General Mills, Inc. (GIS) Bundle
A Brief History of General Mills, Inc.
Company Overview
General Mills, Inc. (NYSE: GIS) is a global leader in the food industry, operating in more than 100 countries with a diverse portfolio of brands that include Cheerios, Betty Crocker, and Yoplait. As of August 25, 2024, the company reported total assets of $31.77 billion and total liabilities of $22.24 billion, resulting in stockholders' equity of $9.53 billion.
Financial Performance
For the first quarter of fiscal 2025, General Mills reported net earnings of $579.9 million, a decrease from $673.5 million in the same quarter of the previous year. This resulted in diluted earnings per share of $1.03, down from $1.14.
| Financial Metric | Q1 FY2025 | Q1 FY2024 |
|---|---|---|
| Net Earnings (in millions) | $579.9 | $673.5 |
| Earnings per Share (diluted) | $1.03 | $1.14 |
| Cash Provided by Operations (in millions) | $624.2 | $378.1 |
| Dividends Paid (in millions) | $338 | $348 |
Debt and Liquidity
As of August 25, 2024, General Mills had total long-term debt of $11.43 billion, with $1.64 billion classified as current. The company maintained compliance with all covenants related to its debt agreements. The cash flow from operations was significantly enhanced, amounting to $624 million, primarily due to improved management of current assets and liabilities.
| Debt Component | Amount (in millions) |
|---|---|
| Total Long-term Debt | $11,431.3 |
| Current Portion of Long-term Debt | $1,640.0 |
| Cash and Cash Equivalents | $468.1 |
Market Position and Strategy
General Mills continues to adapt its strategies to changing consumer preferences, focusing on health and wellness. The company has also made significant investments in digital marketing and e-commerce to enhance its market presence. Its international operations have seen varied performance, with North America Retail experiencing a decline of 7% in operating profit.
Recent Developments
In fiscal 2024, General Mills faced challenges, including a $117.1 million goodwill impairment charge due to lower future profitability projections in its Latin America reporting unit. This charge reflects the company's proactive approach to managing its asset valuations amidst changing market conditions.
| Goodwill and Impairment | Amount (in millions) |
|---|---|
| Total Goodwill | $14,787.7 |
| Goodwill Impairment Charge | $117.1 |
Future Outlook
Looking ahead, General Mills is focusing on innovation within its product lines and expanding its sustainability efforts. The company remains committed to delivering value to its shareholders while navigating the complexities of the global food market.
A Who Owns General Mills, Inc. (GIS)
Shareholder Composition
As of 2024, General Mills, Inc. (GIS) has a diverse set of shareholders, including institutional investors, mutual funds, and individual shareholders. The following table provides a breakdown of the largest shareholders:
| Shareholder Type | Number of Shares (in millions) | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 359.2 | 64.6% |
| Mutual Funds | 150.5 | 27.0% |
| Individual Shareholders | 45.3 | 8.4% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of General Mills as of 2024:
| Institution | Number of Shares (in millions) | Percentage of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 60.8 | 10.9% |
| BlackRock, Inc. | 55.4 | 9.8% |
| State Street Corporation | 40.2 | 7.1% |
| Wellington Management Company LLP | 30.1 | 5.4% |
| Invesco Ltd. | 28.6 | 5.1% |
Executive Ownership
As of 2024, the executive team at General Mills also holds a significant amount of shares. The following table summarizes ownership by key executives:
| Executive | Position | Number of Shares Owned (in millions) | Percentage of Total Shares |
|---|---|---|---|
| Jeffrey L. Harmening | Chairman & CEO | 1.5 | 0.3% |
| Jodi J. Allen | Chief Operating Officer | 0.8 | 0.1% |
| Shawn O’Grady | Chief Financial Officer | 0.5 | 0.1% |
Noncontrolling Interests
General Mills also has noncontrolling interests in various joint ventures, which include the General Mills Cereals, LLC (GMC). The current value of preferred distributions for GMC's Class A Interests is estimated at $251.5 million as of June 1, 2024.
Market Capitalization
The market capitalization of General Mills as of August 25, 2024, is approximately $37.5 billion, based on a share price of $67.21.
Share Repurchase Program
General Mills has an active share repurchase program. The following table summarizes the recent share repurchases:
| Period | Total Shares Purchased (in millions) | Average Price Paid per Share |
|---|---|---|
| Q1 2025 | 4.5 | $67.21 |
| Q2 2024 | 6.4 | $78.58 |
Dividend Policy
General Mills has a history of paying dividends. The dividend declared for the quarter ended August 25, 2024, was $0.60 per share, totaling $337.8 million.
General Mills, Inc. (GIS) Mission Statement
Mission Statement Overview
General Mills, Inc. is committed to nourishing lives through food and has established a mission statement that emphasizes its dedication to sustainability, innovation, and community engagement. The mission reflects the company's focus on delivering high-quality products that meet consumer needs while fostering a positive impact on the environment and society.
Key Elements of the Mission Statement
- Nourishing Lives: The core purpose of General Mills is to nourish consumers through a diverse array of food products.
- Sustainability: The company integrates sustainable practices in its operations, aiming to reduce its environmental footprint.
- Innovation: General Mills strives for continuous innovation to meet changing consumer preferences and enhance product offerings.
- Community Engagement: The company actively engages with communities to support food security and promote healthy eating.
Financial Performance Indicators
The mission statement is supported by the company’s financial performance, which is crucial for its ability to fulfill its commitments. Below is a summary of General Mills' financial metrics as of the first quarter of fiscal 2025:
| Metric | Value (in Millions) | Year-over-Year Change (%) |
|---|---|---|
| Net Sales | $4,848.1 | (1)% |
| Operating Profit | $831.5 | (11)% |
| Net Earnings Attributable to General Mills | $579.9 | (14)% |
| Diluted Earnings Per Share | $1.03 | (10)% |
| Adjusted Operating Profit | $865.3 | (4)% |
Market Position and Strategy
General Mills operates in a competitive landscape, focusing on its strong brand portfolio and market presence. The company has outlined strategic priorities to drive growth and enhance its mission, including:
- Product Diversification: Expanding product lines to cater to a broader audience.
- Global Reach: Strengthening international market presence to boost sales and brand recognition.
- Sustainable Practices: Implementing environmentally friendly practices throughout the supply chain.
Recent Developments
As of August 25, 2024, General Mills has taken significant steps to align with its mission statement, including:
- Investing in sustainable agriculture initiatives to support farmers and reduce carbon emissions.
- Launching new product lines that focus on health and wellness, responding to consumer demand for nutritious options.
- Engaging in community programs aimed at reducing food insecurity.
Conclusion on Mission Alignment
The mission statement of General Mills is reflected in its financial performance and strategic initiatives. The company’s focus on nourishing lives, sustainability, innovation, and community engagement positions it well for future growth and alignment with consumer values.
How General Mills, Inc. (GIS) Works
Financial Performance Overview
As of the first quarter of fiscal 2025, General Mills reported net sales of $4,848.1 million, reflecting a 1% decrease compared to the same period in fiscal 2024, which had net sales of $4,904.7 million. The operating profit was $831.5 million, a decrease of 11%. The net earnings attributable to General Mills decreased by 14% to $579.9 million, while diluted earnings per share fell by 10% to $1.03.
| Metric | Q1 Fiscal 2025 | Q1 Fiscal 2024 | Change (%) |
|---|---|---|---|
| Net Sales (in millions) | $4,848.1 | $4,904.7 | -1% |
| Operating Profit (in millions) | $831.5 | $935.5 | -11% |
| Net Earnings (in millions) | $579.9 | $673.5 | -14% |
| Diluted Earnings per Share | $1.03 | $1.15 | -10% |
Sales Breakdown
Net sales by segment for the first quarter of fiscal 2025 are as follows:
| Segment | Net Sales (in millions) | Change (%) |
|---|---|---|
| U.S. Snacks | $1,106.8 | -5% |
| Cereal | $793.1 | -3% |
| Convenient Meals | $678.9 | 2% |
| Pet | $604.6 | 4% |
| Dough | $517.8 | -3% |
| Baking Mixes and Ingredients | $457.1 | -2% |
| Yogurt | $371.9 | 1% |
| Super-Premium Ice Cream | $212.9 | -5% |
Operating Costs
The cost of sales increased by $25 million to $3,159 million in the first quarter of fiscal 2025. This increase was attributed to a $7 million increase due to volume and a $47 million decline in product rate and mix.
Cash Flow and Liquidity
Cash provided by operations reached $624 million in the first quarter of fiscal 2025, up from $378 million in the same period last year, primarily driven by a $350 million change in current assets and liabilities.
| Cash Flow Metric | Q1 Fiscal 2025 (in millions) | Q1 Fiscal 2024 (in millions) |
|---|---|---|
| Cash Provided by Operating Activities | $624 | $378 |
| Cash Used by Investing Activities | ($148) | ($136) |
| Cash Used by Financing Activities | ($429) | ($334) |
Debt and Interest Obligations
As of August 25, 2024, General Mills had total long-term debt with a fair value of $12,653.5 million and a carrying amount of $13,071.3 million. The weighted average interest rate on notes payable was 5.8%.
| Debt Metric | Amount (in millions) |
|---|---|
| Long-Term Debt Fair Value | $12,653.5 |
| Long-Term Debt Carrying Amount | $13,071.3 |
| Weighted Average Interest Rate | 5.8% |
Shareholder Returns
In the first quarter of fiscal 2025, General Mills paid dividends totaling $338 million, a decrease from $348 million in the same quarter of the previous year. Share repurchases amounted to $300 million in Q1 FY2025 compared to $500 million in Q1 FY2024.
| Return Metric | Q1 Fiscal 2025 (in millions) | Q1 Fiscal 2024 (in millions) |
|---|---|---|
| Dividends Paid | $338 | $348 |
| Share Repurchases | $300 | $500 |
How General Mills, Inc. (GIS) Makes Money
Revenue Streams
General Mills generates revenue from various segments, primarily categorized into North America Retail, International, North America Pet, and North America Foodservice. For the first quarter of fiscal 2025, the breakdown of net sales across these segments was as follows:
| Segment | Net Sales (in millions) | Change vs. Previous Year |
|---|---|---|
| North America Retail | $3,016.6 | (2)% |
| International | $717.0 | Flat |
| North America Pet | $576.1 | (1)% |
| North America Foodservice | $536.2 | Flat |
| Total Net Sales | $4,848.1 | (1)% |
Operating Profit
Operating profit for General Mills in the first quarter of fiscal 2025 was reported as $831.5 million, a decline of 11% from $930.0 million in the same period of fiscal 2024. The operating profit margin decreased to 17.2% from 18.9% in the prior year, primarily due to increased costs and lower sales in key segments.
Cost of Goods Sold (COGS)
The cost of goods sold for the first quarter of fiscal 2025 was $3,159.3 million, compared to $3,134.2 million in the same quarter of fiscal 2024. The increase in COGS can be attributed to higher input costs and changes in product mix.
Segment Performance
The performance of individual segments highlights the challenges and opportunities within General Mills' operations:
| Segment | Operating Profit (in millions) | Change vs. Previous Year |
|---|---|---|
| North America Retail | $745.7 | (7)% |
| International | $20.9 | (58)% |
| North America Pet | $119.4 | 7% |
| North America Foodservice | $71.5 | 21% |
| Total Segment Operating Profit | $957.5 | (6)% |
Market Trends and Growth Factors
- North America Retail's decline was driven by lower volume contributions, particularly in U.S. Snacks and U.S. Morning Foods, which saw decreases of 5% and 3%, respectively.
- International sales remained flat, with a notable decline in operating profit largely due to unfavorable currency impacts and higher expenses.
- The North America Pet segment showed resilience, with a 7% increase in operating profit attributed to lower input costs.
- North America Foodservice benefited from lower input costs, resulting in a significant 21% increase in operating profit.
Financial Summary
For the first quarter of fiscal 2025, the consolidated financial performance is summarized as follows:
| Metric | Value |
|---|---|
| Net Earnings (in millions) | $579.9 |
| Diluted Earnings Per Share | $1.03 |
| Adjusted Operating Profit (in millions) | $865.3 |
| Adjusted Diluted Earnings Per Share | $1.07 |
Investment and Cash Flow
Cash provided by operating activities during the first quarter of fiscal 2025 was $624 million, an increase from $378 million in the same period last year. This increase was driven by favorable changes in working capital.
Debt and Liquidity
As of August 25, 2024, General Mills had total long-term debt of approximately $12.65 billion. The company maintains credit facilities totaling $3.4 billion, ensuring adequate liquidity for operational needs.
Overall, General Mills continues to navigate a competitive landscape with a diversified portfolio, while focusing on cost management and strategic growth initiatives.
General Mills, Inc. (GIS) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support