Financial Performance - In the second quarter of fiscal 2025, net sales increased by 2% to $5,240.1 million, while organic net sales grew by 1% compared to the same period last year [100]. - Operating profit for the second quarter rose by 33% to $1,078 million, with an operating profit margin of 20.6%, an increase of 480 basis points [100]. - Diluted earnings per share increased by 39% to $1.42, while adjusted diluted earnings per share rose by 12% on a constant-currency basis to $1.40 [100]. - For the six-month period ended November 24, 2024, net sales were flat at $10,088.2 million, with organic net sales growth also flat [114]. - Segment operating profit decreased by 3% to $1,608 million for the six-month period ended November 24, 2024, compared to $1,658 million in the same period in fiscal 2024 [132]. - The operating profit as reported for the quarter ended November 24, 2024, was $1,077.9 million, representing a 20.6% margin compared to $811.8 million and 15.8% margin for the same quarter in 2023 [187]. - Adjusted operating profit for the six-month period ended November 24, 2024, was $1,929.3 million, or 19.1% of net sales, compared to $1,888.4 million and 18.8% for the same period in 2023 [187]. - Adjusted operating profit for the same quarter was $1,064.0 million, reflecting an 8% growth compared to $989.4 million in the prior year [190]. - After-tax earnings from joint ventures increased to $30 million, a 25% rise compared to $24 million in the same period last year [111]. - After-tax earnings from joint ventures increased to $49 million for the six-month period ended November 24, 2024, compared to $48 million in the same period in fiscal 2024, reflecting a 5% increase on a constant-currency basis [124]. Expenses and Costs - SG&A expenses increased by $22 million to $852 million, primarily due to higher compensation and benefits expenses and the addition of a pet food business in Europe [106]. - Cost of sales decreased by $64 million to $3,309 million, driven by a reduction in product rate and mix [105]. - SG&A expenses increased by $37 million to $1,707 million for the six-month period ended November 24, 2024, primarily due to higher compensation and benefits expenses [119]. - Cost of sales decreased by $39 million to $6,468 million for the six-month period ended November 24, 2024, compared to the same period in fiscal 2024 [118]. - Restructuring, impairment, and other exit costs totaled $3 million for the six-month period ended November 24, 2024, a significant decrease from $125 million in the same period last year [120]. Tax and Earnings - The effective tax rate for the second quarter of fiscal 2025 was 20.1%, up from 19.0% in the same period last year [109]. - The effective tax rate for the six-month period ended November 24, 2024, was 20.9%, an increase from 20.0% in the same period last year [122]. - The effective tax rate as reported was 20.1% for the quarter, compared to 19.0% in the same quarter last year [203]. Cash Flow and Debt - Cash provided by operations was $1,775 million for the six-month period ended November 24, 2024, compared to $1,496 million in the same period last year, reflecting a $279 million increase [158]. - Cash used by investing activities was $306 million for the six-month period ended November 24, 2024, compared to $316 million in the same period last year [159]. - As of November 24, 2024, the company had $442 million of cash and cash equivalents in foreign jurisdictions [161]. - The company had $1,822 million of long-term debt maturing in the next 12 months, including $800 million of fixed-rate notes due April 17, 2025 [164]. - Total committed and uncommitted credit facilities available as of November 24, 2024, amounted to $3.4 billion [162]. Market Performance - North America Retail net sales decreased by 1% in the six-month period ended November 24, 2024, driven by a decrease in contributions from volume growth [127]. - International net sales increased by 1% in the six-month period ended November 24, 2024, driven by an increase in contributions from volume growth [135]. - North America Pet net sales increased 5% to $595.8 million in Q2 fiscal 2025 compared to $569.3 million in Q2 fiscal 2024, driven by volume growth [141]. - North America Foodservice net sales rose 8% to $630.0 million in Q2 fiscal 2025, compared to $582.0 million in Q2 fiscal 2024, driven by volume growth and favorable net price realization [148]. Strategic Focus - The company plans to focus on product innovation and brand-building investments in fiscal 2025 to drive volume performance [99]. - The company expects to generate higher levels of Holistic Margin Management (HMM) cost savings to offset input cost inflation in fiscal 2025 [99]. - The company is committed to strategic revenue management to enhance net price realization and optimize product mix [224]. - The company is actively engaged in product development and innovation to meet changing consumer demands [231]. - Future results may be influenced by supply chain disruptions, competitive dynamics, and consumer acceptance of new products [231]. Risk Management - The company emphasizes the importance of managing risks related to interest rates, foreign exchange, commodities, and equity markets [233]. - The estimated maximum potential value-at-risk for interest rate instruments is $47 million, reflecting a decrease of $6 million due to lower interest rates [234]. - The foreign currency instruments show a potential loss of $37 million, with an increase of $7 million attributed to a rise in portfolio basis [234]. - Commodity instruments have a potential loss of $4 million, with a minor change of $1 million [234]. - Equity instruments indicate a potential loss of $2 million, with no significant change reported [234].

Core Insights - General Mills, Inc. (GIS) reported strong second-quarter fiscal 2025 results, with both top and bottom lines exceeding Zacks Consensus Estimates [1][3][4] Financial Performance - Adjusted earnings per share (EPS) reached $1.40, surpassing the Zacks Consensus Estimate of $1.22, reflecting a 12% year-over-year growth on a constant-currency basis [3] - Net sales amounted to $5,240.1 million, exceeding the Zacks Consensus Estimate of $5,157 million, with a 2% year-over-year increase driven by higher pound volume [4] - Adjusted gross margin expanded by 130 basis points to 36.3%, supported by cost savings from Holistic Margin Management, despite input cost inflation [5] - Adjusted operating profit was $1,064 million, a 7% increase at constant currency, with the operating profit margin growing by 100 basis points to 20.3% [5] Segment Performance - North America Retail segment revenues were flat at $3,321.5 million, with organic net sales rising 1% [6] - International segment revenues increased by 1% to $690.6 million, but organic net sales fell by 3% due to challenges in Brazil and China [7] - North America Pet segment revenues grew by 5% to $595.8 million, with a 36% increase in operating profit [8] - North America Foodservice segment revenues advanced by 8% to $630 million, with organic net sales also jumping 8% [9] Cash Flow and Investments - General Mills generated $1,774.7 million in cash from operating activities in the first half of fiscal 2025, with capital investments of $301 million [11] - The company paid out $676 million in dividends and repurchased nearly 9 million shares for $600 million during the same period [12] Future Outlook - For fiscal 2025, organic net sales are expected to range from flat to a 1% increase, with management adjusting guidance due to higher promotional investments [15] - Adjusted operating profit is anticipated to decline by 4-2% at constant currency, with adjusted EPS expected to decline by 3-1% [16] - The company aims for a free cash flow conversion of at least 95% of adjusted after-tax earnings [16]

Core Insights - General Mills reported revenue of $5.24 billion for the quarter ended November 2024, marking a year-over-year increase of 2% and exceeding the Zacks Consensus Estimate by 1.61% [1] - The company's EPS for the same period was $1.40, up from $1.25 a year ago, representing a surprise of 14.75% over the consensus estimate of $1.22 [1] Revenue Performance - North America Foodservice net sales reached $630 million, surpassing the estimated $599.50 million, reflecting an 8.3% increase year-over-year [3] - International net sales were $690.60 million, slightly below the estimated $713.92 million, with a year-over-year change of 1.1% [3] - North America Pet net sales totaled $595.80 million, exceeding the average estimate of $566.81 million, showing a 4.7% increase year-over-year [3] - North America Retail net sales were $3.32 billion, slightly above the estimated $3.29 billion, with a year-over-year change of 0.5% [3] Operating Profit Analysis - North America Retail operating profit was $862.30 million, exceeding the average estimate of $833.27 million [3] - International operating profit was reported at $23.80 million, below the estimated $30.31 million [3] - North America Pet operating profit reached $139.30 million, surpassing the average estimate of $110.71 million [3] - North America Foodservice operating profit was $118.50 million, exceeding the estimated $97.52 million [3] Stock Performance - General Mills shares have returned +5% over the past month, outperforming the Zacks S&P 500 composite's +3.2% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]

Financial Data and Key Metrics Changes - Organic net sales increased by 1% in Q2 2025, with adjusted operating profit up 7% in constant currency and adjusted diluted EPS up 12% in constant currency [8][34] - Reported net sales reached $5.2 billion, reflecting a 2% increase, while adjusted operating profit totaled $1.1 billion [34] - The Q2 results benefited from timing-related items, contributing approximately 1.5 percentage points to net sales and 6 points to operating profit and EPS, which are expected to reverse in the second half [9][35] Business Line Data and Key Metrics Changes - North America Retail organic net sales were up 1%, with U.S. Morning Foods increasing by 4% and U.S. Snacks up by 1%, while U.S. Meals & Baking Solutions declined by 1% [38] - North America Pet segment organic net sales increased by 5%, with high-single digit growth in dry food and mid-single digit growth in wet food [40] - North America Foodservice organic net sales rose by 8%, driven by strong growth in breads, cereal, and frozen meals [42] - International segment organic net sales decreased by 3%, primarily due to declines in China and Brazil [44] Market Data and Key Metrics Changes - The company saw improvements in market share, with 56% of priority businesses growing or holding pound share and 38% growing or holding dollar share in Q2 [11] - The U.S. pet food business returned to pound share growth, with dollar share remaining flat for the first time in over two years [12][20] - Häagen-Dazs experienced share growth in retail outlets, despite challenges in China [26][44] Company Strategy and Development Direction - The company aims to accelerate organic sales growth by enhancing consumer experiences across its food brands, with a focus on volume and market share [5][10] - Plans include generating strong levels of cost savings to offset inflation and reinvest in brands, while maintaining disciplined capital allocation [10][28] - The company is pursuing bolt-on acquisitions to reshape its portfolio and improve growth profiles [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a dynamic and uncertain macroeconomic environment but believes investments in consumer value will strengthen future growth [7][57] - The company expects adjusted operating profit and diluted EPS growth to be lower than previous estimates due to increased investments [31][55] - The outlook for fiscal 2025 includes organic net sales growth expected to be flat to up 1%, with adjusted operating profit anticipated to decline by 4% to 2% in constant currency [54][55] Other Important Information - The company reported a 19% increase in first-half operating cash flow, totaling $1.8 billion, and returned $1.2 billion to shareholders through dividends and share repurchases [50] - Adjusted gross margin increased by 130 basis points to 36.3% of net sales, driven by cost savings [46] Q&A Session Summary Question: What are the expectations for the second half of fiscal 2025? - Management indicated that the second half will see a reversal of favorable timing items from Q2, impacting operating profit and EPS [35][54] Question: How is the company addressing challenges in the refrigerated dough segment? - The company is implementing product renovations and increasing media support to improve trends in the refrigerated dough category [15][17] Question: What is the outlook for the North America Pet segment? - The North America Pet segment is expected to continue its growth trajectory, supported by recent advertising and product improvements [19][22]

General Mills (GIS) came out with quarterly earnings of $1.40 per share, beating the Zacks Consensus Estimate of $1.22 per share. This compares to earnings of $1.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 14.75%. A quarter ago, it was expected that this maker of Cheerios cereal, Yoplait yogurt and other packaged foods would post earnings of $1.05 per share when it actually produced earnings of $1.07, delivering a surpr ...

Financial Performance - Net sales for the second quarter were $5.2 billion, an increase of 2 percent, with organic net sales up 1 percent[2]. - Operating profit reached $1.1 billion, up 33 percent, while adjusted operating profit increased 7 percent in constant currency[2]. - Diluted earnings per share (EPS) rose to $1.42, a 39 percent increase, with adjusted diluted EPS at $1.40, up 12 percent in constant currency[2]. - Gross margin improved by 250 basis points to 36.9 percent of net sales, driven by Holistic Margin Management (HMM) cost savings[7]. - Cash provided by operating activities totaled $1.8 billion through six months, up 19 percent from the previous year[27]. - Net earnings attributable to General Mills rose by 34% to $795.7 million in Q1 FY2025 compared to $595.5 million in Q2 FY2024[37]. - Basic earnings per share (EPS) for the quarter ended November 24, 2024, increased to $1.43 from $1.03 in the prior year, reflecting a growth of 38.83%[50]. - Diluted EPS for the same quarter rose to $1.42 from $1.02, marking an increase of 39.22%[50]. - Net earnings for the six-month period ended November 24, 2024, increased to $1,385.9 million from $1,282.6 million in the prior year, representing an 8.06% growth[47]. Segment Performance - North America Pet segment net sales increased 5 percent to $596 million, with segment operating profit up 36 percent to $139 million[17]. - North America Foodservice segment net sales grew 8 percent to $630 million, with operating profit increasing 24 percent to $118 million[19]. - International segment net sales rose 1 percent to $691 million, including a 4-point benefit from the Edgard & Cooper acquisition[21]. - North America Pet segment saw a 5% increase in net sales, reaching $595.8 million compared to $569.3 million in the prior year[41]. - Operating profit for the North America Pet segment increased by 36% to $139.3 million, up from $102.5 million year-over-year[41]. - North America Foodservice segment net sales increased by 8% to $630.0 million from $582.0 million year-over-year[41]. Outlook and Projections - The company updated its full-year fiscal 2025 outlook to reflect increased investment for improved volume and market share trends[2]. - For fiscal 2025, organic net sales are expected to range between flat and up 1%, with a focus on the lower end of the range due to increased promotional investment[29]. - Adjusted operating profit is now projected to decline between 4% and 2% in constant currency, a revision from the previous range of down 2% to flat[29]. - Adjusted diluted EPS is expected to decline between 3% and 1% in constant currency, compared to the prior range of down 1% to up 1%[29]. - Free cash flow conversion is anticipated to be at least 95% of adjusted after-tax earnings[29]. Cash Flow and Investments - Cash and cash equivalents increased significantly to $2,292.8 million from $593.8 million year-over-year[44]. - The company reported a net cash used by investing activities of $305.9 million, a slight improvement from $316.2 million in the prior year[47]. - The company entered into a definitive agreement to acquire NX Pet Holding, Inc. for approximately $1 billion, expected to close in the third quarter of fiscal 2025[49]. - The company plans to divest its North American yogurt businesses for approximately $2 billion, with expected closure in calendar year 2025[49]. Tax and Expenses - The effective tax rate for Q2 fiscal 2025 was 20.1%, up from 19.0% in Q2 fiscal 2024, primarily due to nonrecurring tax benefits in the prior year[6]. - The effective tax rate for the six-month period ended November 24, 2024, was 20.9%, compared to 20.0% for the same period in the previous year, reflecting a 0.9 percentage point increase[6]. - Unallocated corporate expenses decreased to $65 million in the second quarter of fiscal 2025 from $157 million in the same period last year, a reduction of 58.54%[50]. Adjusted Metrics - Adjusted operating profit growth on a constant-currency basis for the six-month period ended November 24, 2024, was $1,909.4 million, a 10% increase from $1,741.8 million in the same period last year[64]. - Adjusted diluted EPS for Q2 fiscal 2025 was $1.40, a 12% increase from $1.25 in Q2 fiscal 2024[66]. - The adjusted effective income tax rate was impacted by various items affecting comparability, with reconciliations provided for transparency[67]. - The company emphasizes the importance of adjusted earnings comparisons as a percent of net sales for assessing performance on a year-to-year basis[68].

In its upcoming report, General Mills (GIS) is predicted by Wall Street analysts to post quarterly earnings of $1.22 per share, reflecting a decline of 2.4% compared to the same period last year. Revenues are forecasted to be $5.16 billion, representing a year-over-year increase of 0.5%.The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates durin ...

The market expects General Mills (GIS) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended November 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be releas ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED AUGUST 25, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file number: 001-01185 ________________ GENERAL MILLS, INC. (Exact name of registrant as specified in its charter) Delaware 41-02 ...

General Mills, Inc. (GIS) posted first-quarter fiscal 2025 results, wherein the top and bottom lines came ahead of the Zacks Consensus Estimate, while both metrics declined year over year. Results were hurt by the adverse net price realization and mix.General Mills’ primary focus for fiscal 2025 is on fueling organic net sales growth, and the company progressed well toward that goal in the first quarter. GIS solidified its core by providing consumers with more exceptional experiences, resulting in improved ...