General Mills Inc (GIS) Q1 2025 Earnings Report

General Mills reported a solid first quarter to start fiscal 2025, with revenue of $4.8488 billion, gross profit of $1.6888 billion and net income of $0.5799 billion, translating to a net margin of roughly 11.96% and earnings per diluted share of $1.03. Management underscored ongoing investments to restore and extend competitiveness in North America Retail (NAR) while continuing to push value-driven growth across the portfolio. The company highlighted a favorable at-home consumption dynamic versus eating out, noting that food at home remains four times less expensive than dining out on average, which supports continued retail demand even as consumers face economic stress. In the near term, GIS sees continued progress from investments in its billion-dollar brands, with additional product, packaging, and media actions expected to lift performance into Q2 and beyond. Importantly, management reiterated a commitment to equal contributions from volume and price/mix for the full year, while maintaining productivity gains to offset cost pressure.

Key cash-flow and balance-sheet synthesis shows the company generated $624.2 million in operating cash flow and $483.9 million in free cash flow for the quarter, while capital expenditures totaled $140.3 million. The balance sheet remains leverage-positive with total debt of $13.32 billion and net debt around $12.85 billion; the company reported a current ratio of 0.66 and a debt-to-capitalization ratio of 0.59, reflecting a conservative financial posture that supports ongoing deleveraging and strategic reallocation. Management signaled a balanced approach to capital allocation—continuing share repurchases while pursuing bolt-on acquisitions in the $1–$2 billion range and divesting non-core assets (including the yogurt business) to reallocate capital toward growth opportunities.

Looking ahead, GIS communicated a measured but constructive outlook: natural category dynamics are improving gradually, with expectations for a back-half acceleration as initiatives from its large-brand portfolio take hold. While China remains a macro challenge, progress in Europe and Brazil provides pockets of upside, and ongoing investments in pet and cereal brands, as well as messaging and pack-size optimization, are intended to lift top-line progression. The near-term focus remains on strengthening competitive positioning, maintaining value-based consumer messaging, and delivering mid-to-high single-digit organic growth through a mix of volume, price/mix, and productivity gains.