Executive Summary
General Mills reported Q3 FY2025 net sales of $4.842 billion, down 5.0% year over year and 7.6% quarter over quarter, with gross profit of $1.639 billion and a gross margin of 33.85%. Reported net income was $625.6 million and diluted EPS was $1.12–$1.14 (reported EPS $1.14; EPS diluted $1.12 in the data). The quarter featured ongoing value-focused consumer dynamics, price realization in select categories, and an elevated emphasis on marketing for core brands. Management signaled a strategic shift toward reinvestment: leveraging HMM savings, the 53rd week, and category-specific marketing to reaccelerate organic growth in fiscal 2026. In particular, fruit snacks, Pillsbury, Blue Buffalo, Totino’s, and cereal were highlighted as areas where reinvestment and improved marketing could restore growth momentum. The company also flagged the need to balance price discipline with marketing and innovation, while navigating a softer cereal backdrop in the near term. Management expects to drive growth through a “few, bigger” innovation cadence and expanded media support, with a focus on value and core-brand marketing combined with selective new-product introductions. Near-term risks include a revenue cycle influenced by competitive dynamics and a circa 5-point headwind from the Yoplait transaction, which management noted could affect profitability until the transaction closes. Overall, GIS maintains a constructive long-run growth thesis anchored in brand equity, a diversified portfolio, and the ability to reinvest cash flow to regain growth trajectory into FY2026 and beyond.
Key Performance Indicators
QoQ: -15.12% | YoY:-4.00%
QoQ: -17.30% | YoY:-2.12%
QoQ: -21.38% | YoY:-6.64%
QoQ: -20.28% | YoY:-3.39%
Key Insights
Revenue: $4.8422B (+ YoY -5.04%, QoQ -7.59%); Gross Profit: $1.6391B (YoY -4.00%, QoQ -15.12%); Operating Income: $891.4M (YoY -2.12%, QoQ -17.30%); Net Income: $625.6M (YoY -6.64%, QoQ -21.38%); EPS: $1.14 (diluted $1.12; YoY -3.39%, QoQ -20.28%); Gross Margin: 33.85%; Operating Margin: 18.40%; Net Margin: 12.92%; EBITDA: $929.0M (EBITDA Margin ~19.19%); Cash from Operations: $531.9M; Free Cash Flow: $428.0M; Cash at End of Period: $521.3M; Total Debt: $14.187B; Net Debt: $13.666B; Current Rati...
Financial Highlights
Revenue: $4.8422B (+ YoY -5.04%, QoQ -7.59%); Gross Profit: $1.6391B (YoY -4.00%, QoQ -15.12%); Operating Income: $891.4M (YoY -2.12%, QoQ -17.30%); Net Income: $625.6M (YoY -6.64%, QoQ -21.38%); EPS: $1.14 (diluted $1.12; YoY -3.39%, QoQ -20.28%); Gross Margin: 33.85%; Operating Margin: 18.40%; Net Margin: 12.92%; EBITDA: $929.0M (EBITDA Margin ~19.19%); Cash from Operations: $531.9M; Free Cash Flow: $428.0M; Cash at End of Period: $521.3M; Total Debt: $14.187B; Net Debt: $13.666B; Current Ratio: 0.667; Quick Ratio: 0.437; Cash Ratio: 0.0662; Dividend Payout Ratio: 53.2%; Dividend Yield: 0.98%; P/BV: 3.66; P/S: 7.00; P/E: 13.55; ROA: 1.91%; ROE: 6.75%; ROCE: 3.59%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.84B |
-5.04% |
-7.59% |
| Gross Profit |
1.64B |
-4.00% |
-15.12% |
| Operating Income |
891.40M |
-2.12% |
-17.30% |
| Net Income |
625.60M |
-6.64% |
-21.38% |
| EPS |
1.14 |
-3.39% |
-20.28% |
Key Financial Ratios
operatingProfitMargin
18.4%
operatingCashFlowPerShare
$0.96
freeCashFlowPerShare
$0.78
dividendPayoutRatio
53.2%
Management Commentary
- Strategy and value focus: Management emphasized that consumers are seeking value, and GIS intends to reinvest savings to drive growth. Quote: "consumers are seeking value as much or more than they had when our fiscal year began." (Jeff Harmening) - Reinforcement of reinvestment: The team signaled a plan to reallocate efficiency gains toward growth initiatives, including the HMM savings and the 53rd week, plus targeted marketing and product introductions. Quote: "the job to do now is to reinvest our HMM savings, to reinvest in the 53rd week as well as these efficiencies to get back to growth." (Jeff Harmening) - Innovation framework and portfolio discipline: The company reiterated a shift toward fewer, bigger innovations with stronger support, pointing to examples like Cheerios Protein, Old El Paso, Nature Valley, and new bars in Asia/Europe, while maintaining core-brand marketing intensity. Quote: "fewer, but bigger" innovations and stronger marketing backing those ideas. (Jeff Harmening) - Cereal and core-brand recovery: GIS anticipated improved cereal performance in Q4 due to higher media spend, better merchandising, and an offset from inventory normalization. Quote: "we have an increase in media... a really good promotion in the fourth quarter" (Jeff Harmening) - Caution on headwinds and flexibility: Management acknowledged potential headwinds including the Yoplait transaction and the need for flexibility to reallocate investments as market dynamics evolve. Quote: references to Yoplait headwind and the importance of flexibility going into 2026 (Kofi Bruce discusses posture for next year).
consumers are seeking value as much or more than they had when our fiscal year began.
— Jeff Harmening
the theme for next year is probably going to be fewer, but bigger.
— Jeff Harmening
Forward Guidance
Near term, GIS plans to fund growth through reinvestment of efficiency savings (HMM) and the 53rd week, with a continued emphasis on price/mix discipline, value messaging, and marketing intensity on core brands. The company signaled a path back to growth in FY2026, aided by targeted investments in high-potential categories (notably fruit snacks, cereal, pillsbury-based products, and snacks) and the introduction of “fewer, bigger” innovations supported by increased media spend. Management also indicated ongoing category-by-category optimization via the Remarkable Experience framework to ensure the right balance of price points, promotions, and product development. Risks to the guidance include: 1) ongoing consumer value pressures and inflation, 2) execution risk around faster-than-expected labors of higher marketing spend and innovation cadence, and 3) the timing and financial impact of the Yoplait transaction which could introduce a ~5 percentage-point headwind to profit before the close. Key monitoring factors for investors include: advancement of top-line growth in snacks and Bellwether brands, the pace of margin recovery through price/mix and cost savings, progress in cereal recovery in Q4, and the effectiveness of reinvestment in driving sustainable volume and share gains.