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Sep 18, 2024, 11:23:11 AM
General Mills Q1 2025 Earnings Report: Key Insights
On September 18, 2024, General Mills (NYSE: GIS) released its Q1 2025 earnings, revealing a slight decrease in net sales and profit. The company’s net sales declined by 1% year-over-year to $4.8 billion, driven by unfavorable pricing and volume mix. Organic sales also dropped 1%, reflecting challenges in both the North American and International markets.
Net earnings attributed to General Mills fell 14%, with diluted earnings per share (EPS) decreasing by 10% to $1.03. Adjusted EPS, which excludes certain one-time expenses, came in at $1.07, down 2% in constant currency. Despite these declines, earnings beat expectations, while revenues met analyst forecasts.
Segment Performance Highlights
- North America Retail: Sales in the segment, which includes major product categories like snacks and baking goods, fell by 2%. Increased input costs and lower volumes contributed to a 7% decline in operating profit.
- Pet Segment: Sales dropped 1%, with organic sales also down 1%. Pet treats and wet pet food experienced mid-to-low single-digit declines.
- International: International sales remained flat, with growth in Europe offset by declines in China.
2025 Outlook and Strategy
General Mills reaffirmed its fiscal 2025 guidance, forecasting organic net sales growth of flat to 1%, and adjusted EPS ranging from a 1% decrease to a 1% increase in constant currency. The company plans to continue focusing on its "Accelerate" strategy, which includes reshaping its portfolio through divestitures, like the sale of its North American yogurt business.