General Mills Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.00%.
Did GIS Beat Earnings? Q2 2025 Results
General Mills delivered a stronger-than-expected fiscal second quarter, with adjusted diluted EPS of $1.40 clearing the $1.22 consensus estimate by 15.03% and revenue of $5.24 billion edging past forecasts by 1.88% on 2.0% year-over-year growth. The headline beat was meaningfully shaped by favorable timing, as the Thanksgiving holiday shift into early December drove a retailer inventory build in North America Retail, contributing roughly 1.5 points to net sales and 6 points to operating profit that management says will reverse in the second half. Standout performance in North America Pet, where sales rose 5% to $595.80 million and operating profit surged 36% to $139.30 million, provided additional momentum, while gross margin expanded 250 basis points to 36.9%. CEO Jeff Harmening signaled that the company is leaning into promotional investment to drive consumer value and volume recovery, a commitment that prompted General Mills to lower its full-year adjusted diluted EPS outlook to a decline of 1-3% in constant currency, from a prior range of down 1% to up 1%.
- Higher pound volume drove 3-point contribution to net sales growth
- Holistic Margin Management (HMM) cost savings supported gross margin expansion of 250 basis points
- North America Pet returned to growth with 9 points of volume growth
- Favorable mark-to-market effects boosted reported gross margin
- Thanksgiving holiday timing shift created approximately 1.5-point net sales benefit and 6-point operating profit benefit
- Lower net shares outstanding (4% decrease) contributed to EPS growth
- North America Foodservice growth driven by breads, cereal, and frozen meals
“We made important progress accelerating our volume growth and market share trends in the first half of the year, including returning our North America Pet business to growth.”
General Mills CEO, on the earnings call
Forward Guidance & Outlook
General Mills updated its full-year fiscal 2025 outlook: Organic net sales are expected to range between flat and up 1%, now targeting the lower end due to increased promotional investment. Adjusted operating profit is now expected to decline 2–4% in constant currency (previously down 0–2%), reflecting higher investment levels. Adjusted diluted EPS is now expected to decline 1–3% in constant currency (previously down 1% to up 1%). Free cash flow conversion is still expected to be at least 95% of adjusted after-tax earnings. Second-half results are expected to face headwinds from reversal of Q2 timing benefits (~1 point on sales, ~3 points on operating profit), incremental growth investments (~3 points on operating profit), and partial incentive compensation reset (~2 points on operating profit). Outlook does not reflect the pending Whitebridge Pet Brands acquisition or North American yogurt divestitures.
GIS YoY Financials
GIS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.