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Nov 24, 2024
General Mills Q2 2025 Earnings Report
General Mills' Q2 2025 earnings were reported, showcasing a mix of sales growth and strategic investments.
Key Takeaways
General Mills reported a 2% increase in net sales to $5.2 billion, with organic net sales up 1%. The company's operating profit increased by 33% to $1.1 billion, and diluted EPS rose by 39% to $1.42. These results reflect the impact of certain favorable timing items expected to reverse in the second half of the fiscal year, along with increased investments aimed at improving volume and market share trends.
Net sales increased by 2% to $5.2 billion, with organic net sales up 1%.
Operating profit rose by 33% to $1.1 billion, and adjusted operating profit increased 7% in constant currency.
Diluted EPS increased by 39% to $1.42, and adjusted diluted EPS grew by 12% in constant currency.
The company updated its full-year fiscal 2025 outlook to reflect increased investment to fund improved volume and market share trends.
General Mills
General Mills
General Mills Revenue by Segment
General Mills Revenue by Geographic Location
Revenue by Segment
North America Retail Revenue
CapyFin.comNorth America Pet Revenue
CapyFin.comNorth America Foodservice Revenue
CapyFin.comInternational Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
General Mills updated its full-year fiscal 2025 financial targets, expecting organic net sales to range between flat and up 1 percent, adjusted operating profit to range between down 4 percent and down 2 percent in constant currency, and adjusted diluted EPS to range between down 3 percent and down 1 percent in constant currency. Free cash flow conversion is expected to be at least 95 percent of adjusted after-tax earnings.
Positive Outlook
- Company is focused on delivering remarkable experiences across its leading food brands.
- Company aims for sustainable improvement in volume growth and market share trends over time.
- Company generated a 4-point improvement in organic pound volume versus its fiscal 2024 performance in the first six months of fiscal 2025.
- Company grew or maintained dollar market share in 38 percent of its priority businesses in the second quarter, representing a significant improvement from fiscal 2024 levels.
- Company continues to invest in brand building above fiscal 2024 levels.
Challenges Ahead
- Uncertain macroeconomic backdrop for consumers across its core markets.
- Company is targeting the lower end of the organic net sales range due to increased promotional investment.
- Organic net sales results in the second half are expected to include a 1-point headwind from the reversal of timing-related benefits in the second quarter.
- Adjusted operating profit results in the second half are expected to include a 3-point headwind from the reversal of timing-related benefits in the second quarter.
- Adjusted operating profit results in the second half are expected to include a 3-point headwind from incremental growth investments and a 2-point headwind from a partial reset of incentive compensation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income