General Mills Q4 2024 Earnings Report
Key Takeaways
General Mills reported a 6% decrease in net sales to $4.7 billion and a 5% decrease in diluted EPS to $0.98 for the fourth quarter of fiscal year 2024. The company is prioritizing organic net sales growth and volume growth for fiscal year 2025.
Net sales decreased by 6% to $4.7 billion, with organic net sales also down 6%.
Operating profit decreased by 5% to $779 million; adjusted operating profit decreased by 10% in constant currency.
Diluted EPS decreased by 5% to $0.98; adjusted diluted EPS decreased by 10% in constant currency.
Gross margin increased by 140 basis points to 35.8%, while adjusted gross margin decreased by 10 basis points to 34.9%.
General Mills
General Mills
General Mills Revenue by Segment
Forward Guidance
General Mills expects organic net sales to range between flat and up 1 percent, adjusted operating profit to range between down 2 percent and flat in constant currency, and adjusted diluted EPS to range between down 1 percent and up 1 percent in constant currency for fiscal year 2025.
Positive Outlook
- Volume trends in its categories will gradually improve in fiscal 2025.
- Accelerate its organic net sales growth by delivering remarkable experiences across its leading food brands.
- Improved household penetration and stronger market share trends versus the prior year.
- Plans call for product news and innovation focused on taste, health, convenience, and value.
- Generate HMM cost savings of roughly 4 to 5 percent of cost of goods sold, which is expected to exceed its anticipated input cost inflation of 3 to 4 percent of cost of goods sold.
Challenges Ahead
- Continued uncertain macroeconomic backdrop for consumers across its core markets.
- Full-year category dollar growth is expected to be below the company’s long-term growth projections.
- Includes a 2-point headwind from resetting incentive compensation after a below-average payout in the prior year.
- Significant increase in brand-building investment in fiscal 2025 to drive improved volume performance.
- Not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income