General Mills, Inc. · NYSE:GIS
General Mills — 2025 CAGNY Conference
69 slides from General Mills's conference presentation, Feb 18, 2025
Slide 1: CAGNY 2025
CAGNY 2025 February 18, 2025 2025 CAGNY Conference
Slide 2: Jeff Harmening
Jeff Harmening Chairman and Chief Executive Officer 2025 CAGNY Conference 2
Slide 3: 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 4: Key Messages
Key Messages • Over the past five years, we’ve successfully executed on our Accelerate strategy and delivered strong results • We’re adapting and investing to respond to today’s evolving consumer environment by delivering greater remarkability • Our brands, capabilities, and people position us to de
Slide 5: Agenda
Agenda Accelerate Generating Delivering Strategy Sustainable Long-term Overview Growth Shareholder Value 2025 CAGNY Conference 5
Slide 6: Making Food the World Loves for More than 150 Years
Making Food the World Loves for More than 150 Years $20 Billion Nine ~34,000 More than Fiscal 2024 Billion 100 Employees Countries Net Sales Dollar Brands Worldwide FORBES 2024 America’s Best Large Employers Best Employers for New Grads World’s Top Companies for Women Brands with $1B+ in retail sale
Slide 7: Our Accelerate Strategy
Our Accelerate Strategy Our Purpose Core Global Local Portfolio Where to Play Markets Platforms Gems Reshaping Boldly Building Relentlessly Unleashing Standing How to Win Brands Innovating Our Scale for Good Organic Net Sales¹ Adj. Op. Profit¹ Adj. Diluted EPS¹ Maintain Capital Shareholder Value +2
Slide 8: Where to Play
Where to Play Eight Core Five Global Local Gems Markets Platforms Cereal Pet Food Mexican Snack Bars Food Ice Cream 2025 CAGNY Conference 8
Slide 9: Evolving "Where to Play" Through Portfolio Shaping
Evolving “Where to Play” Through Portfolio Shaping North America Pet Canada Yogurt Proposed U.S. Acquisition Divestiture Yogurt Divestiture Transaction Closed Transaction Closed Expected to Close in December 2024 January 2025 Calendar Year 2025 2025 CAGNY Conference 9
Slide 10: Portfolio Shaping: Nearly 30% of Net Sales Turned Over Since F18
Portfolio Shaping: Nearly 30% of Net Sales Turned Over Since F18 General Mills Prior to Accelerate General Mills Pro Forma¹ Other2 Other2 Snacks Ice Snacks Ice Cream Cream Dough Dough Cereal Cereal Yogurt Pet Meals Meals (1) Pro Forma adjusted for recently announced transactions; proposed U.S. Yogur
Slide 11: Driving Long-term Sustainable Growth
Driving Long-term Sustainable Growth Boldly Building Relentlessly Unleashing Standing Brands Innovating Our Scale for Good 2025 CAGNY Conference 11
Slide 12: Long-term "Mega Trends"
Long-term “Mega Trends” Demographic Humanization Technology Climate Shifts of Pet Food Advancements Change 2025 CAGNY Conference 12
Slide 13: Investing in Bold Brand Building
Investing in Bold Brand Building Media Investment¹ ($ in Millions) +37% $825 $602 F19 F24 (1) Advertising and media expense (including production and communication costs) 2025 CAGNY Conference 13
Slide 14: Boldly Building Brands Video
Boldly Building Brands Video 2025 CAGNY Conference 14
Slide 15: Relentlessly Innovating
Relentlessly Innovating New Products and Brand Expansion Renovation News 2025 CAGNY Conference 15
Slide 16: Unleashing Our Scale with Digital Capabilities
Unleashing Our Scale with Digital Capabilities Data-driven Strategic Supply Chain Marketing Revenue Digitalization Management Digital & Technology Foundations 2025 CAGNY Conference 16
Slide 17: Data-driven Marketing: Building Meaningful Consumer Relationships
Data-driven Marketing: Building Meaningful Consumer Relationships Enhanced Audience Targeting Seamless Cross-channel Insights Real-time Performance Optimization 2025 CAGNY Conference 17
Slide 18: Strategic Revenue Management: Driving Price/Mix Over the Long Term
Strategic Revenue Management: Driving Price/Mix Over the Long Term Optimal Promotion Price Leveraging Optimization Full Suite of Levers Mix Price Pack Management Architecture 2025 CAGNY Conference 18
Slide 19: Standing for Good
Standing for Good Our Global Impact Advancing Regenerative Commitments Agriculture ~500,000 600,000+ Acres Acres Engaged in in Engaged Regenerative Regenerative Agriculture Agriculture 1 2025 CAGNY Conference 19
Slide 20: Our Accelerate Strategy Has Driven Strong Results
Our Accelerate Strategy Has Driven Strong Results Long-term 5-year CGR3 Algorithm Organic Net Sales¹ +5% +2 to 3% Adj. Op. Profit2 +5% +MSD% Adj. Diluted EPS2 +7% +MSD to HSD% (1) Non-GAAP measure (2) Constant-currency growth rates. Non-GAAP measures (3) 5-year CGR = F19 to F24 compound growth rates
Slide 21: Navigating Through an Evolving Environment
Navigating Through an Evolving Environment General Mills Organic Net Sales Growth Lockdowns High Stabilization Inflation Long-term Algorithm F19 F20 F21 F22 F23 F24 (1) Non-GAAP measure 2025 CAGNY Conference 21
Slide 22: Improving Our Competitiveness by Investing in Remarkable Experiences
Improving Our Competitiveness by Investing in Remarkable Experiences Remarkable Experience Framework Superior Package Brand Omnichannel Compelling Product Design Communication Execution Value Consumers’ Brand of Choice 2025 CAGNY Conference 22
Slide 23: Today's Evolving Consumer Behaviors
Today’s Evolving Consumer Behaviors Seeking Prioritizing Value Benefits Meal & Grocery Specialized Nutrition Planning & Protein Promotions Exciting Flavors & Coupons & Experiences Value Retail Comfort Channels & Nostalgia 2025 CAGNY Conference 23
Slide 24: Our Top Priority: Accelerating Organic Sales Growth
Our Top Priority: Accelerating Organic Sales Growth 1 Return North America Retail to Growth 2 Continue Accelerating Pet 3 Step Change Growth in International 4 Maintain Momentum in North America Foodservice 2025 CAGNY Conference 24
Slide 25: Return North America Retail to Growth
1 Return North America Retail to Growth 2025 CAGNY Conference 25
Slide 26: Cereal Remarkable Experiences
Cereal Remarkable Experiences 2025 CAGNY Conference 26
Slide 27: Soup Remarkable Experiences
Soup Remarkable Experiences 2025 CAGNY Conference 27
Slide 28: Hot Snacks Remarkable Experiences
Hot Snacks Remarkable Experiences THE MOST EPIC WAY TO EAT PIZZA 2025 CAGNY Conference 28
Slide 29: Totino's Game Day Commercial
Totino’s Game Day Commercial 2025 CAGNY Conference 29
Slide 30: Refrigerated Dough Remarkable Experiences
Refrigerated Dough Remarkable Experiences 2025 CAGNY Conference 30
Slide 31: Improving Refrigerated Dough Trends in Q3
Improving Refrigerated Dough Trends in Q3 Expanding Accelerating Increasing Brand Improving Value Product News Cookie Momentum Building General Mills Refrigerated Dough Retail Pound Growth 1% -2% -2% -2% -3% -6% F24 F25 Q1 F25 Sep F25 Oct F25 Nov/Dec F25 Jan Source: NIQ xAOC through Jan 2025 2025 CA
Slide 32: More Work to Do on Snacks
More Work to Do on Snacks 2025 CAGNY Conference 32
Slide 33: Return North America Retail to Growth
Return North WIN America Retail with Our Core to Growth Brands By Delivering REMARKABLE Experiences 2025 CAGNY Conference 33
Slide 34: Continue Accelerating Pet
2 Continue Accelerating Pet 2025 CAGNY Conference 34
Slide 35: Continue Accelerating Pet
Continue LEAD in Humanization Accelerating PET GROW with Blue Buffalo DRIVE Our Expanded Portfolio 2025 CAGNY Conference 35
Slide 36: Leading in Humanization
Leading in Humanization 2025 CAGNY Conference 36
Slide 37: Growing with Blue Buffalo
Growing with Blue Buffalo Communicate Deliver Compelling Strengthen Ingredient Superiority Value and Variety In-store Execution 2025 CAGNY Conference 37
Slide 38: Life Protection Formula Remarkable Experiences
Life Protection Formula Remarkable Experiences 2025 CAGNY Conference 38
Slide 39: Wilderness Remarkable Experiences
Wilderness Remarkable Experiences 2025 CAGNY Conference 39
Slide 40: Wilderness Commercial
Wilderness Commercial 2025 CAGNY Conference 40
Slide 41: Wilderness Remarkable Experiences
Wilderness Remarkable Experiences 2025 CAGNY Conference 41
Slide 42: Tastefuls Remarkable Experiences
Tastefuls Remarkable Experiences 2025 CAGNY Conference 42
Slide 43: Expanding Our Portfolio to Bring More Remarkable Experiences to More Pet Parents
Expanding Our Portfolio to Bring More Remarkable Experiences to More Pet Parents 2025 CAGNY Conference 43
Slide 44: Continue Accelerating Pet
Continue LEAD in Humanization Accelerating PET GROW with Blue Buffalo DRIVE Our Expanded Portfolio 2025 CAGNY Conference 44
Slide 45: Step Change Growth in International
3 Step Change Growth in International 2025 CAGNY Conference 45
Slide 46: Ignite Häagen-Dazs Retail Growth
Step Change Growth in International Ignite Accelerate Turn Around Häagen-Dazs Distributor China and Retail Growth Markets Brazil 2025 CAGNY Conference 46
Slide 47: Maintain Momentum in North America Foodservice
4 Maintain Momentum in North America Foodservice 2025 CAGNY Conference 47
Slide 48: Maintain Momentum in North America Foodservice
Maintain Momentum in North America Foodservice Continue Expand Presence in Leadership in K-12 Frozen Baked Goods 2025 CAGNY Conference 48
Slide 49: Kofi Bruce
Kofi Bruce Chief Financial Officer 2025 CAGNY Conference 49
Slide 50: Four Levers to Drive Top-tier Shareholder Returns
Four Levers to Drive Top-tier Shareholder Returns Sales Margin Cash Cash Growth Expansion Conversion Returns Cash Returns to Organic Net Sales¹ Adj. Operating Profit¹ FCF Conversion¹ Shareholders +2 to 3% +MSD%² 95%+ ~80 to 90% Adj. Diluted EPS¹ +MSD to (1) Non-GAAP measures (2) Constant-currency gr
Slide 51: Three Drivers of Improved Organic Sales Growth
Sales Growth Three Drivers of Improved Organic Sales Growth 1 Continue to Improve Our Competitiveness in Current Categories 2 Continue Reshaping Our Portfolio to Increase Our Growth Exposure Categories Return to Historical Growth Rates, 3 Including Stronger Contributions from Price/Mix 2025 CAGNY Co
Slide 52: Improved Competitiveness, with More Work to Do
Sales Growth Improved Competitiveness, with More Work to Do General Mills % Priority Business • All four segments improved pound Holding or Growing Pound Share and dollar share trends in F25 Q2 47% • Increased pound share and maintained dollar share in U.S. Pet 34% Food in F25 Q2 • Dollar share impr
Slide 53: Reshaped Portfolio for Stronger Growth
Sales Growth Reshaped Portfolio for Stronger Growth Increased Growth Exposure by More than 1 Point Since Fiscal 2018 Acquisitions ~30% Divestitures Nearly 30% of Net Sales Base Turned Over Since F18 2025 CAGNY Conference 53
Slide 54: Strong Margin Performance over the Past Five Years
Margin Expansion Strong Margin Performance over the Past Five Years Adj. Gross Margin Slightly Above Adj. Operating Profit Margin Pre-pandemic Level Ahead of Pre-pandemic Level General Mills Adjusted Gross Margin¹ General Mills Adjusted Operating Profit Margin¹ +40 bps +120 bps 34.4% 34.8% 18.1% 16.
Slide 55: Visibility to Continued Strong HMM Cost Savings
Margin Expansion Visibility to Continued Strong HMM Cost Savings Holistic Margin Management Cost Savings as % of COGS 6% 5% ~4 to 5% 4% Long-term trend of COGS 3% 3% F10 - F21 F22 F23 F24 F25 Estimate F26 Estimate Average 2025 CAGNY Conference 55
Slide 56: Supply Chain Digitalization: Fueling Our Strong HMM Pipeline
Supply Chain Digitalization: Margin Expansion Fueling Our Strong HMM Pipeline Autonomous AI-Enabled Connected Planning Execution Ecosystem More Accurate Optimize Drive Shipment Manufacturing Line Profitable Growth Forecasting Analytics 2025 CAGNY Conference 56
Slide 57: Delivered Long-term Working Capital Improvement
Cash Conversion Delivered Long-term Working Capital Improvement Generated Nearly $1B in Cash¹ Through Core Working Capital Reduction $0.4 -$0.2 -$0.2 -$0.3 -$0.4 -$0.4 F19 F20 F21 F22 F23 F24 (1) Core Working Capital defined as accounts receivable plus inventories less accounts payable, all as of th
Slide 58: Converting Earnings to Cash
Cash Conversion Converting Earnings to Cash General Mills Free Cash Flow¹ (3-Year Rolling, $ in Billions) $8.4 $7.7 $7.9 $7.3 $7.4 $6.2 127% Exceeded 120% 119% 109% 98% Long-term 96% target of 95%+ F17-F19 F18-F20 F19-F21 F20-F22 F21-F23 F22-F24 Free Cash Flow Free Cash Flow Conversion¹ (1) Non-GAAP
Slide 59: Long-term Capital Allocation Priorities
Cash Returns Long-term Capital Allocation Priorities Priorities Long-term Goal CAPEX ~4% of Net Sales Dividend Growth Grow Dividend with Earnings Strategic M&A Growth and Value-accretive M&A Share Repurchases ~1 to 2% Average Annual Reduction 2025 CAGNY Conference 59
Slide 60: Returned More than $11 Billion to Shareholders Since F19
Cash Returns Returned More than $11 Billion to Shareholders Since F19 Dividends Net Share Repurchases ($ per Share) ($ in Billions) $7.5 Billion $3.6 Billion Returned to Shareholders Returned to Shareholders $2.36 $2.0 $1.96 F19-F21 Deleveraging Post-Blue Buffalo Acquisition F19 F20 F21 F22 F23 F24
Slide 61: Key Messages
Key Messages • Over the past five years, we’ve successfully executed on our Accelerate strategy and delivered strong results • We’re adapting and investing to respond to today’s evolving consumer environment by delivering greater remarkability • Our brands, capabilities, and people position us to de
Slide 62: Appendix
Appendix 2025 CAGNY Conference 62
Slide 63: Reconciliation of Organic Net Sales Compound Growth Rates
Reconciliation of Organic Net Sales Compound Growth Rates (Fiscal Years, Percent Change) Reported Net Foreign Acquisitions 53rd Organic Net Sales Growth Exchange & Divestitures Week Sales Growth 2020 vs 2019 5% (1) pt - 2 pts 4% 2021 vs 2020 3% 1 pt - (2) Pts 4% 2022 vs 2021 5% - (1) pt - 6% 2023 vs
Slide 64: Reconciliation of Adjusted Gross Margin
Reconciliation of Adjusted Gross Margin (Fiscal Years) 2024 2019 Percent of Percent of Net Sales Net Sales Gross margin as reported 34.9 % 34.1 % Mark-to-market effects (0.2) % 0.2 % Restructuring charges 0.1 % 0.1 % Adjusted gross margin 34.8 % 34.4 % *Table may not foot due to rounding 2025 CAGNY
Slide 65: Reconciliation of Adjusted Operating Profit Margin
Reconciliation of Adjusted Operating Profit Margin (Fiscal Years) 2024 2019 Percent of Percent of Net Sales Net Sales Operating Profit Margin as reported 17.3 % 14.9 % Goodwill and other asset impairments 1.1 % 1.2 % Legal recovery (0.3) % (0.1) % Mark-to-market effects (0.2) % 0.2 % Restructuring c
Slide 66: Reconciliation of Adjusted Operating Profit Constant-currency Growth Rates
Reconciliation of Adjusted Operating Profit Constant-currency Growth Rates (Fiscal Years, $ in Millions) 5-year 2024 2023 Change 2023 2022 Change 2022 2021 Change 2021 2020 Change 2020 2019 Change CGR Operating profit as reported $3,431.7 $3,433.8 Flat $3,433.8 $3,475.8 (1)% $3,475.8 $3,144.8 11% $3
Slide 67: Reconciliation of Adjusted Diluted EPS and Related Constant-currency Growth Rates
Reconciliation of Adjusted Diluted EPS and Related Constant-currency Growth Rates (Fiscal Years, $ per Share) 5-year 2024 2023 Change 2023 2022 Change 2022 2021 Change 2021 2020 Change 2020 2019 Change CGR Diluted earnings per share, as reported $4.31 $4.31 Flat $4.31 $4.42 (2)% $4.42 $3.78 17% $3.7
Slide 68: Reconciliation of Free Cash Flow and Free Cash Flow Conversion
Reconciliation of Free Cash Flow and Free Cash Flow Conversion (Fiscal Years, $ in Millions) 2024 2023 2022 2021 2020 2019 2018 2017 Net earnings, including earnings attributable to redeemable and noncontrolling interests, as reported $ 2,519 $ 2,610 $ 2,735 $ 2,346 $ 2,211 $ 1,786 $ 2,163 $ 1,701 G
Slide 69: Reconciliation of Income Taxes on Adjusting Items
Reconciliation of Income Taxes on Adjusting Items (Fiscal Years, $ in Millions Except per Share Data) 2024 2023 2022 2021 2020 2019 2018 2017 Pretax Income Pretax Income Pretax Income Pretax Income Pretax Income Pretax Income Pretax Income Pretax Income Earnings** Taxes Earnings** Taxes Earnings** T