$GIS (-0,34%) 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.
