$GIS (-1,39 %)

🔹 Adj. EPS: $1.00 (Est. $0.97) 🟢

🔹 Revenue: $4.84B (Est. $4.97B) 🔴 (-5% YoY)

🔹 Organic Net Sales: -5% (Est. -2.67%) 🔴

🔹 Oper. Profit: $891M (-2% YoY)

Cuts FY25 Guidance:

🔹 Organic Net Sales: -1.5% to -2.0% (Prev. 0% to +1%) 🔴

🔹 Adj. EPS (Constant FX): Now -7% to -8% (Prev. -1% to -3%) 🔴

🔹 Free Cash Flow Conversion: Expected at least 95% of adj. after-tax earnings

Key Takeaways & Commentary

🔹 Missed revenue estimates & cut guidance, reflecting weaker demand and retailer inventory reductions.

🔹 Higher competition from private labels, particularly in snacking & foodservice categories.

🔹 Pet segment & Pillsbury refrigerated dough saw improvements but were offset by softness in other key categories.

🔹 Cost savings efforts (HMM productivity & new initiatives) expected to fund growth investments in FY26.

$GIS (-1,39 %) In Q2 FY25, General Mills achieved modest revenue growth of 2%, propelled by volume increases in Foodservice and Pet segments. The company’s strategic investments, despite pressuring profit outlooks, aim for long-term volume and market share sustainability.

📊 Income Statement Highlights (YoY):

▫️ Net Income: $795.7M vs $595.5M (+34%)

▫️ Total Revenue: $5.24B vs $5.14B (+2%)

▫️ Adjusted EPS: $1.40 vs $1.25 (+12%)

▫️ Gross Margin: 36.9% vs 34.4% (+250 bps)

▫️ Operating Income: $1.08B vs $811.8M (+33%)

▫️ Adjusted Operating Margin: 20.3% vs 19.3% (+100 bps)

▫️ North America Retail Revenue: $3.32B (flat YoY)

▫️ North America Pet Revenue: $596M (+5%)

▫️ Foodservice Revenue: $630M (+8%)

▫️ International Revenue: $691M (+1%)

Special Metrics:

▫️ Holistic Margin Management (HMM) savings and reduced supply chain costs drove operating efficiency.

▫️ Adjusted Tax Rate: 20.1% (down from 20.8%).

▫️ Joint Ventures: After-tax earnings rose 24% to $30M.

💼 Balance Sheet Highlights (YoY):

▫️ Total Assets: $33.40B vs $31.23B (+7%)

▫️ Cash & Cash Equivalents: $2.29B vs $593.8M (+286%)

▫️ Total Liabilities: $23.95B vs $21.60B (+11%)

▫️ Equity: $9.20B vs $9.38B (-2%)

▫️ Inventory Decrease: $1.97B (-9%)

🔮 Future Outlook:

▫️ General Mills projects FY25 organic net sales growth at the lower end of flat to +1%.

▫️ Adjusted EPS to decline 3%-1%, reflecting increased marketing and promotional investments.

▫️ The company is bolstering consumer value and brand loyalty to achieve sustainable growth in FY26 and beyond.