GENERAL MILLS INC (GIS)
SIC breadcrumb: Manufacturing > Food And Kindred Products > SIC 2040 Grain Mill Products
SEC company page: https://www.sec.gov/edgar/browse/?CIK=40704. Latest filing source: 0001193125-25-147079.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 19,486,600,000 | USD | 2025 | 2025-06-26 |
| Net income | 2,295,200,000 | USD | 2025 | 2025-06-26 |
| Assets | 33,071,100,000 | USD | 2025 | 2025-06-26 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-06-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000040704.json. Derived margins are computed from the extracted annual SEC facts.
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 15,619,800,000 | 15,740,400,000 | 16,865,200,000 | 17,626,600,000 | 18,127,000,000 | 18,992,800,000 | 20,094,200,000 | 19,857,200,000 | 19,486,600,000 | |
| Net income | 1,697,400,000 | 1,657,500,000 | 2,131,000,000 | 1,752,700,000 | 2,181,200,000 | 2,339,800,000 | 2,707,300,000 | 2,593,900,000 | 2,496,600,000 | 2,295,200,000 |
| Operating income | 2,707,400,000 | 2,492,100,000 | 2,419,900,000 | 2,515,900,000 | 2,953,900,000 | 3,144,800,000 | 3,475,800,000 | 3,433,800,000 | 3,431,700,000 | 3,304,800,000 |
| Diluted EPS | 2.77 | 2.77 | 3.64 | 2.90 | 3.56 | 3.78 | 4.42 | 4.31 | 4.31 | 4.10 |
| Assets | 21,712,300,000 | 21,812,600,000 | 30,624,000,000 | 30,111,200,000 | 30,806,700,000 | 31,841,900,000 | 31,090,100,000 | 31,451,700,000 | 31,469,900,000 | 33,071,100,000 |
| Liabilities | 15,559,600,000 | 16,216,200,000 | 23,355,400,000 | 22,191,800,000 | 21,912,600,000 | 21,463,800,000 | 20,302,100,000 | 20,751,700,000 | 21,821,400,000 | 23,859,900,000 |
| Stockholders' equity | 4,930,200,000 | 4,327,900,000 | 6,141,100,000 | 7,054,500,000 | 8,058,500,000 | 9,470,400,000 | 10,542,400,000 | 10,449,600,000 | 9,396,700,000 | 9,199,200,000 |
| Cash and cash equivalents | 766,100,000 | 766,100,000 | 399,000,000 | 450,000,000 | 1,677,800,000 | 1,505,200,000 | 569,400,000 | 585,500,000 | 418,000,000 | 363,900,000 |
| Net margin | 10.61% | 13.54% | 10.39% | 12.37% | 12.91% | 14.25% | 12.91% | 12.57% | 11.78% | |
| Operating margin | 15.95% | 15.37% | 14.92% | 16.76% | 17.35% | 18.30% | 17.09% | 17.28% | 16.96% |
Financial Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
Latest 10-K MD&A
ITEM 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations EXECUTIVE OVERVIEW We are a global packaged foods company. We develop distinctive value-added food products and market them under unique brand names. We work continuously to improve our core products and to create new products that meet consumers’ evolving needs and preferences. In addition, we build the equity of our brands over time with strong consumer-directed marketing, innovative new products, and effective merchandising. We believe our brand-building approach is the key to winning and sustaining leading share positions in markets around the globe. Our fundamental financial goal is to generate competitively differentiated returns for our shareholders over the long term. We believe achieving that goal requires us to generate a consistent balance of net sales growth, margin expansion, cash conversion, and cash return to shareholders over time. Our long-term growth objectives are to deliver the following performance on average over time: ● 2 to 3 percent annual growth in organic net sales; ● mid-single-digit annual growth in adjusted operating profit; ● mid- to high-single-digit annual growth in adjusted diluted earnings per share (EPS); ● free cash flow conversion of at least 95 percent of adjusted net earnings after tax; and ● cash return to shareholders of 80 to 90 percent of free cash flow, including an attractive dividend yield. Guided by our purpose to make food the world loves, we are executing our 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 our scale, and standing for good. We are prioritizing our core markets, global platforms, and local gem brands that have the best prospects for profitable growth, and we are committed to reshaping our portfolio with strategic acquisitions and divestitures to further enhance our growth profile. Our consolidated net sales for fiscal 2025 declined 2 percent to $19.5 billion. On an organic basis, net sales decreased 2 percent compared to year-ago levels. Operating profit of $3.3 billion decreased 4 percent. Adjusted operating profit of $3.4 billion decreased 7 percent on a constant-currency basis. Diluted EPS declined 5 percent to $4.10. Adjusted diluted EPS of $4.21 decreased 7 percent on a constant-currency basis (See the “Non-GAAP Measures” section below for a description of our use of measures not defined by generally accepted accounting principles (GAAP)). Net cash provided by operations totaled $2,918 million in fiscal 2025 representing a conversion rate of 126 percent of net earnings, including earnings attributable to noncontrolling interests. This cash generation supported capital investments totaling $625 million, and our resulting free cash flow was $2,293 million at a conversion rate of 97 percent of adjusted net earnings, including earnings attributable to noncontrolling interests. We returned cash to shareholders through dividends totaling $1,339 million and share repurchases totaling $1,203 million (See the “Non-GAAP Measures” section below for a description of our use of measures not defined by GAAP). In fiscal 2025, the operating environment was characterized by significant volatility and uncertainty, resulting in value-seeking behaviors by consumers that were deeper and more prolonged than we expected. As a result, we made important changes to adapt to the evolving environment and put our business on a path back to growth. We increased investment to bring consumers greater value, which strengthened our pound volume performance as we exited the year. While the level of incremental investment resulted in fiscal 2025 financial results below our targeted ranges, we expect the improved pound volume and household penetration trends will translate into stronger top- and bottom-line performance over the long term. We delivered mixed performance against the three priorities we established at the beginning of the year: We did not achieve our objective of accelerating organic net sales growth, with full-year organic net sales declining 2 percent driven primarily by unfavorable organic net price realization and mix resulting from our increased investments in consumer value (see the ‘Non-GAAP Measures” section below for our use of this measure not defined by GAAP). We successfully created fuel for our investments, including generating industry-leading Holistic Margin Management (HMM) cost savings by increasingly applying digital and technology capabilities throughout our supply chain. We successfully drove strong cash generation, with free cash flow conversion finishing at 97 percent, which was above our full-year target of 95 percent. This enabled us to fund capital investment, raise our dividend, and continue our share repurchase activity. We also continued to reshape our portfolio, including acquisitions and divestitures that further improved 18 our portfolio’s ability to generate profitable growth over the long term (see the “Non-GAAP Measures” section below for our use of this measure not defined by GAAP). A detailed review of our fiscal 2025 performance compared to fiscal 2024 appears below in the section titled “Fiscal 2025 Consolidated Results of Operations.” A detailed review of our fiscal 2024 performance compared to our fiscal 2023 performance is set forth in Part II, Item 7 of our Form 10-K for the fiscal year ended May 26, 2024 under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Fiscal 2024 Consolidated Results of Operations,” which is incorporated herein by reference. In fiscal 2026, we plan to continue advancing our Accelerate strategy. Our key priorities are to return North America Retail to volume growth, Accelerate North America Pet growth with an expanded portfolio, and drive efficiencies to reinvest in growth. We expect category growth to be below our long-term projections, reflecting less benefit from net price realization and mix amid a continued challenging consumer backdrop. To strengthen our categories and market share performance, we plan to increase investment in consumer value, product news, innovation, and brand building, guided by our remarkable experience framework. This includes a significant strategic investment to launch Blue Buffalo into the fast-growing U.S. fresh pet food sub-category in calendar 2025. We expect the combination of these growth investments, input cost inflation, and a reset of corporate incentive will outpace expected HMM cost savings of 5 percent of cost of goods sold, savings from our global transformation initiative, and benefits from a 53rd week in fiscal 2026. In addition, we expect the net impact of the divestiture of our North American yogurt businesses and the Whitebridge Pet Brands acquisition will reduce adjusted operating profit growth by approximately 5 points in fiscal 2026. Based on these assumptions, our key full-year fiscal 2026 targets are summarized below: ● Organic net sales are expected to range between down 1 percent and up 1 percent. ● Adjusted operating profit is expected to be down 10 to 15 percent in constant currency from the base of $3.4 billion reported in fiscal 2025. ● Adjusted diluted EPS is expected to be down 10 to 15 percent in constant currency from the base of $4.21 earned in fiscal 2025. ● Free cash flow conversion is expected to be at least 95 percent of adjusted after-tax earnings. See the “Non-GAAP Measures” section below for a description of our use of measures not defined by GAAP. Certain terms used throughout this report are defined in a glossary in Item 8 of this report. FISCAL 2025 CONSOLIDATED RESULTS OF OPERATIONS In fiscal 2025, net sales and organic net sales decreased 2 percent compared to fiscal 2024. Operating profit of $3,305 million decreased 4 percent compared to fiscal 2024, primarily driven by unfavorable net price realization and mix, an increase in selling, general, and administrative (SG&A) expenses, legal and voluntary recall net recoveries recorded in fiscal 2024, a decrease in contributions from volume growth, higher restructuring and transformation charges, higher acquisition and divestiture transaction and integration costs, and an unfavorable change in the mark -to-market valuation of certain commodity positions and grain inventories. These impacts were partially offset by impairment charges recorded in fiscal 2024, a divestiture gain related to the sale of our Canada yogurt business in fiscal 2025, and lower input costs. Operating profit margin of 17.0 percent decreased 30 basis points. Adjusted operating profit of $3,353 million decreased 7 percent on a constant-currency basis, primarily driven by unfavorable net price realization and mix, an increase in SG&A expenses, and a decrease in contributions from volume growth, partially offset by lower input costs. Adjusted operating profit margin decreased 90 basis points to 17.2 percent. Diluted earnings per share of $4.10 decreased 5 percent compared to fiscal 2024. Adjusted diluted earnings per share of $4.21 decreased 7 percent on a constant-currency basis (see the “Non-GAAP Measures” section below for a description of our use of measures not defined by GAAP). 19 A summary of our consolidated financial results for fiscal 2025 follows: Fiscal 2025 In millions, except per share Fiscal 2025 vs. Fiscal 2024 Percent of Net Sales Constant- Currency Growth (a) Net sales $ 19,486.6 (2) % Operating profit 3,304.8 (4) % 17.0 % Net earnings attributable to General Mills 2,295.2 (8) % Diluted earnings per share $ 4.10 (5) % Organic net sales growth rate (a) (2) % Adjusted operating profit (a) 3,352.6 (7) % 17.2 % (7) % Adjusted diluted earnings per share (a) $ 4.21 (7) % (7) % (a) See the “Non-GAAP Measures” section below for our use of measures not defined by GAAP. Consolidated net sales were as follows: Fiscal 2025 Fiscal 2025 vs. Fiscal 2024 Fiscal 2024 Net sales (in millions) $ 19,486.6 (2) % $ 19,857.2 Contributions from volume growth (a) (1) pt Net price realization and mix (1) pt Foreign currency exchange Flat Note: Table may not foot due to rounding (a) Measured in tons based on the stated weight of our product shipments. Net sales in fiscal 2025 decreased 2 percent compared to fiscal 2024, driven by a decrease in contributions from volume growth and unfavorable net price realization and mix. Components of organic net sales growth are shown in the following table: Fiscal 2025 vs. Fiscal 2024 Contributions from organic volume growth (a) Flat Organic net price realization and mix (1) pt Organic net sales growth (2) pts Foreign currency exchange Flat Acquisitions and divestiture Flat Net sales growth (2) pts Note: Table may not foot due to rounding (a) Measured in tons based on the stated weight of our product shipments. Organic net sales in fiscal 2025 decreased 2 percent compared to fiscal 2024, driven by unfavorable organic net price realization and mix. Cost of sales decreased $172 million in fiscal 2025 to $12,754 million. The decrease was primarily driven by a $95 million decrease attributable to lower volume and an $89 million decrease attributable to product rate and mix. We recorded a $16 million net decrease in cost of sales related to the mark-to-market valuation of certain commodity positions and grain inventories in fiscal 2025, compared to a net decrease of $39 million in fiscal 2024 (please refer to Note 8 to the Consolidated Financial Statements in Item 8 of this report for additional information). We also recorded $9 million of restructuring charges in fiscal 2025 compared to $18 million of restructuring charges and $2 million of restructuring initiative project-related costs in cost of sales in fiscal 2024 (please refer to Note 4 to the Consolidated Financial Statements in Item 8 of this report for additional information). Gross margin decreased 3 percent in fiscal 2025 compared to fiscal 2024. Gross margin as a percent of net sales of 34.6 percent decreased 30 basis points compared to fiscal 2024. SG&A expenses increased $187 million to $3,446 million in fiscal 2025 compared to fiscal 2024 primarily driven by a legal recovery in fiscal 2024, transaction and integration costs recorded in fiscal 2025 related to the definitive agreements to sell our North American yogurt businesses and costs related to the Whitebridge Pet Brands acquisition, the addition of a pet food business in Europe in fiscal 20 2024, and net recoveries recorded in fiscal 2024 from the fiscal 2023 voluntary recall on certain international Häagen-Dazs ice cream products. SG&A expenses as a percent of net sales in fiscal 2025 increased 130 basis points compared to fiscal 2024. Divestitures gain, net totaled $96 million in fiscal 2025 related to the sale of our Canada yogurt business (please refer to Note 3 to the Consolidated Financial Statements in Item 8 of this report). Restructuring, transformation, impairment, and other exit costs totaled $78 million in fiscal 202 5 compared to $241 million in fiscal 2024. In fiscal 2025, we approved a multi-year global transformation initiative to drive increased productivity by enhancing end- to-end business processes, enabled by targeted organizational actions, and as a result, we recorded $70 million of charges in fiscal 2025. We also recorded $8 million of restructuring charges in fiscal 2025 related to actions previously announced. In fiscal 2024, we recorded a $117 million non-cash goodwill impairment charge related to our Latin America reporting unit and $103 million of non- cash impairment charges related to our Top Chews , True Chews , and EPIC brand intangible assets. In fiscal 2024, we approved restructuring actions to enhance the go-to-market commercial strategy and associated organizational structure of our North America Pet segment, and as a result, we recorded $17 million of charges in fiscal 2024. Please refer to Note 4 to the Consolidated Financial Statements in Item 8 of this report for additional information. Benefit plan non-service income totaled $54 million in fiscal 2025 compared to $76 million in fiscal 2024, primarily reflecting higher amortization of losses and higher interest costs (please refer to Note 14 to the Consolidated Financial Statements in Item 8 of this report for additional information). Interest, net for fiscal 2025 totaled $524 million, $45 million higher than fiscal 2024, primarily driven by higher average long-term debt levels. Our effective tax rate for fiscal 2025 was 20.2 percent compared to 19.6 percent in fiscal 2024. The 0.6 percentage point increase was primarily driven by certain nonrecurring tax benefits in fiscal 2024, partially offset by favorable earnings mix by jurisdiction in fiscal 2025. Our adjusted effective tax rate was 20.6 percent in fiscal 2025 compared to 20.1 percent in fiscal 2024 (see the “Non-GAAP Measures” section below for a description of our use of measures not defined by GAAP). The 0.5 percentage point increase was primarily due to certain nonrecurring tax benefits in fiscal 2024, partially offset by favorable earnings mix by jurisdiction in fiscal 2025. After-tax earnings from joint ventures decreased to $58 million in fiscal 2025 compared to $85 million in fiscal 2024, primarily driven by our share of asset impairment charges at CPW in fiscal 2025. On a constant -currency basis, after-tax earnings from joint ventures decreased 29 percent (see the “Non-GAAP Measures” section below for a description of our use of measures not defined by GAAP). The components of our joint ventures’ net sales growth are shown in the following table: Fiscal 2025 vs. Fiscal 2024 CPW HDJ Total Contributions from volume growth (a) (4) pts 4 pts Net price realization and mix 3 pts (1) pt Net sales growth in constant currency (1) pts 3 pts (1) pt Foreign currency exchange (3) pts (2) pts (3) pts Net sales growth (4) pts 1 pt (3) pts Note: Table may not foot due to rounding. (a) Measured in tons based on the stated weight of our product shipments. Net earnings attributable to noncontrolling interests increased to $24 million in fiscal 2025 compared to $22 million in fiscal 2024. Average diluted shares outstanding decreased by 22 million in fiscal 2025 from fiscal 2024 primarily due to share repurchase s. RESULTS OF SEGMENT OPERATIONS Our businesses are organized into four operating segments: North America Retail, International, North America Pet, and North America Foodservice. 21 The following tables provide the dollar amount and percentage of net sales and operating profit from each segment for fiscal 2025 and fiscal 2024: Fiscal Year 2025 2024 In Millions Dollars Percent of Total Dollars Percent of Total Net Sales North America Retail $ 11,907.0 61 % $ 12,473.4 63 % International 2,797.8 14 2,746.5 14 North America Pet 2,470.8 13 2,375.8 12 North America Foodservice 2,300.9 12 2,258.7 11 Total $ 19,476.5 100 % $ 19,854.4 100 % Segment Operating Profit North America Retail $ 2,729.9 73 % $ 3,080.4 77 % International 96.4 3 125.2 3 North America Pet 501.0 14 485.9 12 North America Foodservice 355.4 10 315.5 8 Total $ 3,682.7 100 % $ 4,007.0 100 % Net sales of $10.1 million in fiscal 2025 and $2.8 million in fiscal 2024 related to a business managed by our Strategic Growth Office are included within corporate and other net sales, which is reported separately from segment net sales. Segment operating profit as reviewed by our executive management excludes unallocated corporate items, net gain or loss on divestitures, and restructuring, transformation, impairment, and other exit costs that are centrally managed. NORTH AMERICA RETAIL SEGMENT Our North America Retail operating segment reflects business with a wide variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, convenience stores, and e-commerce grocery providers. Our product categories in this business segment are ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, snack bars, fruit snacks, savory snacks, and a wide variety of organic products including ready-to-eat cereal, frozen and shelf-stable vegetables, meal kits, fruit snacks and snack bars. North America Retail net sales were as follows: Fiscal 2025 Fiscal 2025 vs. 2024 Percentage Change Fiscal 2024 Net sales (in millions) $ 11,907.0 (5) % $ 12,473.4 Contributions from volume growth (a) (4) pts Net price realization and mix Flat Foreign currency exchange Flat Note: Table may not foot due to rounding. (a) Measured in tons based on the stated weight of our product shipments. North America Retail net sales decreased 5 percent in fiscal 2025 compared to fiscal 2024, driven by a decrease in contributions from volume growth. 22 The components of North America Retail organic net sales growth are shown in the following table: Fiscal 2025 vs. 2024 Percentage Change Contributions from organic volume growth (a) (2) pts Organic net price realization and mix (1) pt Organic net sales growth (3) pts Foreign currency exchange Flat Divestiture (b) (1) pt Net sales growth (5) pts Note: Table may not foot due to rounding. (a) Measured in tons based on the stated weight of our product shipments. (b) Divestiture of Canada yogurt business in the third quarter of fiscal 2025. Please refer to Note 3 to the Consolidated Financial Statements in Part II, Item 8 of this report. North America Retail organic net sales decreased 3 percent in fiscal 2025 compared to fiscal 2024, driven by a decrease in contributions from organic volume growth and unfavorable organic net price realization and mix. Net sales for our North America Retail operating units are shown in the following table: In Millions Fiscal 2025 Fiscal 2025 vs. 2024 Percentage Change Fiscal 2024 U.S. Meals & Baking Solutions $ 4,238.9 (2) % $ 4,324.3 U.S. Morning Foods 3,439.9 (3) % 3,561.8 U.S. Snacks 3,356.3 (5) % 3,538.9 Canada (a) 871.9 (17) % 1,048.4 Total $ 11,907.0 (5) % $ 12,473.4 (a) On a constant currency basis, Canada operating unit net sales decreased 14 percent in fiscal 2025. See the “Non-GAAP Measures” section below for our use of this measure not defined by GAAP. Segment operating profit decreased 11 percent to $2,730 million in fiscal 2025 compared to $3,080 million in fiscal 2024, primarily driven by a decrease in contributions from volume growth, higher input costs, and unfavorable net price realization and mix, partially offset by lower SG&A expenses. Segment operating profit decreased 11 percent on a constant-currency basis in fiscal 2025 compared to fiscal 2024 (see the “Non-GAAP Measures” section below for our use of this measure not defined by GAAP). INTERNATIONAL SEGMENT Our International operating segment consists of retail and foodservice businesses outside of the United States and Canada. Our product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks , snack bars, dessert and baking mixes, shelf-stable vegetables, and pet food products. We also sell super-premium ice cream and frozen desserts directly to consumers through owned retail shops. Our International segment also includes products manufactured in the United States for export, mainly to Caribbean and Latin American markets, as well as products we manufacture for sale to our international joint ventures. Revenu es from export activities are reported in the region or country where the end customer is located. International net sales were as follows: Fiscal 2025 Fiscal 2025 vs. 2024 Percentage Change Fiscal 2024 Net sales (in millions) $ 2,797.8 2 % $ 2,746.5 Contributions from volume growth (a) 3 pts Net price realization and mix 1 pt Foreign currency exchange (2) pts Note: Table may not foot due to rounding. (a) Measured in tons based on the stated weight of our product shipments. International net sales increased 2 percent in fiscal 2025 compared to fiscal 2024, driven by an increase in contributions from volume growth and favorable net price realization and mix, partially offset by unfavorable foreign currency exchange. 23 The components of International organic net sales growth are shown in the following table: Fiscal 2025 vs. 2024 Percentage Change Contributions from organic volume growth (a) 1 pt Organic net price realization and mix Flat Organic net sales growth Flat Foreign currency exchange (2) pts Acquisition (b) 4 pts Net sales growth 2 pts Note: Table may not foot due to rounding. (a) Measured in tons based on the stated weight of our product shipments. (b) Acquisition of a pet food business in Europe in fiscal 2024. Please refer to Note 3 to the Consolidated Financial Statements in Part II, Item 8 of this report. International organic net sales in fiscal 2025 essentially matched fiscal 2024. Segment operating profit decreased 23 percent to $96 million in fiscal 2025 compared to $125 million in 2024, primarily driven by higher SG&A expenses and unfavorable net price realization and mix, partially offset by lower input costs and an increase in contributions from volume growth. Segment operating profit decreased 33 percent on a constant-currency basis in fiscal 2025 compared to fiscal 2024 (see the “Non-GAAP Measures” section below for our use of this measure not defined by GAAP). NORTH AMERICA PET SEGMENT Our North America Pet operating segment includes pet food products sold primarily in the United States and Canada in national pet superstore chains, e-commerce retailers, grocery stores, regional pet store chains, mass merchandisers, and veterinary clinics and hospitals. Our product categories include dog and cat food (dry foods, wet foods, and treats) made with whole meats, fruits, and vegetables and other high-quality natural ingredients. Our tailored pet product offerings address specific dietary, lifestyle, and life- stage needs and span different product types, diet types, breed sizes for dogs, life stages, flavors, product functions, and textures and cuts for wet foods. North America Pet net sales were as follows: Fiscal 2025 Fiscal 2025 vs. 2024 Percentage Change Fiscal 2024 Net sales (in millions) $ 2,470.8 4 % $ 2,375.8 Contributions from volume growth (a) 4 pts Net price realization and mix Flat Foreign currency exchange Flat Note: Table may not foot due to rounding. (a) Measured in tons based on the stated weight of our product shipments. North America Pet net sales increased 4 percent in fiscal 2025 compared to fiscal 2024, driven by an increase in contributions from volume growth. 24 The components of North America Pet organic net sales growth are shown in the following table: Fiscal 2025 vs. 2024 Percentage Change Contributions from organic volume growth (a) 3 pts Organic net price realization and mix (2) pts Organic net sales growth Flat Foreign currency exchange Flat Acquisition (b) 4 pts Net sales growth 4 pts Note: Table may not foot due to rounding. (a) Measured in tons based on the stated weight of our product shipments. (b) Acquisition of Whitebridge Pet Brands business in fiscal 2025. Please refer to Note 3 to the Consolidated Financial Statements in Part II, Item 8 of this report. North America Pet organic net sales in fiscal 2025 essentially matched fiscal 2024. North America Pet operating profit increased 3 percent to $501 million in fiscal 2025, compared to $486 million in fiscal 2024, primarily driven by an increase in contributions from volume growth and lower input costs, partially offset by higher SG&A expenses, including increased media and advertising expenses, and unfavorable net price realization and mix. Segment operating profit increased 3 percent on a constant-currency basis in fiscal 2025 compared to fiscal 2024 (see the “Non-GAAP Measures” section below for our use of this measure not defined by GAAP). NORTH AMERICA FOODSERVICE SEGMENT Our North America Foodservice segment consists of foodservice businesses in the United States and Canada. Our major product categories in our North America Foodservice operating segment are ready-to-eat cereals, snacks, refrigerated yogurt, frozen meals, unbaked and fully baked frozen dough products, baking mixes, and bakery flour. Many products we sell are branded to the consumer and nearly all are branded to our customers. We sell to distributors and operators in many customer channels including foodservice, vending, and supermarket bakeries. North America Foodservice net sales were as follows: Fiscal 2025 Fiscal 2025 vs. 2024 Percentage Change Fiscal 2024 Net sales (in millions) $ 2,300.9 2 % $ 2,258.7 Contributions from volume growth (a) 1 pt Net price realization and mix 1 pt Foreign currency exchange Flat Note: Table may not foot due to rounding. (a) Measured in tons based on the stated weight of our product shipments. North America Foodservice net sales increased 2 percent in fiscal 2025 compared to fiscal 2024, driven by an increase in contributions from volume growth and favorable net price realization and mix. The components of North America Foodservice organic net sales growth are shown in the following table: Fiscal 2025 vs. 2024 Percentage Change Contributions from organic volume growth (a) 1 pt Organic net price realization and mix 1 pt Organic net sales growth 2 pts Foreign currency exchange Flat Net sales growth 2 pts Note: Table may not foot due to rounding. (a) Measured in tons based on the standard weight of our product shipments. 25 North America Foodservice organic net sales increased 2 percent in fiscal 2025 compared to fiscal 2024, driven by an increase in contributions from organic volume growth and favorable organic net price realization and mix. Segment operating profit increased 13 percent to $355 million in fiscal 2025, compared to $316 million in fiscal 2024, primarily driven by favorable net price realization and mix. Segment operating profit increased 13 percent on a constant-currency basis in fiscal 2025 compared to fiscal 2024 (see the “Non-GAAP Measures” section below for our use of this measure not defined by GAAP). UNALLOCATED CORPORATE ITEMS Unallocated corporate items include corporate overhead expenses, variances to planned domestic employee benefits and incentives, certain charitable contributions, restructuring initiative project-related costs, gains and losses on corporate investments, results from certain businesses managed by our Strategic Growth Office, and other items that are not part of our measurement of segment operating performance. These include gains and losses arising from the revaluation of certain grain inventories and gains and losses from mark- to-market valuation of certain commodity positions until passed back to our operating segments. These items affecting operating profit are centrally managed at the corporate level and are excluded from the measure of segment profitability reviewed by executive management. Under our supply chain organization, our manufacturing, warehouse, and distribution activities are substantially integrated across our operations in order to maximize efficiency and productivity. As a result, fixed assets and depreciation and amortization expenses are neither maintained nor available by operating segment. Unallocated corporate expense totaled $396 million in fiscal 2025 , compared to $334 million last year. In fiscal 2024, we recorded a $53 million legal recovery. We recorded $49 million of transaction costs related to the definitive agreements to sell our North American yogurt businesses and the Whitebridge Pet Brands acquisition in fiscal 2025, compared to $14 million of transaction costs in fiscal 2024, primarily related to our acquisition of a pet food business in Europe. We also recorded $14 million of integration costs in fiscal 2025, related to the acquisition of Whitebridge Pet Brands and the acquisition of a pet food business in Europe. In fiscal 2024, we recorded $30 million of net recoveries related to a voluntary recall on certain international Häagen-Dazs ice cream products in fiscal 2023. We recorded a $16 million net decrease in expense related to the mark-to-market valuation of certain commodity positions and grain inventories in fiscal 2025, compared to a $39 million net decrease in expense last year. In addition, we recorded $8 million of net losses related to valuation adjustments in fiscal 2025, compared to $18 million of net losses related to valuation adjustments and the sale of corporate investments in fiscal 2024. We recorded $9 million of restructuring charges and $1 million of restructuring initiative project-related costs in cost of sales in fiscal 2025, compared to $18 million of restructuring charges and $2 million of restructuring initiative project-related costs in cost of sales in fiscal 2024. Certain compensation and benefit related expenses decreased in fiscal 2025 compared to fiscal 2024. IMPACT OF INFLATION We experienced broad-based global input cost inflation of 4 percent in fiscal 2025 and fiscal 2024. We expect approximately 3 percent input cost inflation in fiscal 2026 before the impact of newly enacted tariffs. We expect the gross risk of newly enacted tariffs to be 1 to 2 percent of cost of goods sold, and we are attempting to mitigate tariff risk through various methods. We attempt to minimize the effects of inflation through HMM, Strategic Revenue Management (SRM), planning, and operating practices. Our market risk management practices are discussed in Item 7A of this report. LIQUIDITY AND CAPITAL RESOURCES The primary source of our liquidity is cash flow from operations. Over the most recent two-year period, our operations have generated $6.2 billion in cash. A substantial portion of this operating cash flow has been returned to shareholders through dividends and share repurchases. We also use cash from operations to fund our capital expenditures, acquisitions, and debt service. We typically use a combination of cash, notes payable, and long-term debt, and occasionally issue shares of common stock, to finance significant acquisitions. As of May 25, 2025, we had $316 million of cash and cash equivalents held in foreign jurisdictions. In anticipation of repatriating funds from foreign jurisdictions, we record local country withholding taxes on our international earnings, as applicable. We may repatriate our cash and cash equivalents held by our foreign subsidiaries without such funds being subject to further U.S. income tax liability. Earnings prior to fiscal 2018 from our foreign subsidiaries remain permanently reinvested in those jurisdictions. 26 Cash Flows from Operations Fiscal Year In Millions 2025 2024 Net earnings, including earnings attributable to noncontrolling interests $ 2,318.9 $ 2,518.6 Depreciation and amortization 539.0 552.7 After-tax earnings from joint ventures (57.6) (84.8) Distributions of earnings from joint ventures 44.6 50.4 Stock-based compensation 91.7 95.3 Deferred income taxes (120.9) (48.5) Pension and other postretirement benefit plan contributions (30.8) (30.1) Pension and other postretirement benefit plan costs (12.7) (27.0) Divestitures gain, net (95.9) - Restructuring, transformation, impairment, and other exit costs 74.3 223.5 Changes in current assets and liabilities, excluding the effects of acquisitions and divestitures 192.4 10.6 Other, net (24.8) 41.9 Net cash provided by operating activities $ 2,918.2 $ 3,302.6 During fiscal 2025, cash provided by operations was $2,918 million compared to $3,303 million in the same period last year. The $384 million decrease was primarily driven by a $296 million decrease in net earnings excluding the impact of the divestiture in fiscal 2025, and a $149 million change in restructuring, transformation, impairment, and other exit costs. We strive to grow core working capital at or below the rate of growth in our net sales. For fiscal 2025, core working capital net liability decreased 23 percent, compared to a net sales decrease of 2 percent. The core working capital net liability decreased $90 million from $393 million in fiscal 2024 to $303 million in fiscal 2025, primarily due to an increase in receivables, partially offset by an increase in accounts payable. Cash Flows from Investing Activities Fiscal Year In Millions 2025 2024 Purchases of land, buildings, and equipment $ (625.3) $ (774.1) Acquisitions, net of cash acquired (1,419.3) (451.9) Investments in affiliates, net 13.3 (2.7) Proceeds from disposal of land, buildings, and equipment 1.1 0.8 Proceeds from divestitures, net of cash divested 241.8 - Other, net (6.5) 30.5 Net cash used by investing activities $ (1,794.9) $ (1,197.4) In fiscal 2025, we used $1,795 million of cash through investing activities compared to $1,197 million in fiscal 2024. We invested $625 million in land, buildings, and equipment in fiscal 2025, a decrease of $149 million from fiscal 2024. During fiscal 2025, we acquired Whitebridge Pet Brands for $1,412 million cash, net of cash acquired. During fiscal 2025, we completed the sale of our Canada yogurt business for $242 million cash. During fiscal 2024, we acquired a pet food business in Europe for $426 million cash, net of cash acquired, and we paid an additional $8 million purchase price holdback after certain closing conditions were met in fiscal 2025. We expect capital expenditures to be approximately 3.5 percent of reported net sales in fiscal 2026. These expenditures will fund initiatives that are expected to fuel growth, support innovative products, and continue HMM initiatives throughout the supply chain. 27 Cash Flows from Financing Activities Fiscal Year In Millions 2025 2024 Change in notes payable $ 667.1 $ (20.5) Issuance of long-term debt 2,354.9 2,065.2 Payment of long-term debt (1,300.0) (901.5) Repurchase of Class A limited membership interests in General Mills Cereals, LLC (252.8) - Proceeds from common stock issued on exercised options 43.0 25.5 Purchases of common stock for treasury (1,202.9) (2,002.4) Dividends paid (1,338.7) (1,363.4) Distributions to noncontrolling interest holders (21.6) (21.3) Other, net (129.1) (53.9) Net cash used by financing activities $ (1,180.1) $ (2,272.3) Financing activities used $1,180 million of cash in fiscal 2025 compared to $2,272 million in fiscal 2024. We had $1,722 million of net debt issuances in fiscal 2025 compared to $1,143 million of net debt issuances in fiscal 2024. For more information on our debt issuances and payments, please refer to Note 9 to the Consolidated Financial Statements in Item 8 of this report. During fiscal 2025, we received $43 million of net proceeds from common stock issued on exercised options compared to $26 million in fiscal 2024. During fiscal 2025, we purchased the outstanding Class A limited membership interests in General Mills Cereals, LLC (GMC Class A Interests) from the third-party holder for $253 million. For more information, please refer to Note 10 to the Consolidated Financial Statements in Item 8 of this report. During fiscal 2025, we repurchased 19 million shares of our common stock for $1,203 million. During fiscal 2024, we repurchased 29 million shares of our common stock for $2,002 million. Dividends paid in fiscal 2025 totaled $1,339 million, or $2.40 per share. Dividends paid in fiscal 2024 totaled $1,363 million, or $2.36 per share. Selected Cash Flows from Joint Ventures Selected cash flows from our joint ventures are set forth in the following table: Fiscal Year Inflow (Outflow), in Millions 2025 2024 Investments in affiliates, net $ 13.3 $ (2.7) Dividends received 44.6 50.4 The following table details the credit facilities and lines of credit we had available as of May 25, 2025: In Millions Borrowing Capacity Borrowed Amount Committed credit facility expiring October 2029 $ 2,700.0 $ - Uncommitted credit facilities and lines of credit 703.7 7.6 Total $ 3,403.7 $ 7.6 To ensure availability of funds, we maintain bank credit lines and have commercial paper programs available to us in the United States and Europe. Certain of our long-term debt agreements and our credit facilities contain restrictive covenants. As of May 25, 2025, we were in compliance with all of these covenants. We have $1,528 million of long-term debt maturing in the next 12 months that is classified as current, including €500 million of 0.125 percent fixed-rate notes due November 15, 2025, €600 million of 0.45 percent fixed-rate notes due January 15, 2026, and €250 million 28 of floating-rate notes due April 22, 2026. We believe that cash flows from operations, together with available short- and long-term debt financing, will be adequate to meet our material contractual obligations and overall liquidity and capital needs for at least the next 12 months. As of May 25, 2025, our total debt, including the impact of derivative instruments designated as hedges, was 74 percent in fixed-rate and 26 percent in floating-rate instruments, compared to 85 percent in fixed-rate and 15 percent in floating-rate instruments on May 26, 2024. CRITICAL ACCOUNTING ESTIMATES For a complete description of our significant accounting policies, please see Note 2 to the Consolidated Financial Statements in Item 8 of this report. Our critical accounting estimates are those that have a meaningful impact on the reporting of our financial condition and results of operations. These estimates include our accounting for revenue recognition, valuation of long-lived assets, intangible assets, income taxes, and defined benefit pension, other postretirement benefit, and postemployment benefit plans. Revenue Recognition Our revenues are reported net of variable consideration and consideration payable to our customers, including trade promotion, consumer coupon redemption, and other reductions to the transaction price, including estimated allowances for returns, unsalable product, and prompt pay discounts. Trade promotions are recorded using significant judgment of estimated participation and performance levels for offered programs at the time of sale. Differences between the estimated and actual reduction to the transaction price are recognized as a change in estimate in a subsequent period. Our accrued trade and coupon promotion liabilities were $470 million as of May 25, 2025, and $425 million as of May 26, 2024. Because these amounts are significant, if our estimates are inaccurate we would have to make adjustments in subsequent periods that could have a significant effect on our results of operations. Valuation of Long-Lived Assets We estimate the useful lives of long -lived assets and make estimates concerning undiscounted cash flows to review for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Fair value is measured using discounted cash flows or independent appraisals, as appropriate. Intangible Assets Goodwill and other indefinite-lived intangible assets are not subject to amortization and are tested for impairment annually and whenever events or changes in circumstances indicate that impairment may have occurred. Our estimates of fair value for goodwill impairment testing are determined based on a discounted cash flow model. We use inputs from our long-range planning process to determine growth rates for sales and profits. We also make estimates of discount rates, perpetuity growth assumptions, market comparables, and other factors. We evaluate the useful lives of our other intangible assets, mainly brands, to determine if they are finite or indefinite-lived. Reaching a determination on useful life requires significant judgments and assumptions regarding the future effects of obsolescence, demand, competition, other economic factors (such as the stability of the industry, known technological advances, legislative action that results in an uncertain or changing regulatory environment, and expected changes in distribution channels), the level of required maintenance expenditures, and the expected lives of other related groups of assets. Intangible assets that are deemed to have finite lives are amortized on a straight-line basis over their useful lives, generally ranging from 4 to 30 years. Our estimate of the fair value of our brand assets is based on a discounted cash flow model using inputs which include projected revenues from our long-range plan, assumed royalty rates that could be payable if we did not own the brands, and a discount rate. As of May 25, 2025, we had $22 billion of goodwill and indefinite-lived intangible assets. While we currently believe that the fair value of each intangible exceeds its carrying value, and that those intangibles will contribute indefinitely to our cash flows, materially different assumptions regarding future performance of our businesses or a different weighted-average cost of capital could result in material impairment losses and amortization expense. We performed our fiscal 2025 assessment of our intangible assets as of the first day of the second quarter of fiscal 2025, and we determined there was no impairment of our intangible assets as their related fair values were substantially in excess of the carrying values, except for the Uncle Toby’s brand intangible asset. In addition, while having significant coverage as of our fiscal 2025 assessment date, the Progresso , Nudges , True Chews , and Kitano brand intangible assets had risk of decreasing coverage. We will continue to monitor these businesses for potential impairment . Income Taxes We apply a more-likely-than-not threshold to the recognition and derecognition of uncertain tax positions. Accordingly, we recognize the amount of tax benefit that has a greater than 50 percent likelihood of being ultimately realized upon settlement. Future changes in judgment related to the expected ultimate resolution of uncertain tax positions will affect earnings in the period of such change. For more information on income taxes, please see Note 15 to the Consolidated Financial Statements in Item 8 of this report. 29 Defined Benefit Pension, Other Postretirement Benefit, and Postemployment Benefit Plans We have defined benefit pension plans covering many employees in the United States, Canada, Switzerland, and the United Kingdom. We also sponsor plans that provide health care benefits to many of our retirees in the United States, Canada, and Brazil. Under certain circumstances, we also provide accruable benefits, primarily severance, to former and inactive employees in the United States, Canada, and Mexico. Please see Note 14 to the Consolidated Financial Statements in