Slide 1: Fiscal 2024 Q4 Earnings
Fiscal 2024 Q4 Earnings June 26, 2024 General Mills Fiscal 2024 Fourth Quarter
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 our current expectations and assumptions. These forward-looking statements are subject to certain risks and unce
Slide 3: Jeff Harmening, Chairman and Chief Executive Officer
Jeff Harmening Chairman and Chief Executive Officer General Mills Fiscal 2024 Fourth Quarter
Slide 4: Today's Key Messages
Today’s Key Messages • F24 Results Met Our Updated Annual Guidance • Our Top Priority in F25 is to Accelerate Organic Net Sales Growth • Targeting Strong HMM Cost Savings in F25 to Fuel Increased Brand Investment and Drive Improved Market Share General Mills Fiscal 2024 Fourth Quarter 4
Slide 5: Fiscal 2024 Full-year Performance
Fiscal 2024 Full-year Performance Organic Net Sales Adjusted Op. Adjusted Diluted Growth¹ Profit Growth² EPS Growth² -1% +4% +6% 2-yr CGR3 +4% 2-yr CGR3 +6% 2-yr CGR3 +8% • F24 results moderated versus DD% growth in F23 and met or exceeded our updated full-year F24 guidance • 2-year performance in l
Slide 6: Our Fiscal 2024 Priorities
Our Fiscal 2024 Priorities Continue to Leverage Advantaged Capabilities 1 Compete Effectively to Adapt to New Environment Improve Supply Chain Drive HMM Cost Savings and 2 Efficiency Reduce Disruption-related Costs Maintain Capital Invest in the Business, Return Cash 3 Allocation Discipline to Share
Slide 7: Brand-building, Innovation, and In-store Initiatives Drove Improved Trends
F24 Priority 1 Brand-building, Innovation, and In-store Initiatives Drove Improved Volume and Market Share Trends in 2H Increased Consumer Strengthened Expanded Share of Investment Innovation Pressure Distribution Cereal Grain Snacks Fruit Snacks Ref. Dough Yogurt Desserts F24 Media Spend ~40% More
Slide 8: Improved Supply Chain Efficiency
F24 Priority 2 Improved Supply Chain Efficiency Accelerated HMM Cost Savings Key Drivers General Mills HMM Cost Savings (as % of COGS) Reduced Supply Chain Disruptions 6% 4% Internalized Manufacturing 3% 3% Re-adjusted Formulas Optimized Logistics F10 - F21 F22 F23 F24 Leveraged Supply Cha
Slide 9: Maintained Capital Allocation Discipline
F24 Priority 3 Maintained Capital Allocation Discipline Invested for Growth Continued to Reshape Returned Cash to and Cost Savings Our Portfolio Shareholders Dividends Paid + Net Share Repurchases ($ in Billions) $3.3 $2.5 F24 Capex Edgard & Cooper F23 F24 4% of Net Sales Acquired April 2024 General
Slide 10: Progress on Standing for Good in F24
F24 Priority Progress on Standing for Good in F24 Regenerative Climate Packaging Agriculture 500,000+ acres enrolled 51% reduction in owned 93% of our packaging in regenerative agriculture operations (Scopes 1 and 2); recyclable or reusable by programs 7% reduction across the full weight* value chai
Slide 11: An Evolving Operating Environment in F25
An Evolving Operating Environment in F25 Value-seeking Behaviors Continued Inflation Supply Chain Stabilization General Mills Fiscal 2024 Fourth Quarter 11
Slide 12: Our Fiscal 2025 Priorities
Our Fiscal 2025 Priorities Accelerate 1 Organic Sales Improve Competitiveness by Delivering Remarkable Experiences Across Our Portfolio Create Fuel Generate HMM Cost Savings to Offset 2 for Investment Inflation and Accelerate Brand Investment Drive Strong Continue Robust Cash Conversion and 3 Cash G
Slide 13: Creating Remarkable Experiences
F25 Priority 1 Creating Remarkable Experiences Brand Superior Compelling Omnichannel Package Communication Product Value Execution Design Consumers’ Brand of Choice General Mills Fiscal 2024 Fourth Quarter 13
Slide 14: Modern Brand Communication
F25 Priority 1 Modern Brand Communication Significant Increase in F25 Brand Investment General Mills Fiscal 2024 Fourth Quarter 14
Slide 15: Superior Products: Taste, Health, and Convenience
F25 Priority 1 Superior Products: Taste, Health, and Convenience General Mills Fiscal 2024 Fourth Quarter 15
Slide 16: Delivering Compelling Value
F25 Priority 1 Delivering Compelling Value General Mills Fiscal 2024 Fourth Quarter 16
Slide 17: Return North America Pet to Growth
F25 Priority 1 Return North America Pet to Growth Ingredient Accelerate Deliver Compelling Superiority Message Humanization Value and Variety General Mills Fiscal 2024 Fourth Quarter 17
Slide 18: Create Fuel for Investment
F25 Priority 2 Create Fuel for Investment Deliver 4 to 5% HMM Cost Savings in F25 Sourcing AI-enabled Waste Logistics Network Simplification Reduction Optimization General Mills Fiscal 2024 Fourth Quarter 18
Slide 19: Drive Strong Cash Generation
F25 Priority 3 Drive Strong Cash Generation Fiscal 2025 Capital Top-tier Cash Conversion Allocation Priorities Free Cash Flow Conversion1 96% 95%+ 1. Capex at ~3.5% of Net Sales 81% 2. Dividend rate +2% per share as of Aug. 1, 2024 Food Peer GIS F24 GIS F25 3. Strategic M&A Median2 Actual Target 4.
Slide 20: Fiscal 2025 Financial Outlook
Fiscal 2025 Financial Outlook Key Financial Metrics¹ F25 Outlook Organic Net Sales Growth Flat to +1% Adjusted Operating Profit Growth² -2% to Flat Adjusted Diluted EPS Growth² -1 to +1% Free Cash Flow Conversion 95%+ 1) Non-GAAP measures 2) Growth rates in constant currency. Non-GAAP measures Gener
Slide 21: Kofi Bruce, Chief Financial Officer
Kofi Bruce Chief Financial Officer General Mills Fiscal 2024 Fourth Quarter
Slide 22: Fourth-quarter Fiscal 2024 Financial Results
Fourth-quarter Fiscal 2024 Financial Results Q4 Total General Mills $MM vs. LY Comparison against favorable Net Sales $4,714 -6% trade expense timing in F23 Q4 was a 3pt headwind to net sales Organic Net Sales1 -6% and a 17pt headwind to adjusted operating profit in F24 Q4 Adjusted Operating Profi
Slide 23: Components of Fourth-quarter Net Sales Growth
Components of Fourth-quarter Net Sales Growth -6% Organic Net Sales1 Flat Flat -1% -2 pts -4 pts -6 pts Organic Organic Foreign Acquisitions & Total Net Sales Volume Price / Mix² Exchange Divestitures as Reported 1) Non-GAAP measure 2) Includes a 3pt headwind from comparison against favorable trade
Slide 24: Fourth-quarter and Fiscal 2024 North America Retail
Fourth-quarter and Fiscal 2024 North America Retail North America Retail Q4 F24 • Q4 organic net sales lagged Nielsen-measured U.S. retail sales by ~4 points, due to an unfavorable trade Organic Net Sales¹ -7% -1% expense timing comparison and a modest decline in Segment Op. Profit² -14% -3% retaile
Slide 25: Fourth-quarter and Fiscal 2024 Pet
Fourth-quarter and Fiscal 2024 Pet Pet Q4 F24 • Q4 organic net sales lagged all-channel retail sales by ~4 points, due to an unfavorable trade expense timing Organic Net Sales¹ -8% -4% comparison and a decline in retailer inventory Segment Op. Profit² +8% +9% • F24 organic net sales driven by lower
Slide 26: Fourth-quarter and Fiscal 2024 North America Foodservice
Fourth-quarter and Fiscal 2024 North America Foodservice North America • Q4 organic net sales growth driven by higher pound Foodservice Q4 F24 volume and positive price/mix Organic Net Sales¹ +4% +2% • Q4 bakery flour index pricing was a 3-point headwind Segment Op. Profit² +9% +9% to net sales grow
Slide 27: Fourth-quarter and Fiscal 2024 International
Fourth-quarter and Fiscal 2024 International International Q4 F24 • Q4 organic net sales driven by unfavorable price/mix, partially offset by higher pound volume Organic Net Sales¹ -10% -2% Segment Op. Profit² -68% -20% • Q4 net sales results included double-digit declines in Brazil and China, parti
Slide 28: Fourth-quarter and Fiscal 2024 Joint Ventures
Fourth-quarter and Fiscal 2024 Joint Ventures F24 AFTER-TAX JV EARNINGS: $85MM, +14%¹ vs. LY Net Sales² Q4 F24 • F24 CPW and HDJ net sales growth driven by positive price/mix, partially offset by lower pound Cereal Partners Worldwide +2% +8% volume Häagen-Dazs Japan -3% +1% • F24 constant-currency a
Slide 29: Fourth-quarter Fiscal 2024 Other Income Statement Items
Fourth-quarter Fiscal 2024 Other Income Statement Items • Adjusted Unallocated Corporate Expenses Decreased $47MM vs. LY • Net Interest Expense Increased $18MM vs. LY • Adjusted Effective Tax Rate 20.0%, +90bps vs. LY¹ • Average Diluted Shares Outstanding -5% vs. LY 1) Non-GAAP measure. See appendix
Slide 30: Fiscal 2024 Financial Results
Fiscal 2024 Financial Results F24 Total General Mills $MM vs. LY Net Sales $19,857 -1% Organic Net Sales1 -1% Adjusted Operating Profit1 $3,603 +4%2 Adjusted Diluted EPS1 $4.52 +6%2 1) Non-GAAP measures. See appendix for reconciliation 2) Growth rates in constant currency. Non-GAAP measures. See ap
Slide 31: Fiscal 2024 Margin Results
Fiscal 2024 Margin Results Adjusted Gross Margin1 Adjusted Operating Profit Margin1 (% of Net Sales) (% of Net Sales) 34.9% 34.2% 34.8% 18.1% 17.2% Pre-pandemic² F23 F24 F23 F24 • Annual Adj. Gross Margin increase driven by HMM cost savings and positive price/mix, partially offset by input cost infl
Slide 32: Fiscal 2024 Cash Flow Performance
Fiscal 2024 Cash Flow Performance Operating Cash Flow Capital Investments ($ in Millions) $774MM $3,303 $2,779 FCF Conversion¹ 96% Debt Leverage² F23 F24 3.0x 1) Non-GAAP measure. See appendix for reconciliation 2) Net Debt-to-Adjusted EBITDA Ratio. Non-GAAP measure. See appendix for reconciliation.
Slide 33: Fiscal 2024 Cash Returns to Shareholders
Fiscal 2024 Cash Returns to Shareholders Cash Returned to Shareholders ($ in Millions) Dividends Paid $3,340 $1,363MM $2,459 Net Share Repurchases $1,977MM F23 F24 Net Share Repurchases Dividends Paid General Mills Fiscal 2024 Fourth Quarter 33
Slide 34: Fiscal 2025 Key Assumptions
Fiscal 2025 Key Assumptions Key Financial Metrics¹ Key Considerations • Expect Continued Gradual Improvement in Category Volume Growth Organic Net Sales • Robust Plans to Drive Improved In-market Competitiveness (Flat to +1%) • Roughly Balanced Contributions from Volume and Price/Mix • HMM Cost Savi
Slide 35: Fiscal 2025 Financial Outlook
Fiscal 2025 Financial Outlook Key Financial Metrics¹ F25 Outlook Organic Net Sales Growth Flat to +1% Adjusted Operating Profit Growth² -2% to Flat Adjusted Diluted EPS Growth² -1 to +1% Free Cash Flow Conversion 95%+ Q1 results expected to be below full-year F25 growth targets, reflecting increased
Slide 36: Today's Key Messages
Today’s Key Messages • F24 Results Met Our Updated Annual Guidance • Our Top Priority in F25 is to Accelerate Organic Net Sales Growth • Targeting Strong HMM Cost Savings in F25 to Fuel Increased Brand Investment and Drive Improved Market Share General Mills Fiscal 2024 Fourth Quarter 36
Slide 37: A Reminder on Non-GAAP Guidance
A Reminder on Non-GAAP Guidance Our fiscal 2025 outlook for organic net sales growth, constant-currency adjusted operating profit, adjusted diluted EPS, and free cash flow are non-GAAP financial measures that exclude, or have otherwise been adjusted for, items impacting comparability, including the
Slide 38: Appendix: North America Retail Operating Unit Results
Appendix: Fourth-quarter and Fiscal 2024 North America Retail Operating Unit Results Net Sales % vs. LY Operating Unit Q4 F24 Canada +3% +5% Canada Constant-currency¹ +4% +6% U.S. Meals & Baking Solutions -10% -2% U.S. Snacks -7% -2% U.S. Morning Foods -6% -2% 1) Net sales growth in constant currenc
Slide 39: Reconciliation of Q4 FY24 Canada Constant-currency Net Sales Growth
Reconciliation of Fourth-quarter Fiscal 2024 Canada Operating Unit Constant-currency Net Sales Growth General Mills Fiscal 2024 Fourth Quarter 39
Slide 40: Reconciliation of Q4 and Fiscal 2024 Organic Net Sales Growth
Reconciliation of Fourth-quarter and Fiscal 2024 Organic Net Sales Growth *Table may not foot due to rounding General Mills Fiscal 2024 Fourth Quarter 40
Slide 41: Reconciliation of Fiscal 2024 Net Sales Compound Growth Rates
Reconciliation of Fiscal 2024 Organic and Reported Net Sales Compound Growth Rates General Mills Fiscal 2024 Fourth Quarter 41
Slide 42: Reconciliation of Fiscal 2024 Adjusted Operating Profit
Reconciliation of Fiscal 2024 Adjusted Operating Profit and Related Constant-currency Growth Rates ($ in Millions) *Table may not foot due to rounding General Mills Fiscal 2024 Fourth Quarter 42
Slide 43: Reconciliation of Fiscal 2024 Adjusted Diluted EPS
Reconciliation of Fiscal 2024 Adjusted Diluted EPS and Related Constant-currency Growth Rates *Table may not foot due to rounding **See reconciliation of tax rate items for tax impact of individual items General Mills Fiscal 2024 Fourth Quarter 43
Slide 44: Reconciliation of Fiscal 2024 Free Cash Flow Conversion
Reconciliation of Fiscal 2024 Free Cash Flow Conversion ($ in Millions) *Table may not foot due to rounding General Mills Fiscal 2024 Fourth Quarter 44
Slide 45: Reconciliation of Q4 Fiscal 2024 Adjusted Operating Profit
Reconciliation of Fourth-quarter Fiscal 2024 Adjusted Operating Profit and Related Constant-currency Growth Rate (Fiscal Years, $ in Millions) *Table may not foot due to rounding General Mills Fiscal 2024 Fourth Quarter 45
Slide 46: Reconciliation of Q4 Fiscal 2024 Adjusted Diluted EPS
Reconciliation of Fourth-quarter Fiscal 2024 Adjusted Diluted EPS and Related Constant-currency Growth Rate (Fiscal Years) *Table may not foot due to rounding **See reconciliation of tax rate items for tax impact of individual items General Mills Fiscal 2024 Fourth Quarter 46
Slide 47: Reconciliation of Constant-currency Segment Operating Profit Growth
Reconciliation of Fourth-quarter and Fiscal 2024 Constant-currency Segment Operating Profit Growth *Table may not foot due to rounding General Mills Fiscal 2024 Fourth Quarter 47
Slide 48: Reconciliation of Joint Ventures After-tax Earnings Growth Rate
Reconciliation of Fiscal 2024 Constant-currency After-tax Earnings from Joint Ventures Growth Rate *Table may not foot due to rounding General Mills Fiscal 2024 Fourth Quarter 48
Slide 49: Reconciliation of Q4 Adjusted Tax Rates
Reconciliation of Fourth-quarter Fiscal 2023 and Fiscal 2024 Adjusted Tax Rates (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 Fiscal 2024 Fourth Quarter 49
Slide 50: Reconciliation of Rolling Quarters Ending Q3 FY2020 Adjusted Gross Margin
Reconciliation of Rolling 4 Quarters Ending Q3 Fiscal 2020 Adjusted Gross Margin General Mills Fiscal 2024 Fourth Quarter 50
Slide 51: Reconciliation of Fiscal 2024 Adjusted Gross Margin
Reconciliation of Fiscal 2024 Adjusted Gross Margin *Table may not foot due to rounding General Mills Fiscal 2024 Fourth Quarter 51
Slide 52: Reconciliation of Adjusted Operating Profit Margin
Reconciliation of Fiscal 2023 and 2024 Adjusted Operating Profit Margin *Table may not foot due to rounding General Mills Fiscal 2024 Fourth Quarter 52
Slide 53: Reconciliation of Net Debt-to-Adjusted EBITDA Ratio
Reconciliation of Net Debt-to-Adjusted EBITDA Ratio (Fiscal Year, $ in Millions) *Table may not foot due to rounding General Mills Fiscal 2024 Fourth Quarter 53
Slide 54: Reconciliation of Fiscal 2023 and 2024 Adjusted Tax Rate
Reconciliation of Fiscal 2023 and Fiscal 2024 Adjusted Tax Rate ($ 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 Fiscal 2024 Fourth Quarter 54