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General Mills Q1 2025 Earnings Report: Key Insights

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​.

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