General Mills (GIS) Q2 2025 (Q&A) earnings summary

Executive summary

• Net sales increased 2% year-over-year in Q2 2025 to $5.24B, with organic net sales up 1% due to volume growth, partially offset by unfavorable price/mix.

• Operating profit rose 33% to $1.08B, driven by lower restructuring charges, lower input costs, and favorable mark-to-market commodity valuations.

• Diluted EPS grew 39% to $1.42; adjusted diluted EPS increased 12% in constant currency.

• Q2 results benefited from timing items expected to reverse in H2; full-year outlook updated for higher investment and revised guidance.

• Fiscal 2025 guidance revised downward to reflect increased investment aimed at driving volume and share gains.

Financial highlights

• Q2 net sales: $5,240.1M (+2% YoY); six-month net sales: $10,088.2M (flat YoY).

• Q2 operating profit: $1,077.9M (+33% YoY); six-month: $1,909.4M (+10% YoY).

• Q2 adjusted operating profit up 7% in constant currency; adjusted diluted EPS up 12%.

• Q2 gross margin up 250 bps to 36.9%; adjusted gross margin up 130 bps to 36.3%.

• Q2 operating profit margin: 20.6% (+480 bps YoY); adjusted operating profit margin: 20.3%.

Outlook and guidance

• Organic net sales for FY25 expected flat to up 1%, now targeting lower end due to increased promotions.

• Adjusted operating profit expected down 4% to down 2% in constant currency; adjusted diluted EPS expected down 3% to down 1%.

• Free cash flow conversion expected at least 95% of adjusted after-tax earnings.

• Guidance excludes impact from pending yogurt divestitures and Whitebridge Pet Brands acquisition.

• Increased brand-building and promotional investment planned to drive improved volume performance.