Executive Summary
General Mills reported a solid QQ2 2024 (calendar quarter Q2 FY2024) despite a competitive and volatile macro backdrop. Revenue reached USD 5.24 billion, up 2.76% year over year and up 8.09% quarter over quarter, with gross profit of USD 1.93 billion and a gross margin of 36.85%. Operating income stood at USD 1.08 billion, delivering an operating margin of 20.57%, while net income was USD 0.80 billion and earnings per share (EPS) USD 1.43. The company demonstrated meaningful operating leverage and margin resilience, supported by price realization and cost discipline, contributing to YoY and QoQ gains in profitability
Key Performance Indicators
Key Insights
Revenue: USD 5.240B; YoY +2.76%; QoQ +8.09%
Gross Profit: USD 1.931B; Gross margin 36.85% (gross profit ratio 0.3685); YoY gross profit up 13.10%; QoQ up 14.35%
Operating Income: USD 1.078B; Operating margin 20.57% (ratio 0.2057); YoY +18.36%; QoQ +29.63%
Net Income: USD 0.796B; Net margin 15.18%; YoY +18.74%; QoQ +37.21%
EPS: USD 1.43; Diluted USD 1.42; YoY +21.19%; QoQ +38.83%
Cash Flow & capital allocation: Net cash from operating activities USD 1.118B; Free cash flow USD 0.966B; Capital ...
Financial Highlights
Revenue: USD 5.240B; YoY +2.76%; QoQ +8.09%
Gross Profit: USD 1.931B; Gross margin 36.85% (gross profit ratio 0.3685); YoY gross profit up 13.10%; QoQ up 14.35%
Operating Income: USD 1.078B; Operating margin 20.57% (ratio 0.2057); YoY +18.36%; QoQ +29.63%
Net Income: USD 0.796B; Net margin 15.18%; YoY +18.74%; QoQ +37.21%
EPS: USD 1.43; Diluted USD 1.42; YoY +21.19%; QoQ +38.83%
Cash Flow & capital allocation: Net cash from operating activities USD 1.118B; Free cash flow USD 0.966B; Capital expenditures USD (0.152)B; Dividends paid USD (0.343)B; Share repurchases USD (0.801)B; Net debt at period end USD 12.057B; Cash and near-term investments USD 0.594B; CCC notable at negative ~26.5 days due to payables smoothing; Current ratio 0.92; Quick ratio 0.68; Cash ratio 0.29
Balance sheet strength: Total assets USD 31.233B; Total liabilities USD 21.601B; Stockholders’ equity USD 9.379B; Goodwill and intangible assets USD 21.405B (Goodwill USD 14.441B; Intangibles USD 6.963B)
Valuation & efficiency: P/B 4.00; P/S 7.03; P/E 11.57; Dividend yield ~0.917%; Asset turnover ~0.157; ROA ~2.38%; ROE ~8.65%; Debt/Equity ~1.58; Total debt to capitalization ~0.612; Free cash flow yield per share USD 1.78.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.24B |
2.76% |
8.09% |
| Gross Profit |
1.93B |
13.10% |
14.35% |
| Operating Income |
1.08B |
18.36% |
29.63% |
| Net Income |
795.70M |
18.74% |
37.21% |
| EPS |
1.43 |
21.19% |
38.83% |
Key Financial Ratios
operatingProfitMargin
20.6%
operatingCashFlowPerShare
$2.07
freeCashFlowPerShare
$1.78
dividendPayoutRatio
42.5%
Management Commentary
Note: The earnings transcript data provided in the input is empty. As such, there are no management quotes or thematic quotes to cite from the QQ2 2024 call. If transcript excerpts become available, they should be grouped by themes (e.g., strategy, operations, market conditions) and linked to the corresponding metrics and forward guidance. In the absence of direct quotes, the analysis relies on reported results and implied management stance from the financials.
Forward Guidance
The QQ2 2024 release does not include explicit forward-looking targets in the provided data. Supported by a diversified portfolio and a resilient North American core, management implication is that General Mills will continue to leverage price realization and disciplined cost management to sustain margins. The likely trajectory, absent material commodity shocks or currency headwinds, points to modest organic revenue growth with ongoing margin expansion via mix and pricing power. Key factors to monitor include: (1) commodity and input cost evolution and their pass-through to prices, (2) currency translation effects given a multinational footprint, (3) competitive pricing dynamics in core cereals, snacks, and baking categories, and (4) the pace of share repurchases and dividend policy as part of capital allocation. Investors should watch quarterly margin progression (gross and operating), cash conversion, and any changes to the dividend payout or buyback cadence that could signal balance-sheet prioritization.