General Mills, Inc. · NYSE:GIS
General Mills — Q3 2025 Earnings Presentation
49 slides from General Mills's earnings presentation, Mar 19, 2025
Slide 1: Fiscal 2025 Q3 Earnings
Fiscal 2025 Q3 Earnings March 19, 2025 General Mills Third-quarter Fiscal 2025 1
Slide 2: A Reminder on Forward-looking Statements
A Reminder on Forward-looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management’s current expectations and assumptions. These forward-looking statements are subject to certain risks
Slide 3: Jeff Harmening
Jeff Harmening Chairman and Chief Executive Officer General Mills Third-quarter Fiscal 2025 3
Slide 4: Today's Key Messages
Today’s Key Messages • Q3 Results Below Expectations, Driven Largely by Retailer Inventory Headwinds and a Slowdown in Snacking Categories • Positive Market Share in Pet, Foodservice, and International, with Mixed Results in N.A. Retail • Revising F25 Guidance to Reflect Q3 Results and Moderated Exp
Slide 5: Third-quarter and YTD Fiscal 2025 Performance
Third-quarter and YTD Fiscal 2025 Performance F25 Q3 F25 YTD Headwinds in F25 Q3 Actual Actual • Retailer Inventory Depletion in Organic Net Sales¹ -5% -1% N.A. Retail and N.A. Pet; Retail Sales Declined ~1% across Measured Markets Adjusted • Retail Sales Deceleration in U.S. Snacks, Op. -13% -3% Re
Slide 6: Status Update on Fiscal 2025 Priorities
Status Update on Fiscal 2025 Priorities Accelerate Improve Competitiveness by 1 Organic Sales Delivering Remarkable Experiences Across Our Portfolio Generate HMM Cost Savings to Create Fuel 2 for Investment Offset Inflation and Accelerate Brand Investment Drive Strong Continue Robust Cash Conversion
Slide 7: Remarkable Experience Framework
F25 Priority 1 Remarkable Experience Framework Superior Package Brand Omnichannel Compelling Product Design Communication Execution Value Consumers’ Brand of Choice General Mills Third-quarter Fiscal 2025 7
Slide 8: Improved U.S. Refrigerated Dough Trends in Q3
F25 Priority 1 Improved U.S. Refrigerated Dough Trends in Q3 Improving Expanding Accelerating Cookie Increasing Brand Value Product News Momentum Building General Mills U.S. Refrigerated Dough Retail Pound Volume (% vs. LY) 10% 1% -2% -2% -2% -6% -3% F24 F25 Q1 F25 Sep F25 Oct F25 F25 Jan F25 Feb No
Slide 9: Improved U.S. Hot Snacks Trends in Q3
F25 Priority 1 Improved U.S. Hot Snacks Trends in Q3 Communicating Activating Improving Affordability Merchandising Plans Shelf Execution General Mills U.S. Hot Snacks Retail Pound Volume (% vs. LY) 3% -2% -2% -3% -6% -10% -7% F24 F25 Q1 F25 Sep F25 Oct F25 F25 Jan F25 Feb Nov/Dec Source: NIQ xAOC G
Slide 10: Strong Plans Expected to Improve Momentum on U.S. Cereal in Q4
F25 Priority 1 Strong Plans Expected to Improve Momentum on U.S. Cereal in Q4 Delivering Great-tasting & Leveraging Increasing Affordable Protein Cereals Brand Partnerships Media Investment Exceeding Expectations on Partnering with Retailers to Cheerios Protein and Execute Q4 On-pack Promotion Q4 Me
Slide 11: Strong Plans on U.S. Soup in Q4
F25 Priority 1 Strong Plans on U.S. Soup in Q4 Continuing Strong ROI Doubling Down on Taste Launching from Advertising & Protein Core News Exciting Innovation 16g Protein 20g 14g Protein Protein 55+ Consumer Advertising Amplify Taste and Protein Q4 Launch Old El Paso Soups & Progresso Protein Genera
Slide 12: Delivering Value and Bringing News to Improve U.S. Snacks Portfolio Performance
F25 Priority 1 Delivering Value and Bringing News to Improve U.S. Snacks Portfolio Performance Launching New Products Bringing Exciting Enhancing Value & Core News New Equities Innovating on Opening Price Amplifying Taste Driving News with Point and Value-size Offerings + Protein + Health Fruit Shap
Slide 13: Improved Pound Competitiveness in North America Pet in Q3
F25 Priority 1 Improved Pound Competitiveness in North America Pet in Q3 General Mills % Business Holding or Growing Pound Share 100% 100% N.A. Pet FYTD Q3 Source: NIQ Pet Retail Plus F25 Q3 General Mills Third-quarter Fiscal 2025 13
Slide 14: Improved Pound Competitiveness in North America Foodservice in Q3
F25 Priority 1 Improved Pound Competitiveness in North America Foodservice in Q3 General Mills % Priority Business Holding or Growing Pound Share 73% 55% N.A. Foodservice FYTD Q3 Source: Circana SupplyTrack, F25 Q3 QTD through January Priority Business defined as Global Platforms/Local Gems in N.A.
Slide 15: Improved Pound Competitiveness in International in Q3
F25 Priority 1 Improved Pound Competitiveness in International in Q3 General Mills % Priority Business Holding or Growing Pound Share 64% 59% International FYTD Q3 Source: NIQ through January for Brazil, data through February for all remaining markets Priority Business defined as Global Platforms/Lo
Slide 16: Create Fuel for Investment
F25 Priority 2 Create Fuel for Investment Elevated HMM Savings in F25 General Mills HMM Cost Savings as % of COGS 6% 5% Long-term trend 4% 3% 3% F10 - F21 F22 F23 F24 F25 Outlook Average General Mills Third-quarter Fiscal 2025 16
Slide 17: Drive Strong Cash Generation
F25 Priority 3 Drive Strong Cash Generation Priorities Fiscal 2025 Plans CAPEX ~3.5% of Net Sales Dividend Growth 2% Dividend Increase as of Aug. 1, 2024 Near-term Focus on Executing Previously Announced Projects M&A Retain Flexibility for Strategic Acquisitions Share Repurchases Update: ~4% Reducti
Slide 18: F26 Preview: Taking Action to Improve Competitiveness and Accelerate Organic Sales Growth
F25 Priority F25 Priority F26 Preview: Taking Action to Improve Competitiveness and Accelerate Organic Sales Growth Increasing Investment in Innovation, Brand Communication, and Value in F26 to Deliver More Remarkable Experiences for Consumers Accelerating HMM Cost Savings: Expect to deliver at leas
Slide 19: Kofi Bruce
Kofi Bruce Chief Financial Officer General Mills Third-quarter Fiscal 2025 19
Slide 20: Third-quarter Fiscal 2025 Financial Results
Third-quarter Fiscal 2025 Financial Results Q3 Total General Mills $MM vs. LY Net Sales $4,842 -5% Organic Net Sales1 -5% Adjusted Operating Profit1 $801 -13%2 Adjusted Diluted EPS1 $1.00 -15%2 1) Non-GAAP measures. See appendix for reconciliation 2) Growth rates in constant currency. Non-GAAP mea
Slide 21: Components of Third-quarter Net Sales Growth
Components of Third-quarter Net Sales Growth -5% Organic Net Sales1 +1 pt -1 pt -1 pt -4 pts -5% Organic Organic Foreign Acquisitions & Total Net Sales Volume Price / Mix Exchange Divestitures as Reported 1) Non-GAAP measure General Mills Third-quarter Fiscal 2025 21
Slide 22: Third-quarter Fiscal 2025 North America Retail
Third-quarter Fiscal 2025 North America Retail North America Retail Q3 YTD • Q3 organic net sales lagged Nielsen-measured U.S. retail sales³ by ~4pts, driven mainly by unexpected Organic Net Sales¹ -6% -2% retailer inventory headwinds and an expected Segment Op. Profit² -14% -6% reversal of Q2 timin
Slide 23: Third-quarter Fiscal 2025 North America Pet
Third-quarter Fiscal 2025 North America Pet North America Pet Q3 YTD • Q3 organic net sales lagged all-channel retail sales performance3 by ~5pts, primarily reflecting a decline in Organic Net Sales¹ -5% Flat retailer inventory Segment Op. Profit² -20% +6% • Closed on N.A. Whitebridge Pet Brands acq
Slide 24: Third-quarter Fiscal 2025 North America Foodservice
Third-quarter Fiscal 2025 North America Foodservice North America Foodservice Q3 YTD • Q3 organic net sales driven by positive price/mix, partially offset by lower pound volume Organic Net Sales¹ +1% +3% Segment Op. Profit² +1% +15% • Net sales led by strong growth on cereal and breads, partially of
Slide 25: Third-quarter Fiscal 2025 International
Third-quarter Fiscal 2025 International International Q3 YTD • Q3 net sales decline driven by China and Brazil, partially offset by growth in Distributor markets and Organic Net Sales¹ -3% -2% Europe & Australia Segment Op. Profit² -20% -50% • Q3 market share growth in Europe & Australia and Brazil³
Slide 26: Third-quarter Fiscal 2025 Joint Ventures
Third-quarter Fiscal 2025 Joint Ventures Q3 AFTER-TAX JV EARNINGS: $14MM, -16%¹ vs. LY • Q3 CPW net sales driven by decline in the U.K., Net Sales² Q3 YTD partially offset by growth in Asia and Latin Cereal Partners Worldwide -1% Flat America Häagen-Dazs Japan +10% +3% • Q3 HDJ net sales growth driv
Slide 27: Third-quarter Fiscal 2025 Margin Results
Third-quarter Fiscal 2025 Margin Results Adjusted Gross Margin1 Adjusted Operating Profit Margin1 (% of Net Sales) (% of Net Sales) 34.0% 33.4% 17.9% 16.5% F24 Q3 F25 Q3 F24 Q3 F25 Q3 • Q3 Adj. Gross Margin decrease driven by input cost inflation, unfavorable price/mix, and supply chain deleverage,
Slide 28: Third-quarter Fiscal 2025 Other Income Statement Items
Third-quarter Fiscal 2025 Other Income Statement Items • Adjusted Unallocated Corporate Expenses Decreased $16MM vs. LY • Net Interest Expense Increased $15MM vs. LY • Adjusted Effective Tax Rate 21.0%, +260bps vs. LY¹ • Average Diluted Shares Outstanding -3% vs. LY 1) Non-GAAP measure. See appendix
Slide 29: Nine-month Fiscal 2025 Financial Results
Nine-month Fiscal 2025 Financial Results NINE MONTHS Total General Mills $MM vs. LY Net Sales $14,930 -1% Organic Net Sales1 -1% Adjusted Operating Profit1 $2,730 -3%2 Adjusted Diluted EPS1 $3.47 -1%2 1) Non-GAAP measures. See appendix for reconciliation 2) Growth rates in constant currency. Non-GA
Slide 30: Nine-month Fiscal 2025 Cash Flow
Nine-month Fiscal 2025 Cash Flow Operating Cash Flow ($ in Millions) Capital Investments $405MM $2,439 $2,307 Dividends Paid $1,008MM Net Share Repurchases F24 F25 $864MM General Mills Third-quarter Fiscal 2025 30
Slide 31: Fiscal 2025 Q4 Expectations
Fiscal 2025 Q4 Expectations • Underlying Sales Trends Similar to Q3, Excluding Retailer Inventory and Timing Impacts; Retailer Inventory Expected to be Neutral in Q4 • Trade Expense Phasing a 1.5-point Headwind to Enterprise Net Sales and a 9-point Headwind to Op. Profit in Q4, Primarily in NAR • Co
Slide 32: Updated Fiscal 2025 Financial Outlook
Updated Fiscal 2025 Financial Outlook Key Financial Metrics¹ Previous F25 Outlook Revised F25 Outlook Organic Net Sales Growth Flat -2% to -1.5% Adjusted Operating Profit Growth² -4% to -2% -8% to -7% Adjusted Diluted EPS Growth² -4% to -2% -8% to -7% Free Cash Flow Conversion 95%+ 95%+ Due to conti
Slide 33: Today's Key Messages
Today’s Key Messages • Q3 Results Below Expectations, Driven Largely by Retailer Inventory Headwinds and a Slowdown in Snacking Categories • Positive Market Share in Pet, Foodservice, and International, with Mixed Results in N.A. Retail • Revising F25 Guidance to Reflect Q3 Results and Moderated Exp
Slide 34: A Reminder on Non-GAAP Guidance
A Reminder on Non-GAAP Guidance Our fiscal 2025 outlook for organic net sales growth, adjusted operating profit, 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
Slide 35: Appendix: Third-quarter Fiscal 2025 North America Retail Operating Unit Results
Appendix: Third-quarter Fiscal 2025 North America Retail Operating Unit Results Net Sales % vs. LY Operating Unit Q3 U.S. Morning Foods -10% U.S. Snacks -6% U.S. Meals & Baking Solutions -3% Canada -19% Canada Constant-currency¹ -14% 1) Net sales growth in constant currency. Non-GAAP measure. See ap
Slide 36: Reconciliation of Third-quarter Fiscal 2025 Canada Operating Unit Constant-currency Net Sales Growth
Reconciliation of Third-quarter Fiscal 2025 Canada Operating Unit Constant-currency Net Sales Growth General Mills Third-quarter Fiscal 2025 36
Slide 37: Reconciliation of Third-quarter Fiscal 2025 Organic Net Sales Growth
Reconciliation of Third-quarter Fiscal 2025 Organic Net Sales Growth *Table may not foot due to rounding General Mills Third-quarter Fiscal 2025 37
Slide 38: Reconciliation of Nine-month Fiscal 2025 Organic Net Sales Growth
Reconciliation of Nine-month Fiscal 2025 Organic Net Sales Growth *Table may not foot due to rounding General Mills Third-quarter Fiscal 2025 38
Slide 39: Reconciliation of Third-quarter Fiscal 2025 Adjusted Operating Profit Constant-currency Compound Growth Rate
Reconciliation of Third-quarter Fiscal 2025 Adjusted Operating Profit Constant-currency Compound Growth Rate (Fiscal Years, $ in Millions) *Table may not foot due to rounding General Mills Third-quarter Fiscal 2025 39
Slide 40: Reconciliation of Nine-month Fiscal 2025 Adjusted Operating Profit Constant-currency Growth Rate
Reconciliation of Nine-month Fiscal 2025 Adjusted Operating Profit Constant-currency Growth Rate (Fiscal Years, $ in Millions) *Table may not foot due to rounding General Mills Third-quarter Fiscal 2025 40
Slide 41: Reconciliation of Third-quarter Fiscal 2025 Adjusted Diluted EPS and Related Constant-currency Growth Rates
Reconciliation of Third-quarter Fiscal 2025 Adjusted Diluted EPS and Related Constant-currency Growth Rates (Fiscal Years) *Table may not foot due to rounding **See reconciliation of tax rate items for tax impact of individual items General Mills Third-quarter Fiscal 2025 41
Slide 42: Reconciliation of Nine-month Fiscal 2025 Adjusted Diluted EPS and Related Constant-currency Growth Rates
Reconciliation of Nine-month Fiscal 2025 Adjusted Diluted EPS and Related Constant-currency Growth Rates (Fiscal Years) *Table may not foot due to rounding **See reconciliation of tax rate items for tax impact of individual items General Mills Third-quarter Fiscal 2025 42
Slide 43: Reconciliation of Third-quarter Fiscal 2025 Constant-currency Segment Operating Profit Growth
Reconciliation of Third-quarter Fiscal 2025 Constant- currency Segment Operating Profit Growth *Table may not foot due to rounding General Mills Third-quarter Fiscal 2025 43
Slide 44: Reconciliation of Nine-month Fiscal 2025 Constant-currency Segment Operating Profit Growth
Reconciliation of Nine-month Fiscal 2025 Constant-currency Segment Operating Profit Growth *Table may not foot due to rounding General Mills Third-quarter Fiscal 2025 44
Slide 45: Third-quarter Fiscal 2025 Constant-currency After-tax Earnings from Joint Ventures Growth Rates
Third-quarter Fiscal 2025 Constant-currency After-tax Earnings from Joint Ventures Growth Rates *Table may not foot due to rounding General Mills Third-quarter Fiscal 2025 45
Slide 46: Reconciliation of Third-quarter Fiscal 2025 Adjusted Gross Margin
Reconciliation of Third-quarter Fiscal 2025 Adjusted Gross Margin (Fiscal Years) *Table may not foot due to rounding General Mills Third-quarter Fiscal 2025 46
Slide 47: Reconciliation of Third-quarter Fiscal 2025 Adjusted Operating Profit Margin
Reconciliation of Third-quarter Fiscal 2025 Adjusted Operating Profit Margin (Fiscal Years, $ in Millions) *Table may not foot due to rounding General Mills Third-quarter Fiscal 2025 47
Slide 48: Reconciliation of Third-quarter Fiscal 2025 Adjusted Tax Rate
Reconciliation of Third-quarter Fiscal 2025 Adjusted Tax Rate (Fiscal Years, $ in Millions except Per Share Data) *Table may not foot due to rounding a) Earnings before income taxes and after-tax earnings from joint ventures General Mills Third-quarter Fiscal 2025 48
Slide 49: Reconciliation of Nine-month Adjusted Tax Rate
Reconciliation of Nine-month Adjusted Tax Rate (Fiscal Years, $ in Millions except Per Share Data) *Table may not foot due to rounding a) Earnings before income taxes and after-tax earnings from joint ventures General Mills Third-quarter Fiscal 2025 49