Executive Summary
General Mills reported a solid QQ2 2025 performance with meaningful year-over-year growth in revenue and earnings, supported by favorable pricing, product mix, and ongoing operating discipline. Revenue reached $5.240 billion, up approximately 11% year over year, while gross margin stood at 36.85% and operating margin at 20.57%, underscoring leverage in the cost base and price realization. Net income of $795.7 million and diluted EPS of $1.42–$1.43 reflected strong profitability alongside disciplined cost management and share repurchases. Cash generation remained robust, with operating cash flow of $1.151 billion and free cash flow of about $0.990 billion, enabling continued capital allocation to dividends and buybacks.
The balance sheet shows a cash position of $2.2928 billion and total debt of $14.5216 billion, yielding a net debt of $12.2288 billion. Liquidity metrics are modest by some consumer staples standards (current ratio roughly 0.92, quick ratio ~0.68, cash ratio ~0.29), indicating a near-term liquidity profile that relies on ongoing operating cash flow and disciplined working capital management. The company demonstrated strong profitability and cash profitability relative to revenue, but carries a meaningful debt load that must be managed as the business cycles.
Management commentary (as implied by results and typical guidance) emphasizes pricing power, efficiency programs, and a focus on returning capital to shareholders. While no explicit forward guidance is included in the provided data, the quarterly results underscore General Mills’ ability to sustain margins and generate cash flow, supporting a constructive long-term investment thesis contingent on commodity dynamics, currency effects, and continued execution on cost and mix optimization.
Key Performance Indicators
Key Insights
Revenue: $5.240B; YoY +11.16%, QoQ 0.00%.
Gross Profit: $1.931B; YoY +14.38%, Gross Margin 36.85%.
Operating Income: $1.078B; YoY +38.33%, Operating Margin 20.57%.
Net Income: $0.796B; YoY +42.73%, Net Margin 15.18%.
EPS (GAAP): $1.43; Diluted EPS: $1.42; YoY EPS +45.92%, QoQ 0.00%.
EBITDA: $1.209B; EBITDA Margin 23.06%.
Cash Flow: Operating Cash Flow $1.151B; Free Cash Flow $0.990B.
Capital Allocation: Net debt $12.228B; Dividends paid $338M; Share repurchases $300M; Cash at end of period $2.29...
Financial Highlights
Revenue: $5.240B; YoY +11.16%, QoQ 0.00%.
Gross Profit: $1.931B; YoY +14.38%, Gross Margin 36.85%.
Operating Income: $1.078B; YoY +38.33%, Operating Margin 20.57%.
Net Income: $0.796B; YoY +42.73%, Net Margin 15.18%.
EPS (GAAP): $1.43; Diluted EPS: $1.42; YoY EPS +45.92%, QoQ 0.00%.
EBITDA: $1.209B; EBITDA Margin 23.06%.
Cash Flow: Operating Cash Flow $1.151B; Free Cash Flow $0.990B.
Capital Allocation: Net debt $12.228B; Dividends paid $338M; Share repurchases $300M; Cash at end of period $2.293B.
Liquidity and Leverage: Current ratio 0.92; Quick ratio 0.68; Debt to capital 0.612; Debt to equity 1.58; Long-term debt $12.435B; Total debt $14.522B; Cash $2.293B; Net debt $12.229B.
Valuation Context: P/E roughly 11.5x; P/B ~3.97x; P/S ~6.96x; EV/EBITDA around 40.3x; Dividend yield ~0.93%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
5.24B |
11.16% |
0.00% |
| Gross Profit |
1.93B |
14.38% |
0.00% |
| Operating Income |
1.08B |
38.33% |
0.00% |
| Net Income |
795.70M |
42.73% |
0.00% |
| EPS |
1.43 |
45.92% |
0.00% |
Key Financial Ratios
operatingProfitMargin
20.6%
operatingCashFlowPerShare
$2.07
freeCashFlowPerShare
$1.78
dividendPayoutRatio
42.5%
Management Commentary
No earnings transcript data provided for QQ2 2025. transcriptHighlights unavailable pending transcript access. transcriptQuotes: {"quote1":"N/A","quote2":"N/A","quote1Name":"N/A","quote2Name":"N/A"}
Forward Guidance
Forward-looking assessment is constrained by the absence of explicit guidance in the provided data. Key factors that would shape the outlook include: 1) pricing power and mix optimization across core brands (e.g., cereals, snacks, baking, pet food) to sustain or improve gross margins; 2) continued efficiency programs and productivity gains to support operating margin expansion; 3) commodity cost trends (grains, dairy, edible oils) and currency headwinds/foxes that could affect input costs and pricing strategy; 4) cash flow discipline to fund dividends and share repurchases while managing leverage. Based on current FCF generation (~$1.0B) and a dividend payout around 42.5%, the company appears capable of sustaining capital returns even with moderate top-line growth. Investors should monitor: commodity cost volatility, currency impact on international segments, retail channel mix shifts, and ongoing cost-reduction initiatives that could lift margins.