |
|
|
34.6 |
|
% |
Mark-to-market effects |
|
(23.8 |
) |
|
(0.2 |
) |
% |
|
|
5.9 |
|
|
- |
|
% |
Restructuring charges |
|
1.0 |
|
|
- |
|
% |
|
|
17.0 |
|
|
0.1 |
|
% |
Project-related costs |
|
0.4 |
|
|
- |
|
% |
|
|
1.6 |
|
|
- |
|
% |
Product recall, net |
|
- |
|
|
- |
|
% |
|
|
(0.1 |
) |
|
- |
|
% |
Adjusted gross margin |
$ |
5,236.7 |
|
|
35.1 |
|
% |
|
$ |
5,268.2 |
|
|
34.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating profit as reported |
$ |
2,800.8 |
|
|
18.8 |
|
% |
|
$ |
2,652.5 |
|
|
17.5 |
|
% |
Divestiture gain |
|
(95.9 |
) |
|
(0.6 |
) |
% |
|
|
- |
|
|
- |
|
% |
Transaction costs |
|
32.9 |
|
|
0.2 |
|
% |
|
|
0.6 |
|
|
- |
|
% |
Mark-to-market effects |
|
(23.8 |
) |
|
(0.2 |
) |
% |
|
|
5.9 |
|
|
- |
|
% |
Acquisition integration costs |
|
7.2 |
|
|
- |
|
% |
|
|
0.2 |
|
|
- |
|
% |
Investment activity, net |
|
4.9 |
|
|
- |
|
% |
|
|
25.2 |
|
|
0.2 |
|
% |
Restructuring charges |
|
3.6 |
|
|
- |
|
% |
|
|
30.5 |
|
|
0.2 |
|
% |
Project-related costs |
|
0.4 |
|
|
- |
|
% |
|
|
1.6 |
|
|
- |
|
% |
Goodwill impairment |
|
- |
|
|
- |
|
% |
|
|
117.1 |
|
|
0.8 |
|
% |
Product recall, net |
|
- |
|
|
- |
|
% |
|
|
(30.7 |
) |
|
(0.2 |
) |
% |
Adjusted operating profit |
$ |
2,730.1 |
|
|
18.3 |
|
% |
|
$ |
2,802.9 |
|
|
18.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings attributable to General Mills as reported |
$ |
2,001.2 |
|
|
13.4 |
|
% |
|
$ |
1,939.1 |
|
|
12.8 |
|
% |
Divestiture gain, net of tax (b) |
|
(84.8 |
) |
|
(0.6 |
) |
% |
|
|
- |
|
|
- |
|
% |
Transaction costs, net of tax (b) |
|
25.4 |
|
|
0.2 |
|
% |
|
|
0.6 |
|
|
- |
|
% |
Mark-to-market effects, net of tax (b) |
|
(18.3 |
) |
|
(0.1 |
) |
% |
|
|
4.6 |
|
|
- |
|
% |
CPW asset impairment |
|
6.6 |
|
|
- |
|
% |
|
|
2.0 |
|
|
- |
|
% |
Acquisition integration costs, net of tax (b) |
|
5.5 |
|
|
- |
|
% |
|
|
0.2 |
|
|
- |
|
% |
Investment activity, net, net of tax (b) |
|
3.7 |
|
|
- |
|
% |
|
|
17.7 |
|
|
0.1 |
|
% |
Restructuring charges, net of tax (b) |
|
2.8 |
|
|
- |
|
% |
|
|
22.4 |
|
|
0.1 |
|
% |
Project-related costs, net of tax (b) |
|
0.3 |
|
|
- |
|
% |
|
|
1.0 |
|
|
- |
|
% |
Goodwill impairment, net of tax (b) |
|
- |
|
|
- |
|
% |
|
|
82.4 |
|
|
0.5 |
|
% |
Product recall, net, net of tax (b) |
|
- |
|
|
- |
|
% |
|
|
(23.6 |
) |
|
(0.2 |
) |
% |
Adjusted net earnings attributable to General Mills |
$ |
1,942.4 |
|
|
13.0 |
|
% |
|
$ |
2,046.4 |
|
|
13.5 |
|
% |
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 Feb. 23, 2025 |
|||||
|
|
Percentage Change in Operating Profit as Reported |
Impact of Foreign Currency Exchange |
Percentage Change in Operating Profit on Constant-Currency Basis |
|||
North America Retail |
|
(14) |
% |
Flat |
|
(14) |
% |
International |
|
(1) |
% |
19 |
pts |
(20) |
% |
North America Pet |
|
(20) |
% |
Flat |
|
(20) |
% |
North America Foodservice |
|
1 |
% |
Flat |
|
1 |
% |
Total segment operating profit |
|
(13) |
% |
Flat |
|
(13) |
% |
|
|
||||||
|
|
Nine-Month Period Ended Feb. 23, 2025 |
|||||
|
|
Percentage Change in Operating Profit as Reported |
Impact of Foreign Currency Exchange |
Percentage Change in Operating Profit on Constant-Currency Basis |
|||
North America Retail |
|
(6) |
% |
Flat |
|
(6) |
% |
International |
|
(39) |
% |
11 |
pts |
(50) |
% |
North America Pet |
|
6 |
% |
Flat |
|
6 |
% |
North America Foodservice |
|
15 |
% |
Flat |
|
15 |
% |
Total segment operating profit |
|
(5) |
|
Flat |
|
(5) |
% |
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 Feb. 23, 2025 |
|
(19) |
% |
(5) |
pts |
(14) |
% |
Nine-Month Period Ended Feb. 23, 2025 |
|
(7) |
% |
(3) |
pts |
(4) |
% |
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 |
|
Nine-Month Period Ended |
||||||||||||||||||||||||
|
Feb. 23, 2025 |
|
Feb. 25, 2024 |
|
Feb. 23, 2025 |
|
Feb. 25, 2024 |
||||||||||||||||||||
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 |
$ |
769.0 |
|
$ |
152.4 |
|
|
$ |
807.6 |
|
$ |
149.3 |
|
|
$ |
2,457.9 |
|
$ |
504.6 |
|
|
$ |
2,351.7 |
|
$ |
458.5 |
|
Divestiture gain |
|
(95.9 |
) |
|
(11.1 |
) |
|
|
- |
|
|
- |
|
|
|
(95.9 |
) |
|
(11.1 |
) |
|
|
- |
|
|
- |
|
Transaction costs |
|
24.0 |
|
|
5.6 |
|
|
|
- |
|
|
- |
|
|
|
32.9 |
|
|
7.6 |
|
|
|
0.6 |
|
|
- |
|
Mark-to-market effects |
|
(23.2 |
) |
|
(5.4 |
) |
|
|
25.7 |
|
|
6.0 |
|
|
|
(23.8 |
) |
|
(5.5 |
) |
|
|
5.9 |
|
|
1.4 |
|
Acquisition integration costs |
|
3.3 |
|
|
0.7 |
|
|
|
- |
|
|
- |
|
|
|
7.2 |
|
|
1.6 |
|
|
|
0.2 |
|
|
0.1 |
|
Investment activity, net |
|
1.7 |
|
|
0.4 |
|
|
|
2.7 |
|
|
2.2 |
|
|
|
4.9 |
|
|
1.1 |
|
|
|
25.2 |
|
|
7.4 |
|
Restructuring (recoveries) charges |
|
(0.6 |
) |
|
(0.1 |
) |
|
|
5.9 |
|
|
(1.2 |
) |
|
|
3.6 |
|
|
0.9 |
|
|
|
30.5 |
|
|
8.0 |
|
Project-related costs |
|
0.2 |
|
|
- |
|
|
|
0.5 |
|
|
0.1 |
|
|
|
0.4 |
|
|
0.1 |
|
|
|
1.6 |
|
|
0.5 |
|
Goodwill impairment |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
117.1 |
|
|
34.7 |
|
Product recall, net |
|
- |
|
|
- |
|
|
|
(31.1 |
) |
|
(7.2 |
) |
|
|
- |
|
|
- |
|
|
|
(30.7 |
) |
|
(7.1 |
) |
As adjusted |
$ |
678.4 |
|
$ |
142.5 |
|
|
$ |
811.3 |
|
$ |
149.4 |
|
|
$ |
2,387.2 |
|
$ |
499.4 |
|
|
$ |
2,502.1 |
|
$ |
503.6 |
|
Effective tax rate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
As reported |
|
|
|
19.8 |
% |
|
|
|
|
18.5 |
% |
|
|
|
|
20.5 |
% |
|
|
|
|
19.5 |
% |
||||
As adjusted |
|
|
|
21.0 |
% |
|
|
|
|
18.4 |
% |
|
|
|
|
20.9 |
% |
|
|
|
|
20.1 |
% |
||||
Sum of adjustments to income taxes |
|
|
$ |
(9.9 |
) |
|
|
|
$ |
0.1 |
|
|
|
|
$ |
(5.2 |
) |
|
|
|
$ |
45.1 |
|
||||
Average number of common shares - diluted EPS |
|
|
|
555.0 |
|
|
|
|
|
572.8 |
|
|
|
|
|
559.8 |
|
|
|
|
|
582.5 |
|
||||
Impact of income tax adjustments on adjusted diluted EPS |
|
|
$ |
0.02 |
|
|
|
|
$ |
- |
|
|
|
|
$ |
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/20250318019954/en/
(Investors) Jeff Siemon: +1-763-764-2301
(Media) Chelcy Walker: +1-763-764-6364
Source: General Mills, Inc.