- Net sales of $5.2 billion were up 2 percent; organic net
sales1 increased 1 percent
- Operating profit of $1.1 billion was up 33 percent; adjusted
operating profit of $1.1 billion increased 7 percent in constant
currency
- Diluted earnings per share (EPS) of $1.42 was up 39 percent;
adjusted diluted EPS of $1.40 increased 12 percent in constant
currency
- Second-quarter results included certain timing benefits that
are expected to reverse in the second half
- Company updates full-year fiscal 2025 outlook to reflect
increased investment to fund improved volume and market share
trends
¹ Please see Note 7 to the Consolidated Financial Statements
below for reconciliation of this and other non-GAAP measures used
in this release.
General Mills, Inc. (NYSE: GIS) today reported results for its
fiscal 2025 second quarter.
“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,” said General
Mills Chairman and Chief Executive Officer Jeff Harmening. “To
achieve and build on these enterprise-wide gains, we’ve made
incremental investments to bring consumers greater value. While
these investments lower our profit outlook for fiscal 2025, they
better position General Mills for sustainable growth in fiscal 2026
and beyond. Amidst a dynamic external environment, I’m not only
confident in our plans, but especially our teams, who are operating
with agility and doing what’s right for our consumers.”
Guided by its purpose to make food the world loves, General
Mills is executing its Accelerate strategy to drive sustainable,
profitable growth and top-tier shareholder returns over the long
term. The strategy focuses on four pillars to create competitive
advantages and win: boldly building brands, relentlessly
innovating, unleashing scale, and standing for good. The company is
prioritizing its core markets, global platforms, and local gem
brands that have the best prospects for profitable growth and is
committed to reshaping its portfolio with strategic acquisitions
and divestitures to further enhance its growth profile.
Second Quarter Results
Summary
- Results in the quarter were impacted by certain favorable
timing items that are expected to reverse in the second half of
fiscal 2025. These include an increase in retailer inventory in
North America Retail due in part to the Thanksgiving holiday
shifting from the final week of the second quarter of fiscal 2024
to the first week of the third quarter of fiscal 2025, as well as
favorable trade and other expense timing. These items represented
approximately a 1.5-point benefit to net sales and a 6-point
benefit to operating profit in the quarter.
- Net sales increased 2 percent to $5.2 billion, driven by
higher pound volume partially offset by unfavorable net price
realization and mix. Organic net sales were up 1 percent.
- Gross margin was up 250 basis points to 36.9 percent of
net sales, driven primarily by Holistic Margin Management (HMM)
cost savings and favorable mark-to-market effects, partially offset
by input cost inflation. Adjusted gross margin was up 130 basis
points to 36.3 percent of net sales, driven primarily by HMM cost
savings, partially offset by input cost inflation and unfavorable
net price realization and mix.
- Operating profit of $1.1 billion was up 33 percent,
driven primarily by higher gross profit dollars and a goodwill
impairment charge a year ago, partially offset by higher selling,
general, and administrative (SG&A) expenses. Operating
profit margin of 20.6 percent was up 480 basis points. Adjusted
operating profit of $1.1 billion increased 7 percent in constant
currency, driven by higher adjusted gross profit dollars, partially
offset by higher adjusted SG&A expenses. Adjusted operating
profit margin was up 100 basis points to 20.3 percent.
- Net earnings attributable to General Mills of $796
million were up 34 percent and diluted EPS was up 39 percent
to $1.42, driven primarily by higher operating profit and lower net
shares outstanding, partially offset by a higher effective tax
rate. Adjusted diluted EPS of $1.40 was up 12 percent in constant
currency, driven primarily by higher adjusted operating profit,
lower net shares outstanding, and a lower adjusted effective tax
rate.
Six Month Results
Summary
- Net sales of $10.1 billion essentially matched year-ago
results, with higher pound volume offset by unfavorable net price
realization and mix. Organic net sales were also essentially in
line with year-ago results.
- Gross margin and adjusted gross margin were each up 70
basis points to 35.9 percent of net sales, driven primarily by HMM
cost savings, partially offset by input cost inflation.
- Operating profit of $1.9 billion was up 10 percent,
driven primarily by a goodwill impairment charge a year ago and
higher gross profit dollars this year, partially offset by higher
SG&A expenses. Operating profit margin of 18.9 percent
was up 160 basis points. Adjusted operating profit of $1.9 billion
increased 2 percent in constant currency, driven by higher adjusted
gross profit dollars, partially offset by higher adjusted SG&A
expenses. Adjusted operating profit margin was up 30 basis points
to 19.1 percent.
- Net earnings attributable to General Mills of $1.4
billion were up 8 percent and diluted EPS was up 13 percent
to $2.45, driven primarily by higher operating profit and lower net
shares outstanding, partially offset by a higher effective tax
rate. Adjusted diluted EPS of $2.47 was up 6 percent in constant
currency, driven primarily by higher adjusted operating profit and
lower net shares outstanding.
Operating Segment
Results
- The acquisition of the Edgard & Cooper pet food business in
the fourth quarter of fiscal 2024 impacted the comparability of
second-quarter and year-to-date International segment operating
results between fiscal 2024 and fiscal 2025.
- Tables may not foot due to rounding.
Components of Fiscal 2025
Reported Net Sales Growth
Second Quarter
Volume
Price/Mix
Foreign
Exchange
Reported
Net Sales
North America Retail
(1) pt
1 pt
--
Flat
North America Pet
9 pts
(5) pts
--
5%
North America Foodservice
5 pts
3 pts
--
8%
International
5 pts
(4) pts
--
1%
Total
3 pts
(1) pt
--
2%
Six Months
North America Retail
(2) pts
1 pt
--
(1)%
North America Pet
6 pts
(4) pts
--
2%
North America Foodservice
3 pts
1 pt
--
4%
International
6 pts
(5) pts
(1) pt
1%
Total
1 pt
(1) pt
--
Flat
Components of Fiscal 2025
Organic Net Sales Growth
Second Quarter
Organic
Volume
Organic
Price/Mix
Organic
Net Sales
Foreign
Exchange
Acquisitions &
Divestitures
Reported
Net Sales
North America Retail
(1) pt
1 pt
1%
--
--
Flat
North America Pet
9 pts
(5) pts
5%
--
--
5%
North America Foodservice
5 pts
3 pts
8%
--
--
8%
International
3 pts
(5) pts
(3)%
--
4 pts
1%
Total
2 pts
(1) pt
1%
--
--
2%
Six Months
North America Retail
(2) pts
1 pt
Flat
--
--
(1)%
North America Pet
6 pts
(4) pts
2%
--
--
2%
North America Foodservice
3 pts
1 pt
4%
--
--
4%
International
4 pts
(6) pts
(2)%
(1) pt
3 pts
1%
Total
1 pt
(1) pt
Flat
--
--
Flat
Fiscal 2025 Segment Operating
Profit Growth
Second Quarter
% Change as Reported
% Change in Constant
Currency
North America Retail
Flat
Flat
North America Pet
36%
36%
North America Foodservice
24%
24%
International
(31)%
(45)%
Total
5%
4%
Six Months
North America Retail
(3)%
(3)%
North America Pet
21%
21%
North America Foodservice
23%
23%
International
(47)%
(56)%
Total
Flat
(1)%
North America Retail Segment
Second-quarter net sales for General Mills’ North America Retail
segment of $3.3 billion essentially matched year-ago results, with
favorable net price realization and mix offset by lower pound
volume. Organic net sales were up 1 percent. Net sales outpaced
Nielsen-measured retail sales by approximately 2 points in the
quarter, reflecting an increase in retailer inventory due in part
to the impact of the later Thanksgiving holiday in fiscal 2025, as
well as stronger growth in non-measured channels. Net sales were up
mid-single digits for the U.S. Morning Foods operating unit and up
low-single digits for U.S. Snacks. Net sales were down low-single
digits for U.S. Meals & Baking Solutions and were down
mid-single digits for Canada in constant currency. Segment
operating profit of $862 million essentially matched year-ago
results as reported and in constant currency, driven primarily by
HMM cost savings and favorable net price realization and mix,
offset by input cost inflation, higher other supply chain costs,
and lower volume.
Through six months, North America Retail segment net sales were
down 1 percent to $6.3 billion. Organic net sales essentially
matched year-ago levels. Segment operating profit of $1.6 billion
was down 3 percent as reported and in constant currency, driven
primarily by input cost inflation, higher other supply chain costs,
and lower volume, partially offset by HMM cost savings and
favorable net price realization and mix.
North America Pet Segment
Second-quarter net sales for the North America Pet segment were
up 5 percent to $596 million, driven by higher pound volume,
partially offset by unfavorable net price realization and mix.
Organic net sales were also up 5 percent. Net sales performance
outpaced all-channel retail sales results by roughly 4 points,
reflecting a rebuild of retailer inventory after significant
prior-year reductions. Net sales in the quarter were up high-single
digits for dry pet food, up mid-single digits for wet pet food, and
up low-single digits for pet treats. Segment operating profit of
$139 million was up 36 percent, driven primarily by HMM cost
savings, higher volume, and lower other supply chain costs,
partially offset by unfavorable net price realization and mix and
higher SG&A expenses including increased media investment.
Through six months, North America Pet segment net sales were up
2 percent to $1.2 billion. Organic net sales were also up 2
percent. Segment operating profit was up 21 percent to $259
million, driven primarily by HMM cost savings, lower other supply
chain costs, and higher volume, partially offset by unfavorable net
price realization and mix, higher SG&A expenses including
increased media investment, and input cost inflation.
North America Foodservice
Segment
Second-quarter net sales for the North America Foodservice
segment were up 8 percent to $630 million. Organic net sales were
also up 8 percent, with growth on breads, cereal, and frozen meals.
Segment operating profit increased 24 percent to $118 million,
driven primarily by favorable net price realization and mix.
Through six months, North America Foodservice net sales
increased 4 percent to $1.2 billion. Organic net sales were also up
4 percent. Segment operating profit was up 23 percent to $190
million, driven primarily by favorable net price realization and
mix.
International Segment
Second-quarter net sales for the International segment increased
1 percent to $691 million, including a 4-point benefit from the
Edgard & Cooper acquisition. Organic net sales were down 3
percent, driven primarily by declines in China and Brazil,
partially offset by growth in distributor markets and Europe &
Australia. Segment operating profit totaled $24 million versus $35
million a year ago, driven primarily by unfavorable net price
realization and mix and higher SG&A expenses, partially offset
by HMM cost savings.
Through six months, International net sales increased 1 percent
to $1.4 billion, including a 3-point benefit from the Edgard &
Cooper acquisition. Organic net sales were down 2 percent. Segment
operating profit totaled $45 million versus $85 million a year ago,
driven primarily by unfavorable net price realization and mix and
input cost inflation, partially offset by HMM cost savings and
higher volume.
Joint Venture Summary
Second-quarter constant-currency net sales increased 2 percent
for Cereal Partners Worldwide (CPW) and were up 1 percent for
Häagen-Dazs Japan (HDJ). Combined after-tax earnings from joint
ventures were up 24 percent to $30 million, driven primarily by
lower input costs and favorable net price realization and mix at
CPW, partially offset by higher SG&A expenses and lower volume
at CPW and higher input costs at HDJ.
Other Income Statement
Items
Second-quarter unallocated corporate items totaled $65 million
net expense in fiscal 2025 compared to $157 million net expense a
year ago. Excluding mark-to-market valuation effects and other
items affecting comparability, unallocated corporate items totaled
$80 million net expense this year compared to $103 million net
expense a year ago.
Restructuring, impairment, and other exit costs totaled $1
million in the second quarter compared to $124 million a year ago
(please see Note 3 below for more information on these
charges).
Net interest expense totaled $125 million in the second quarter
compared to $118 million a year ago, driven primarily by higher
average long-term debt levels. The effective tax rate in the
quarter was 20.1 percent compared to 19.0 percent last year (please
see Note 6 below for more information on our effective tax rate).
The second-quarter adjusted effective tax rate was 20.1 percent
compared to 20.8 percent a year ago, driven primarily by favorable
earnings mix by jurisdiction in the second quarter of fiscal
2025.
Cash Flow Generation and Cash
Returns
Cash provided by operating activities totaled $1.8 billion
through six months of fiscal 2025 and was up 19 percent from a year
ago, driven primarily by a change in accounts payable, partially
offset by changes in inventory and other current assets. Capital
investments totaled $301 million compared to $294 million a year
ago. Dividends paid of $676 million were down 2 percent, reflecting
lower average shares outstanding. General Mills repurchased
approximately 9 million shares of common stock through six months
of fiscal 2025 for a total of $600 million compared to $1.3 billion
in share repurchases a year ago. Average diluted shares outstanding
in the first half decreased 4 percent to 562 million.
Fiscal 2025 Outlook
Amid an uncertain macroeconomic backdrop for consumers across
its core markets, General Mills is focused on delivering remarkable
experiences across its leading food brands, resulting in
sustainable improvement in volume growth and market share trends
over time. Through the first six months of fiscal 2025, General
Mills generated 1 percent growth in organic pound volume, which
represented a 4-point improvement versus its fiscal 2024
performance. Additionally, it grew or maintained dollar market
share in 38 percent of its priority businesses in the second
quarter, which represented a significant improvement from fiscal
2024 levels. To support these improvements, the company has added
targeted promotional investment – above its original plans – in
certain priority categories to deliver greater value for consumers,
while continuing to invest in brand building above fiscal 2024
levels.
Based on the above assumptions, the company updated its
full-year fiscal 2025 financial targets²:
- Organic net sales are still expected to range between
flat and up 1 percent, with the company now targeting the lower end
of the 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 is now expected to range
between down 4 percent and down 2 percent in constant currency,
compared to the previous range of between down 2 percent and flat
in constant currency, reflecting higher investment levels. 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, a 3-point headwind from incremental growth
investments, and a 2-point headwind from a partial reset of
incentive compensation.
- Adjusted diluted EPS is now expected to range between
down 3 percent and down 1 percent in constant currency, compared to
the previous range of between down 1 percent and up 1 percent in
constant currency.
- Free cash flow conversion is still expected to be at
least 95 percent of adjusted after-tax earnings.
- These targets do not reflect an impact from the proposed North
American Yogurt divestitures nor the acquisition of Whitebridge Pet
Brands’ North American portfolio. The company expects to
incorporate these transactions into its outlook after they are
closed.
² Financial targets are provided on a non-GAAP basis because
certain information necessary to calculate comparable GAAP measures
is not available. Please see Note 7 to the Consolidated Financial
Statements below for discussion of the unavailable information.
General Mills will issue pre-recorded management remarks today,
December 18, 2024, at approximately 6:30 a.m. Central time (7:30
a.m. Eastern time) and will hold a live, webcasted question and
answer session beginning at 8:00 a.m. Central time (9:00 a.m.
Eastern time). The pre-recorded remarks and the webcast will be
made available at www.generalmills.com/investors.
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that are based on our current expectations and assumptions. These
forward-looking statements, including the statements under the
caption “Fiscal 2025 Outlook,” and statements made by Mr.
Harmening, are subject to certain risks and uncertainties that
could cause actual results to differ materially from the potential
results discussed in the forward-looking statements. In particular,
our predictions about future net sales and earnings could be
affected by a variety of factors, including: disruptions or
inefficiencies in the supply chain; competitive dynamics in the
consumer foods industry and the markets for our products, including
new product introductions, advertising activities, pricing actions,
and promotional activities of our competitors; economic conditions,
including changes in inflation rates, interest rates, tax rates, or
the availability of capital; product development and innovation;
consumer acceptance of new products and product improvements;
consumer reaction to pricing actions and changes in promotion
levels; acquisitions or dispositions of businesses or assets;
changes in capital structure; changes in the legal and regulatory
environment, including tax legislation, labeling and advertising
regulations, and litigation; impairments in the carrying value of
goodwill, other intangible assets, or other long-lived assets, or
changes in the useful lives of other intangible assets; changes in
accounting standards and the impact of critical accounting
estimates; product quality and safety issues, including recalls and
product liability; changes in consumer demand for our products;
effectiveness of advertising, marketing, and promotional programs;
changes in consumer behavior, trends, and preferences, including
weight loss trends; consumer perception of health-related issues,
including obesity; consolidation in the retail environment; changes
in purchasing and inventory levels of significant customers;
fluctuations in the cost and availability of supply chain
resources, including raw materials, packaging, energy, and
transportation; effectiveness of restructuring and cost saving
initiatives; volatility in the market value of derivatives used to
manage price risk for certain commodities; benefit plan expenses
due to changes in plan asset values and discount rates used to
determine plan liabilities; failure or breach of our information
technology systems; foreign economic conditions, including currency
rate fluctuations; and political unrest in foreign markets and
economic uncertainty due to terrorism or war. The company
undertakes no obligation to publicly revise any forward-looking
statement to reflect any future events or circumstances.
# # #
Consolidated Statements of
Earnings and Supplementary Information
GENERAL MILLS, INC. AND
SUBSIDIARIES
(Unaudited) (In Millions, Except
per Share Data)
Quarter Ended
Six-Month Period Ended
Nov. 24,
Nov. 26,
Nov. 24,
Nov. 26,
2024
2023
% Change
2024
2023
% Change
Net sales
$
5,240.1
$
5,139.4
2
%
$
10,088.2
$
10,044.1
Flat
Cost of sales
3,309.0
3,373.5
(2
)
%
6,468.3
6,507.7
(1
)
%
Selling, general, and administrative
expenses
852.0
830.5
3
%
1,707.1
1,669.8
2
%
Restructuring, impairment, and other
exit costs
1.2
123.6
(99
)
%
3.4
124.8
(97
)
%
Operating profit
1,077.9
811.8
33
%
1,909.4
1,741.8
10
%
Benefit plan non-service income
(13.8
)
(20.1
)
(31
)
%
(27.7
)
(37.1
)
(25
)
%
Interest, net
124.6
117.8
6
%
248.2
234.8
6
%
Earnings before income taxes and
after-tax
earnings from joint
ventures
967.1
714.1
35
%
1,688.9
1,544.1
9
%
Income taxes
194.8
136.0
43
%
352.2
309.2
14
%
After-tax earnings from joint ventures
30.0
24.2
24
%
49.2
47.7
3
%
Net earnings, including earnings
attributable to
noncontrolling interests
802.3
602.3
33
%
1,385.9
1,282.6
8
%
Net earnings attributable to
noncontrolling interests
6.6
6.8
(3
)
%
10.3
13.6
(24
)
%
Net earnings attributable to General
Mills
$
795.7
$
595.5
34
%
$
1,375.6
$
1,269.0
8
%
Earnings per share – basic
$
1.43
$
1.03
39
%
$
2.46
$
2.18
13
%
Earnings per share – diluted
$
1.42
$
1.02
39
%
$
2.45
$
2.16
13
%
Quarter Ended
Six-Month Period Ended
Nov. 24,
Nov. 26,
Basis Pt
Nov. 24,
Nov. 26,
Basis Pt
Comparisons as a % of net sales:
2024
2023
Change
2024
2023
Change
Gross margin
36.9
%
34.4
%
250
35.9
%
35.2
%
70
Selling, general, and administrative
expenses
16.3
%
16.2
%
10
16.9
%
16.6
%
30
Operating profit
20.6
%
15.8
%
480
18.9
%
17.3
%
160
Net earnings attributable to General
Mills
15.2
%
11.6
%
360
13.6
%
12.6
%
100
Quarter Ended
Six-Month Period Ended
Comparisons as a % of net sales
excluding
Nov. 24,
Nov. 26,
Basis Pt
Nov. 24,
Nov. 26,
Basis Pt
certain items affecting comparability
(a):
2024
2023
Change
2024
2023
Change
Adjusted gross margin
36.3
%
35.0
%
130
35.9
%
35.2
%
70
Adjusted operating profit
20.3
%
19.3
%
100
19.1
%
18.8
%
30
Adjusted net earnings attributable to
General Mills
15.0
%
14.1
%
90
13.8
%
13.7
%
10
(a) See Note 7 for a reconciliation of
these measures not defined by generally accepted accounting
principles (GAAP).
See accompanying notes to consolidated
financial statements.
Operating Segment Results and
Supplementary Information
GENERAL MILLS, INC. AND
SUBSIDIARIES
(Unaudited) (In Millions)
Quarter Ended
Six-Month Period Ended
Nov. 24,
2024
Nov. 26,
2023
% Change
Nov. 24,
2024
Nov. 26,
2023
% Change
Net sales:
North America Retail
$
3,321.5
$
3,305.0
Flat
$
6,338.1
$
6,378.0
(1
)
%
International
690.6
683.1
1
%
1,407.6
1,398.9
1
%
North America Pet
595.8
569.3
5
%
1,171.9
1,149.2
2
%
North America Foodservice
630.0
582.0
8
%
1,166.2
1,118.0
4
%
Total segment net sales
$
5,237.9
$
5,139.4
2
%
$
10,083.8
$
10,044.1
Flat
Corporate and other
2.2
-
NM
4.4
-
NM
Total net sales
$
5,240.1
$
5,139.4
2
%
$
10,088.2
$
10,044.1
Flat
Operating profit:
North America Retail
$
862.3
$
859.9
Flat
$
1,608.0
$
1,658.1
(3
)
%
International
23.8
34.6
(31
)
%
44.7
84.6
(47
)
%
North America Pet
139.3
102.5
36
%
258.7
213.7
21
%
North America Foodservice
118.5
95.5
24
%
190.0
154.6
23
%
Total segment operating profit
$
1,143.9
$
1,092.5
5
%
$
2,101.4
$
2,111.0
Flat
Unallocated corporate items
64.8
157.1
(59
)
%
188.6
244.4
(23
)
%
Restructuring, impairment, and other
exit costs
1.2
123.6
(99
)
%
3.4
124.8
(97
)
%
Operating profit
$
1,077.9
$
811.8
33
%
$
1,909.4
$
1,741.8
10
%
Quarter Ended
Six-Month Period Ended
Nov. 24,
2024
Nov. 26,
2023
Basis Pt
Change
Nov. 24,
2024
Nov. 26,
2023
Basis Pt
Change
Segment operating profit as a % of net
sales:
North America Retail
26.0
%
26.0
%
Flat
25.4
%
26.0
%
(60
)
International
3.4
%
5.1
%
(170
)
3.2
%
6.0
%
(280
)
North America Pet
23.4
%
18.0
%
540
22.1
%
18.6
%
350
North America Foodservice
18.8
%
16.4
%
240
16.3
%
13.8
%
250
Total segment operating profit
21.8
%
21.3
%
50
20.8
%
21.0
%
(20
)
See accompanying notes to consolidated
financial statements.
Consolidated Balance
Sheets
GENERAL MILLS, INC. AND
SUBSIDIARIES
(In Millions, Except Par
Value)
Nov. 24, 2024
Nov. 26, 2023
May 26, 2024
(Unaudited)
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
2,292.8
$
593.8
$
418.0
Receivables
1,781.9
1,758.8
1,696.2
Inventories
1,967.9
2,166.0
1,898.2
Prepaid expenses and other current
assets
458.0
527.0
568.5
Assets held for sale
880.8
-
-
Total current assets
7,381.4
5,045.6
4,580.9
Land, buildings, and equipment
3,457.0
3,598.9
3,863.9
Goodwill
14,427.7
14,441.8
14,750.7
Other intangible assets
6,743.3
6,963.3
6,979.9
Other assets
1,386.7
1,183.8
1,294.5
Total assets
$
33,396.1
$
31,233.4
$
31,469.9
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
4,068.8
$
3,824.4
$
3,987.8
Current portion of long-term debt
1,821.5
1,321.0
1,614.1
Notes payable
264.3
799.2
11.8
Other current liabilities
1,804.5
1,957.6
1,419.4
Liabilities held for sale
65.2
-
-
Total current liabilities
8,024.3
7,902.2
7,033.1
Long-term debt
12,435.8
10,530.5
11,304.2
Deferred income taxes
2,232.9
2,026.6
2,200.6
Other liabilities
1,253.9
1,142.2
1,283.5
Total liabilities
23,946.9
21,601.5
21,821.4
Stockholders’ equity:
Common stock, 754.6 shares issued, $0.10
par value
75.5
75.5
75.5
Additional paid-in capital
1,182.0
1,201.8
1,227.0
Retained earnings
21,340.3
20,080.9
20,971.8
Common stock in treasury, at cost, shares
of 202.4, 185.7, and 195.5
(10,873.3
)
(9,677.4
)
(10,357.9
)
Accumulated other comprehensive loss
(2,523.8
)
(2,302.0
)
(2,519.7
)
Total stockholders’ equity
9,200.7
9,378.8
9,396.7
Noncontrolling interests
248.5
253.1
251.8
Total equity
9,449.2
9,631.9
9,648.5
Total liabilities and equity
$
33,396.1
$
31,233.4
$
31,469.9
See accompanying notes to consolidated
financial statements.
Consolidated Statements of
Cash Flows
GENERAL MILLS, INC. AND
SUBSIDIARIES
(Unaudited) (In Millions)
Six-Month Period Ended
Nov. 24, 2024
Nov. 26, 2023
Cash Flows - Operating Activities
Net earnings, including earnings
attributable to noncontrolling interests
$
1,385.9
$
1,282.6
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization
269.1
265.8
After-tax earnings from joint ventures
(49.2
)
(47.7
)
Distributions of earnings from joint
ventures
23.1
23.5
Stock-based compensation
46.6
58.5
Deferred income taxes
(11.5
)
(58.7
)
Pension and other postretirement benefit
plan contributions
(15.2
)
(12.5
)
Pension and other postretirement benefit
plan costs
(6.5
)
(13.5
)
Restructuring, impairment, and other exit
costs
(0.9
)
123.1
Changes in current assets and liabilities,
excluding the effects of
acquisitions and
divestitures
172.3
(166.1
)
Other, net
(39.0
)
40.8
Net cash provided by operating
activities
1,774.7
1,495.8
Cash Flows - Investing Activities
Purchases of land, buildings, and
equipment
(301.2
)
(293.9
)
Acquisition, net of cash acquired
(7.7
)
(25.5
)
Investments in affiliates, net
6.6
(1.5
)
Proceeds from disposal of land, buildings,
and equipment
0.9
0.1
Other, net
(4.5
)
4.6
Net cash used by investing activities
(305.9
)
(316.2
)
Cash Flows - Financing Activities
Change in notes payable
254.3
766.9
Issuance of long-term debt
1,500.0
500.0
Payment of long-term debt
-
(400.0
)
Proceeds from common stock issued on
exercised options
33.8
5.7
Purchases of common stock for treasury
(600.4
)
(1,301.4
)
Dividends paid
(675.8
)
(691.0
)
Distributions to noncontrolling interest
holders
(12.8
)
(12.0
)
Other, net
(77.0
)
(41.8
)
Net cash provided (used) by financing
activities
422.1
(1,173.6
)
Effect of exchange rate changes on cash
and cash equivalents
(16.1
)
2.3
Increase in cash and cash equivalents
1,874.8
8.3
Cash and cash equivalents - beginning of
year
418.0
585.5
Cash and cash equivalents - end of
period
$
2,292.8
$
593.8
Cash Flows from changes in current assets
and liabilities, excluding the effects of
acquisitions and
divestitures:
Receivables
$
(109.3
)
$
(69.2
)
Inventories
(169.5
)
13.8
Prepaid expenses and other current
assets
83.4
209.0
Accounts payable
266.4
(329.1
)
Other current liabilities
101.3
9.4
Changes in current assets and
liabilities
$
172.3
$
(166.1
)
See accompanying notes to consolidated
financial statements.
GENERAL MILLS, INC. AND
SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
(Unaudited)
(1)
The accompanying Consolidated Financial
Statements of General Mills, Inc. (we, us, our, General Mills, or
the Company) have been prepared in accordance with accounting
principles generally accepted in the United States for annual and
interim financial information. In the opinion of management, all
adjustments considered necessary for a fair presentation have been
included and are of a normal recurring nature.
(2)
During the second quarter of fiscal 2025,
we entered into a definitive agreement to acquire NX Pet Holding,
Inc., representing Whitebridge Pet Brands’ North America premium
cat feeding and pet treating business for approximately $1 billion
(Whitebridge Pet Brands acquisition). We expect to close the
transaction in the third quarter of fiscal 2025, subject to
regulatory approval and other customary closing conditions. We
intend to fund the acquisition with cash on hand.
During the second quarter of fiscal 2025,
we entered into definitive agreements to sell our North American
yogurt businesses to affiliates of Group Lactalis S.A. (Lactalis)
and Sodiaal International (Sodiaal) for approximately $2 billion.
We expect to close these divestitures in calendar year 2025,
subject to regulatory approvals and other customary closing
conditions. We have classified all assets and liabilities
associated with our North American yogurt business as held for sale
in our Consolidated Balance Sheets as of November 24, 2024.
During the fourth quarter of fiscal 2024,
we acquired a pet food business in Europe for a purchase price of
$434 million, net of cash acquired. During the first quarter of
fiscal 2025, we paid $8 million related to a purchase price
holdback after certain closing conditions were met. We financed the
transaction with cash on hand. We consolidated the business into
our Consolidated Balance Sheets and recorded goodwill of $318
million, an indefinite-lived brand intangible asset of $118
million, and a finite-lived customer relationship asset of $14
million. The goodwill is included in the International segment and
is not deductible for tax purposes. The pro forma effects of this
acquisition were not material. We have conducted a preliminary
assessment of the fair value of the acquired assets and liabilities
of the business and we are continuing our review of these items
during the measurement period. If new information is obtained about
facts and circumstances that existed at the acquisition date, the
acquisition accounting will be revised to reflect the resulting
adjustments to current estimates of those items. The consolidated
results are reported in our International operating segment on a
one-month lag beginning in fiscal 2025.
(3)
Restructuring and impairment charges and
project-related costs are recorded in our Consolidated Statement of
Earnings as follows:
Quarter Ended
Six-Month Period Ended
In Millions
Nov. 24, 2024
Nov. 26, 2023
Nov. 24, 2024
Nov. 26, 2023
Restructuring, impairment, and other exit
costs
$
1.2
$
123.6
$
3.4
$
124.8
Cost of sales
0.1
8.3
0.8
16.9
Total restructuring and impairment
charges
$
1.3
$
131.9
$
4.2
$
141.7
Project-related costs classified in cost
of sales
$
0.1
$
0.3
$
0.2
$
1.1
In the six-month period ended November 24,
2024, we did not undertake any new restructuring actions. We
recorded $1 million of restructuring charges in the second quarter
of fiscal 2025 and $4 million of restructuring charges in the
six-month period ended November 24, 2024, related to restructuring
actions previously announced. We recorded $15 million of
restructuring charges in the second quarter of fiscal 2024 and $25
million of restructuring charges in the six-month period ended
November 26, 2023, related to previously announced restructuring
actions. We expect these actions to be completed by the end of
fiscal 2026.
In the second quarter of fiscal 2024, we
recorded a $117 million non-cash goodwill impairment charge related
to our Latin America reporting unit.
(4)
Unallocated corporate expenses totaled $65
million in the second quarter of fiscal 2025, compared to $157
million in the same period in fiscal 2024. In the second quarter of
fiscal 2025, we recorded a $29 million net decrease in expense
related to the mark-to-market valuation of certain commodity
positions and grain inventories, compared to a $25 million net
increase in expense in the same period last year. We recorded $3
million of net losses related to valuation adjustments on certain
corporate investments in the second quarter of fiscal 2025,
compared to $20 million of net losses related to valuation
adjustments of certain corporate investments in the second quarter
of fiscal 2024. In addition, we recorded $9 million of transaction
costs related to the definitive agreement for the Whitebridge Pet
Brands acquisition and definitive agreements to sell our North
American yogurt businesses in the second quarter of fiscal 2025,
compared to $1 million of transaction costs in the same period last
year. We recorded $8 million of restructuring charges in the second
quarter of fiscal 2024. In addition, we recorded $2 million of
integration costs related to the acquisition of a pet food business
in Europe in the second quarter of fiscal 2025.
Unallocated corporate expenses totaled
$189 million in the six-month period ended November 24, 2024,
compared to $244 million in the same period in fiscal 2024. In the
six-month period ended November 24, 2024, we recorded a $1 million
net decrease in expense related to the mark-to-market valuation of
certain commodity positions and grain inventories, compared to a
$20 million net decrease in expense in the same period last year.
We recorded $4 million of net losses related to valuation
adjustments on certain corporate investments in the six-month
period ended November 24, 2024, compared to $22 million of net
losses related to valuation adjustments and the loss on sale of
certain corporate investments in the same period in fiscal 2024. In
addition, we recorded $1 million of restructuring charges and an
immaterial amount of restructuring initiative project-related costs
in cost of sales in the six-month period ended November 24, 2024,
compared to $17 million of restructuring charges and $1 million of
restructuring initiative project-related costs in cost of sales in
the same period last year. Compensation expense related to
stock-based payments decreased in the six-month period ended
November 24, 2024, compared to the same period in fiscal 2024. In
the six-month period ended November 24, 2024, we recorded $9
million of transaction costs related to the definitive agreement
for the Whitebridge Pet Brands acquisition and definitive
agreements to sell our North American yogurt businesses, compared
to $1 million of transaction costs in the same period last year. We
recorded $4 million of integration costs related to the acquisition
of a pet food business in Europe in the six-month period ended
November 24, 2024.
(5)
Basic and diluted earnings per share (EPS)
were calculated as follows:
Quarter Ended
Six-Month Period Ended
In Millions, Except per Share
Data
Nov. 24, 2024
Nov. 26, 2023
Nov. 24, 2024
Nov. 26, 2023
Net earnings attributable to General
Mills
$
795.7
$
595.5
$
1,375.6
$
1,269.0
Average number of common shares – basic
EPS
556.9
580.1
558.7
583.2
Incremental share effect from: (a)
Stock options
1.9
1.4
1.7
2.1
Restricted stock units and performance
share units
1.6
1.9
1.8
2.1
Average number of common shares – diluted
EPS
560.4
583.4
562.2
587.4
Earnings per share – basic
$
1.43
$
1.03
$
2.46
$
2.18
Earnings per share – diluted
$
1.42
$
1.02
$
2.45
$
2.16
(a) Incremental shares from stock options,
restricted stock units, and performance share units are computed by
the treasury stock method.
(6)
The effective tax rate for the second
quarter of fiscal 2025 was 20.1 percent compared to 19.0 percent
for the second quarter of fiscal 2024. The 1.1 percentage point
increase was primarily due to certain nonrecurring discrete tax
benefits in the second quarter of fiscal 2024, partially offset by
favorable earnings mix by jurisdiction in the second quarter of
fiscal 2025. Our effective tax rate excluding certain items
affecting comparability was 20.1 percent in the second quarter of
fiscal 2025, compared to 20.8 percent in the same period last year
(see Note 7 below for a description of our use of measures not
defined by GAAP). The 0.7 percentage point decrease was primarily
due to favorable earnings mix by jurisdiction in the second quarter
of fiscal 2025.
The effective tax rate of the six-month
period ended November 24, 2024, was 20.9 percent compared to 20.0
percent for the six-month period ended November 26, 2023. The 0.9
percentage point increase was primarily due to certain nonrecurring
discrete tax benefits in fiscal 2024, partially offset by favorable
earnings mix by jurisdiction in fiscal 2025. Our effective tax rate
excluding certain items affecting comparability was 20.9 percent in
the six-month period ended November 24, 2024, compared to 21.0
percent in the same period last year (see Note 7 below for a
description of our use of measures not defined by GAAP). The 0.1
percentage point decrease was primarily due to favorable earnings
mix by jurisdiction in fiscal 2025, partially offset by certain
nonrecurring discrete tax benefits in fiscal 2024.
(7)
We have included measures in this release
that are not defined by GAAP. We believe that these measures
provide useful information to investors, and include these measures
in other communications to investors. For each of these non-GAAP
financial measures, we are providing below a reconciliation of the
differences between the non-GAAP measure and the most directly
comparable GAAP measure, an explanation of why we believe the
non-GAAP measure provides useful information to investors, and any
additional material purposes for which our management or Board of
Directors uses the non-GAAP measure. These non-GAAP measures should
be viewed in addition to, and not in lieu of, the comparable GAAP
measure.
We provide organic net sales growth rates
for our consolidated net sales and segment net sales. This measure
is used in reporting to our Board of Directors and executive
management and as a component of the Board of Directors’
measurement of our performance for incentive compensation purposes.
We believe that organic net sales growth rates provide useful
information to investors because they provide transparency to
underlying performance in our net sales by excluding the effect
that foreign currency exchange rate fluctuations, acquisitions,
divestitures, and a 53rd fiscal week, when applicable, have on
year-to-year comparability. A reconciliation of these measures to
reported net sales growth rates, the relevant GAAP measures, are
included in our Operating Segment Results above.
Certain measures in this release are
presented excluding the impact of foreign currency exchange
(constant-currency). To present this information, current period
results for entities reporting in currencies other than United
States dollars are translated into United States dollars at the
average exchange rates in effect during the corresponding period of
the prior fiscal year, rather than the actual average exchange
rates in effect during the current fiscal year. Therefore, the
foreign currency impact is equal to current year results in local
currencies multiplied by the change in the average foreign currency
exchange rate between the current fiscal period and the
corresponding period of the prior fiscal year. We believe that
these constant-currency measures provide useful information to
investors because they provide transparency to underlying
performance by excluding the effect that foreign currency exchange
rate fluctuations have on period-to-period comparability given
volatility in foreign currency exchange markets.
Our fiscal 2025 outlook for organic net
sales growth, adjusted operating profit growth, adjusted diluted
EPS growth, and free cash flow conversion are non-GAAP financial
measures that exclude, or have otherwise been adjusted for, items
impacting comparability, including the effect of foreign currency
exchange rate fluctuations, acquisitions, divestitures, and a 53rd
week, when applicable. We are not able to reconcile these
forward-looking non-GAAP financial measures to their most directly
comparable forward-looking GAAP financial measure without
unreasonable efforts because we are unable to predict with a
reasonable degree of certainty the actual impact of changes in
foreign currency exchange rates and the timing of acquisitions and
divestitures throughout fiscal 2025. The unavailable information
could have a significant impact on our fiscal 2025 GAAP financial
results.
For fiscal 2025, we currently expect:
foreign currency exchange rates (based on a blend of forward and
forecasted rates and hedge positions) and acquisitions and
divestitures will have no material impact to net sales growth and
restructuring charges to be immaterial.
Significant Items Impacting Comparability
Several measures below are presented on an adjusted basis. The
adjustments are either items resulting from infrequently occurring
events or items that, in management’s judgement, significantly
affect the year-to-year assessment of operating results.
The following are descriptions of significant items impacting
comparability of our results.
Transaction
costs Fiscal 2025 transaction costs related to the
definitive agreement for the Whitebridge Pet Brands acquisition and
definitive agreements to sell our North American yogurt businesses.
Immaterial transaction costs incurred in fiscal 2024. Please see
Note 2.
Restructuring charges
and project-related costs Restructuring charges and
project-related costs related to previously announced restructuring
actions recorded in fiscal 2025 and fiscal 2024. Please see Note
3.
Acquisition integration
costs Integration costs resulting from the acquisition of a
pet food business in Europe recorded in fiscal 2025. Integration
costs primarily resulting from the acquisition of TNT Crust
recorded in fiscal 2024. Please see Note 2.
Investment activity,
net Valuation adjustments of certain corporate investments
in fiscal 2025 and fiscal 2024. Please see Note 4.
Mark-to-market
effects Net mark-to-market valuation of certain commodity
positions recognized in unallocated corporate items. Please see
Note 4.
Goodwill
impairment Non-cash goodwill impairment charge related to
our Latin America reporting unit in fiscal 2024. Please see Note
3.
Product recall
Costs related to the fiscal 2023 voluntary recall of certain
international Häagen-Dazs ice cream products recorded in fiscal
2024.
CPW restructuring
charges CPW restructuring charges related to previously
announced restructuring actions.
Adjusted Operating Profit Growth and
Related Constant-currency Growth Rate
This measure is used in reporting to our Board of Directors and
executive management and as a component of the measurement of our
performance for incentive compensation purposes. We believe that
this measure provides useful information to investors because it is
the operating profit measure we use to evaluate operating profit
performance on a comparable year-to-year basis. The measure is
evaluated on a constant-currency basis by excluding the effect that
foreign currency exchange rate fluctuations have on year-to-year
comparability given the volatility in foreign currency exchange
rates.
Our adjusted operating profit growth on a constant-currency
basis is calculated as follows:
Quarter Ended
Six-Month Period Ended
Nov. 24, 2024
Nov. 26, 2023
Change
Nov. 24, 2024
Nov. 26, 2023
Change
Operating profit as reported
$
1,077.9
$
811.8
33
%
$
1,909.4
$
1,741.8
10
%
Transaction costs
8.9
0.6
8.9
0.6
Restructuring charges
1.3
14.8
4.2
24.6
Acquisition integration costs
2.3
-
3.9
0.2
Investment activity, net
2.8
19.6
3.2
22.5
Mark-to-market effects
(29.4
)
25.1
(0.6
)
(19.8
)
Project-related costs
0.1
0.3
0.2
1.1
Goodwill impairment
-
117.1
-
117.1
Product recall
-
0.2
-
0.4
Adjusted operating profit
$
1,064.0
$
989.4
8
%
$
1,929.3
$
1,888.4
2
%
Foreign currency exchange impact
Flat
Flat
Adjusted operating profit growth,
on a constant-currency
basis
7
%
2
%
Note: Table may not foot due to
rounding.
For more information on the reconciling
items, please refer to the Significant Items Impacting
Comparability section above.
Adjusted Diluted EPS and Related
Constant-currency Growth Rate
This measure is used in reporting to our Board of Directors and
executive management. We believe that this measure provides useful
information to investors because it is the profitability measure we
use to evaluate earnings performance on a comparable year-to-year
basis.
The reconciliation of our GAAP measure, diluted EPS, to adjusted
diluted EPS and the related constant-currency growth rates
follows:
Quarter Ended
Six-Month Period Ended
Per Share Data
Nov. 24, 2024
Nov. 26, 2023
Change
Nov. 24, 2024
Nov. 26, 2023
Change
Diluted earnings per share, as
reported
$
1.42
$
1.02
39
%
$
2.45
$
2.16
13
%
Transaction costs
0.01
-
0.01
-
Restructuring charges
0.01
0.02
0.01
0.03
Acquisition integration costs
0.01
-
0.01
-
Goodwill impairment
-
0.14
-
0.14
Mark-to-market effects
(0.04
)
0.03
-
(0.03
)
Investment activity, net
-
0.03
-
0.03
Adjusted diluted earnings per share
$
1.40
$
1.25
12
%
$
2.47
$
2.34
6
%
Foreign currency exchange impact
Flat
Flat
Adjusted diluted earnings per share
growth, on a constant-currency
basis
12
%
6
%
Note: Table may not foot due to
rounding.
For more information on the reconciling
items, please refer to the Significant Items Impacting
Comparability section above.
See our reconciliation below of the effective income tax rate as
reported to the adjusted effective income tax rate for the tax
impact of each item affecting comparability.
Adjusted Earnings Comparisons as a Percent
of Net Sales
We believe that these measures provide useful information to
investors because they are important for assessing our adjusted
earnings comparisons as a percent of net sales on a comparable
year-to-year basis.
Our adjusted earnings comparisons as a percent of net sales are
calculated as follows:
Quarter Ended
In Millions
Nov. 24, 2024
Nov. 26, 2023
Comparisons as a % of Net Sales
Value
Percent of
Net Sales
Value
Percent of
Net Sales
Gross margin as reported (a)
$
1,931.1
36.9
%
$
1,765.9
34.4
%
Restructuring charges
0.1
-
%
8.3
0.2
%
Mark-to-market effects
(29.4
)
(0.6
)
%
25.1
0.5
%
Project-related costs
0.1
-
%
0.3
-
%
Adjusted gross margin
$
1,902.0
36.3
%
$
1,799.6
35.0
%
Operating profit as reported
$
1,077.9
20.6
%
$
811.8
15.8
%
Transaction costs
8.9
0.2
%
0.6
-
%
Restructuring charges
1.3
-
%
14.8
0.3
%
Acquisition integration costs
2.3
-
%
-
-
%
Investment activity, net
2.8
0.1
%
19.6
0.4
%
Mark-to-market effects
(29.4
)
(0.6
)
%
25.1
0.5
%
Project-related costs
0.1
-
%
0.3
-
%
Goodwill impairment
-
-
%
117.1
2.3
%
Product recall
-
-
%
0.2
-
%
Adjusted operating profit
$
1,064.0
20.3
%
$
989.4
19.3
%
Net earnings attributable to General Mills
as reported
$
795.7
15.2
%
$
595.5
11.6
%
Transaction costs, net of tax (b)
6.9
0.1
%
0.6
-
%
Restructuring charges, net of tax (b)
1.0
-
%
10.4
0.2
%
Acquisition integration costs, net of tax
(b)
1.8
-
%
0.1
-
%
Investment activity, net, net of tax
(b)
2.2
-
%
15.3
0.3
%
Mark-to-market effects, net of tax (b)
(22.7
)
(0.4
)
%
19.3
0.4
%
CPW restructuring charges
0.1
-
%
1.4
-
%
Project-related costs, net of tax (b)
0.1
-
%
0.2
-
%
Goodwill impairment, net of tax (b)
-
-
%
82.4
1.6
%
Product recall, net of tax (b)
-
-
%
0.2
-
%
Adjusted net earnings attributable to
General Mills
$
785.2
15.0
%
$
725.4
14.1
%
Note: Table may not foot due to
rounding.
For more information on the reconciling
items, please refer to the Significant Items Impacting
Comparability section above.
(a) Net sales less cost of sales. (b) See reconciliation of
adjusted effective income tax rate below for tax impact of each
adjustment.
Six-Month Period Ended
In Millions
Nov. 24, 2024
Nov. 26, 2023
Comparisons as a % of Net Sales
Value
Percent of
Net Sales
Value
Percent of
Net Sales
Gross margin as reported (a)
$
3,619.9
35.9
%
$
3,536.4
35.2
%
Restructuring charges
0.8
-
%
16.9
0.2
%
Mark-to-market effects
(0.6
)
-
%
(19.8
)
(0.2
)
%
Project-related costs
0.2
-
%
1.1
-
%
Adjusted gross margin
$
3,620.4
35.9
%
$
3,534.6
35.2
%
Operating profit as reported
$
1,909.4
18.9
%
$
1,741.8
17.3
%
Transaction costs
8.9
0.1
%
0.6
-
%
Restructuring charges
4.2
-
%
24.6
0.2
%
Acquisition integration costs
3.9
-
%
0.2
-
%
Investment activity, net
3.2
-
%
22.5
0.2
%
Mark-to-market effects
(0.6
)
-
%
(19.8
)
(0.2
)
%
Project-related costs
0.2
-
%
1.1
-
%
Goodwill impairment
-
-
%
117.1
1.2
%
Product recall
-
-
%
0.4
-
%
Adjusted operating profit
$
1,929.3
19.1
%
$
1,888.4
18.8
%
Net earnings attributable to General Mills
as reported
$
1,375.6
13.6
%
$
1,269.0
12.6
%
Transaction costs, net of tax (b)
6.9
0.1
%
0.6
-
%
Restructuring charges, net of tax (b)
3.2
-
%
15.5
0.2
%
Acquisition integration costs, net of tax
(b)
3.0
-
%
0.2
-
%
Investment activity, net, net of tax
(b)
2.5
-
%
17.2
0.2
%
Mark-to-market effects, net of tax (b)
(0.5
)
-
%
(15.3
)
(0.2
)
%
CPW restructuring charges
0.2
-
%
1.7
-
%
Project-related costs, net of tax (b)
0.2
-
%
0.7
-
%
Goodwill impairment, net of tax (b)
-
-
%
82.4
0.8
%
Product recall, net of tax (b)
-
-
%
0.3
-
%
Adjusted net earnings attributable to
General Mills
$
1,391.1
13.8
%
$
1,372.4
13.7
%
Note: Table may not foot due to
rounding.
For more information on the reconciling
items, please refer to the Significant Items Impacting
Comparability section above.
(a) Net sales less cost of sales.
(b) See reconciliation of adjusted
effective income tax rate below for tax impact of each
adjustment.
Constant-currency Segment Operating Profit
Growth Rates
We believe that this measure provides useful information to
investors because it provides transparency to underlying
performance of our segments by excluding the effect that foreign
currency exchange rate fluctuations have on year-to-year
comparability given volatility in foreign currency exchange
markets.
Our segments’ operating profit growth rates on a
constant-currency basis are calculated as follows:
Quarter Ended Nov. 24,
2024
Percentage Change in
Operating Profit
as Reported
Impact of Foreign
Currency
Exchange
Percentage Change in
Operating Profit on
Constant-Currency
Basis
North America Retail
Flat
Flat
Flat
International
(31
)
%
14
pts
(45
)
%
North America Pet
36
%
Flat
36
%
North America Foodservice
24
%
Flat
24
%
Total segment operating profit
5
%
Flat
4
%
Six-Month Period Ended Nov.
24, 2024
Percentage Change in
Operating Profit
as Reported
Impact of Foreign
Currency Exchange
Percentage Change in
Operating Profit on
Constant-Currency
Basis
North America Retail
(3
)
%
Flat
(3
)
%
International
(47
)
%
9
pts
(56
)
%
North America Pet
21
%
Flat
21
%
North America Foodservice
23
%
Flat
23
%
Total segment operating profit
Flat
Flat
(1
)
%
Note: Table may not foot due to
rounding.
Net Sales Growth Rates for our Canada
Operating Unit on a Constant-currency Basis
We believe that this measure of our Canada operating unit net
sales provides useful information to investors because it provides
transparency to underlying performance of our Canada operating unit
within our North America Retail segment by excluding the effect
that foreign currency exchange rate fluctuations have on
year-to-year comparability given volatility in foreign currency
exchange markets.
Net sales growth rates for our Canada operating unit on a
constant-currency basis are calculated as follows:
Percentage Change in
Net Sales
as Reported
Impact of Foreign
Currency
Exchange
Percentage Change in
Net Sales on Constant-
Currency Basis
Quarter Ended Nov. 24, 2024
(4
)
%
Flat
(4
)
%
Six-Month Period Ended Nov. 24, 2024
(1
)
%
(2
)
pts
1
%
Note: Table may not foot due to
rounding.
Adjusted Effective Income Tax
Rate
We believe this measure provides useful information to investors
because it presents the adjusted effective income tax rate on a
comparable year-to-year basis.
Adjusted effective income tax rates are calculated as
follows:
Quarter Ended
Six-Month Period Ended
Nov. 24, 2024
Nov. 26, 2023
Nov. 24, 2024
Nov. 26, 2023
In Millions
(Except Per Share Data)
Pretax
Earnings
(a)
Income
Taxes
Pretax
Earnings
(a)
Income
Taxes
Pretax
Earnings
(a)
Income
Taxes
Pretax
Earnings
(a)
Income
Taxes
As reported
$
967.1
$
194.8
$
714.1
$
136.0
$
1,688.9
$
352.2
$
1,544.1
$
309.2
Transaction costs
8.9
2.0
0.6
-
8.9
2.0
0.6
-
Restructuring charges
1.3
0.3
14.8
4.5
4.2
1.0
24.6
9.2
Acquisition integration costs
2.3
0.5
-
-
3.9
0.9
0.2
0.1
Investment activity, net
2.8
0.6
19.6
4.2
3.2
0.7
22.5
5.2
Mark-to-market effects
(29.4
)
(6.7
)
25.1
5.7
(0.6
)
(0.1
)
(19.8
)
(4.6
)
Project-related costs
0.1
0.1
0.3
0.1
0.2
0.1
1.1
0.4
Goodwill impairment
-
-
117.1
34.7
-
-
117.1
34.7
Product recall
-
-
0.2
-
-
-
0.4
0.1
As adjusted
$
953.2
$
191.6
$
891.7
$
185.2
$
1,708.8
$
356.9
$
1,690.8
$
354.2
Effective tax rate:
As reported
20.1
%
19.0
%
20.9
%
20.0
%
As adjusted
20.1
%
20.8
%
20.9
%
21.0
%
Sum of adjustments to income taxes
$
(3.2
)
$
49.4
$
4.6
$
45.1
Average number of common
shares - diluted EPS
560.4
583.4
562.2
587.4
Impact of income tax adjustments
on adjusted diluted EPS
$
0.01
$
(0.08
)
$
(0.01
)
$
(0.08
)
Note: Table may not foot due to
rounding.
(a) Earnings before income taxes and after-tax earnings from joint
ventures.
For more information on the reconciling
items, please refer to the Significant Items Impacting
Comparability section above.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241217574855/en/
(Investors) Jeff Siemon: +1-763-764-2301 (Media) Chelcy Walker:
+1-763-764-6364
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