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General Mills Second-quarter Fiscal 2025 Fiscal 2025 Q2 Earnings December 18, 2024 1
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General Mills Second-quarter Fiscal 2025 A Reminder on Forward-looking Statements 2 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management’s current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. In particular, our predictions about future net sales and earnings could be affected by a variety of factors, including: disruptions or inefficiencies in the supply chain; competitive dynamics in the consumer foods industry and the markets for our products, including new product introductions, advertising activities, pricing actions, and promotional activities of our competitors; economic conditions, including changes in inflation rates, interest rates, tax rates, or the availability of capital; product development and innovation; consumer acceptance of new products and product improvements; consumer reaction to pricing actions and changes in promotion levels; acquisitions or dispositions of businesses or assets; changes in capital structure; changes in the legal and regulatory environment, including tax legislation, labeling and advertising regulations, and litigation; impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets, or changes in the useful lives of other intangible assets; changes in accounting standards and the impact of significant accounting estimates; product quality and safety issues, including recalls and product liability; changes in consumer demand for our products; effectiveness of advertising, marketing, and promotional programs; changes in consumer behavior, trends, and preferences, including weight loss trends; consumer perception of health- related issues, including obesity; consolidation in the retail environment; changes in purchasing and inventory levels of significant customers; fluctuations in the cost and availability of supply chain resources, including raw materials, packaging, energy, and transportation; effectiveness of restructuring and cost saving initiatives; volatility in the market value of derivatives used to manage price risk for certain commodities; benefit plan expenses due to changes in plan asset values and discount rates used to determine plan liabilities; failure or breach of our information technology systems; foreign economic conditions, including currency rate fluctuations; and political unrest in foreign markets and economic uncertainty due to terrorism or war. The company undertakes no obligation to publicly revise any forward-looking statement to reflect any future events or circumstances.
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General Mills Second-quarter Fiscal 2025 Jeff Harmening Chairman and Chief Executive Officer 3
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General Mills Second-quarter Fiscal 2025 • Drove Encouraging Improvement in Pound Volume and Market Share in First Half • Timing Benefits Amplified Growth in Q2; Expected to Reverse in Second Half • Revising F25 Guidance to Reflect Increased Investment to Drive Volume and Market Share Gains Today’s Key Messages 4
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General Mills Second-quarter Fiscal 2025 Second-quarter and YTD Fiscal 2025 Performance (1) Non-GAAP measure. See appendix for reconciliation (2) Growth rates in constant currency. Non-GAAP measures. See appendix for reconciliation 5 Q2 includes a 1.5-point benefit to net sales and a 6-point benefit to adj. operating profit and adj. diluted EPS from timing-related items that are expected to reverse in 2H Organic Net Sales¹ Adjusted Op. Profit² Adjusted Diluted EPS² +1% +7% +12% F25 Q2 Flat +2% +6% F25 YTD Organic Net Sales¹ Adjusted Diluted EPS² +1% +7% F25 Q2 Flat +2% F25 YTD
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General Mills Second-quarter Fiscal 2025 Advancing Our Fiscal 2025 Priorities Accelerate Organic Sales Create Fuel for Investment Drive Strong Cash Generation 1 2 3 Improve Competitiveness by Delivering Remarkable Experiences Across Our Portfolio Generate HMM Cost Savings to Offset Inflation and Accelerate Brand Investment Continue Robust Cash Conversion and Capital Allocation Discipline 6
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General Mills Second-quarter Fiscal 2025 Improving Market Share Performance Across the Enterprise with Pounds Improving Ahead of Retail Dollar Sales 7 16% 38% F25 Q1 F25 Q2 1 F25 Priority 15% 56% F25 Q1 F25 Q2 • All Four Segments Drove Improved Pound and Dollar Share Trends in Q2 • Increased Pound Share and Maintained Dollar Share in U.S. Pet Food in Q2 Sources: North America Pet - NIQ Pet Retail Plus; North America Foodservice – Circana Supply Track through October; International – NIQ through October for Brazil, data through November for all remaining markets; all other categories – NIQ xAOC Priority Business defined as Top 10 U.S. categories and Global Platforms/Local Gems in remaining Core Markets General Mills % Priority Business Holding or Growing Pound Share General Mills % Priority Business Holding or Growing Dollar Share
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General Mills Second-quarter Fiscal 2025 8 11% 23% 50% F25 Q1 F25 Q2 Latest 5 Weeks % of Top 10 U.S. Retail Categories Holding or Growing Dollar Share 11% 58% 58% F25 Q1 F25 Q2 Latest 5 Weeks % of Top 10 U.S. Retail Categories Holding or Growing Pound Share • Improved Pound and Dollar Share Trends in Q2 • Seven of Top Ten U.S. Categories Strengthened Retail Sales vs. Q1 Desserts Soup Grain Snacks Fruit Snacks Mexican Cereal Improved Competitiveness in North America Retail in Q2 1 F25 Priority Broad-based Share Improvement Source: NIQ xAOC, 5 weeks ended 11/30/24 inclusive of later Thanksgiving timing in F25 Yogurt
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General Mills Second-quarter Fiscal 2025 Improved Competitiveness Across N.A. Retail Leveraging the Remarkable Experience Framework 9 1 F25 Priority
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General Mills Second-quarter Fiscal 2025 Improving Value and Adding News to Strengthen Refrigerated Dough Performance 10 1 F24 Priority Improving Value Expanding Product News Increasing Brand Building Accelerating Cookie Momentum Leveraging Increased Capacity and Innovation to Accelerate Cookie Growth Significantly Increasing Media Investment in Q3 Stepping Up Renovation News to 30% of Portfolio in Q3 Increasing Promotional Investment in 2H $
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General Mills Second-quarter Fiscal 2025 -0.2 -0.1 0.0 0.1 F24 Q3 F24 Q4 F25 Q1 F25 Q2 Pound Share vs. LY Improved Competitiveness in North America Pet in Q2 11 • Blue Buffalo Grew Pound Share and Held Dollar Share in Q2 • Continued Strong Growth on Life Protection Formula • Encouraging Improvement on Wilderness and Wet Food; Early Positive Signs on Treats • Welcoming Whitebridge Pet Brands Source: NIQ Pet Retail Plus Building Momentum and Strengthening the Portfolio -0.4 -0.3 -0.1 0.0 F24 Q3 F24 Q4 F25 Q1 F25 Q2 Dollar Share vs. LY 1 F25 Priority FLAT FLAT
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General Mills Second-quarter Fiscal 2025 North America Pet: Building Momentum and Strengthening the Portfolio 12 1 F25 Priority
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General Mills Second-quarter Fiscal 2025 % of Priority Categories Holding or Growing Dollar Share Continued Strong Competitiveness in North America Foodservice in Q2 13 Share Growth Across North America Foodservice Channels • Category-leading Renovations on Frozen Baked Goods • Driving K-12 Market Growth with Nutritional Leadership Source: Circana Supply Track, F25 Q2 through October 1 F25 Priority 49% 71% F25 Q1 F25 Q2
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General Mills Second-quarter Fiscal 2025 % of Priority Categories Holding or Growing Dollar Share Improved Competitiveness in International in Q2, though Continued Headwinds in China 14 1 F25 Priority • Net Sales Growth in Distributor Markets (accelerated vs. Q1) • Continued Positive Retail Sales Momentum in Europe & Australia • Share Growth in Häagen-Dazs Retail in Q2 • Double-digit Decline in Häagen-Dazs Shops Traffic in China Remains a Headwind Improving Competitiveness Across International Source: NIQ, F25 latest available 13 weeks through Q2, Brazil through October and remaining markets through November. Priority Categories defined as Global Platforms/Local Gems in Core Markets 32% 45% F25 Q1 F25 Q2
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General Mills Second-quarter Fiscal 2025 16.9% F19 F25 Outlook Adj. Operating Profit Margin % Higher 4% 3% 3% 6% 5% F10 - F21 Average F22 F23 F24 F25 Outlook Confidence in Delivering Elevated HMM Savings in F25 Maintaining Strong Adj. Op. Margin, Ahead of Pre-pandemic Create Fuel for Investment 2 F25 Priority General Mills HMM Cost Savings as % of COGS Long-term trend 15 (1) Non-GAAP measure. See appendix for reconciliation
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General Mills Second-quarter Fiscal 2025 Priorities Fiscal 2025 Plans CAPEX ~3.5% of Net Sales Dividend Growth 2% Dividend Increase as of Aug. 1, 2024 M&A Near-term Focus on Executing Previously Announced Projects Retain Flexibility for Bolt-on Acquisitions Share Repurchases ~3% Reduction to Average Diluted Shares Drive Strong Cash Generation 3 F25 Priority 16
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General Mills Second-quarter Fiscal 2025 Key Financial Metrics¹ Previous F25 Outlook Revised F25 Outlook Organic Net Sales Growth Flat to +1% Lower End of Range Adjusted Operating Profit Growth² -2% to Flat -4% to -2% Adjusted Diluted EPS Growth² -1 to +1% -3% to -1% Free Cash Flow Conversion 95%+ 95%+ Updated Fiscal 2025 Financial Outlook 17 (1) Non-GAAP measures (2) Growth rates in constant currency. Non-GAAP measures F25 Outlook does not include impact of North American Yogurt divestitures nor Whitebridge Pet Brands acquisition, which are expected to close in CY25 and F25 Q3, respectively
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General Mills Second-quarter Fiscal 2025 Kofi Bruce Chief Financial Officer 18
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General Mills Second-quarter Fiscal 2025 19 (1) Non-GAAP measures. See appendix for reconciliation (2) Growth rates in constant currency. Non-GAAP measures. See appendix for reconciliation Q2 Total General Mills $MM vs. LY Net Sales $5,240 +2% Organic Net Sales1 +1% Adjusted Operating Profit1 $1,064 +7%2 Adjusted Diluted EPS1 $1.40 +12%2 Second-quarter Fiscal 2025 Financial Results
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General Mills Second-quarter Fiscal 2025 Components of Second-quarter Net Sales Growth 20 Organic Volume Organic Price / Mix Total Net Sales as Reported Foreign Exchange Acquisitions & Divestitures -1 pt +2 pts Flat Flat +2% +1% Organic Net Sales1 (1) Non-GAAP measure.
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General Mills Second-quarter Fiscal 2025 Second-quarter Fiscal 2025 North America Retail 21 • Q2 organic net sales outpaced Nielsen-measured U.S. retail sales by ~2pts, due to an increase in retailer inventory (including later Thanksgiving timing) and growth in non-measured channels • Q2 net sales results driven by growth in U.S. Morning Foods and U.S. Snacks, partially offset by declines in U.S. Meals & Baking Solutions and Canada • Retail sales improved in 7 of top 10 U.S. categories from Q1 to Q2 • Q2 profit driven by HMM cost savings and favorable price/mix, offset by input cost inflation, higher other supply chain costs, and lower volume North America Retail Q2 Organic Net Sales¹ +1% Segment Op. Profit² Flat Source: NIQ xAOC (1) Non-GAAP measure. See appendix for reconciliation (2) Growth rate in constant currency. Non-GAAP measure. See appendix for reconciliation
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General Mills Second-quarter Fiscal 2025 North America Pet Q2 Organic Net Sales¹ +5% Segment Op. Profit² +36% Second-quarter Fiscal 2025 North America Pet 22 • Q2 organic net sales outpaced Nielsen-measured U.S. retail sales performance by ~4pts, reflecting a rebuild after retailer inventory reductions in Q2 of F23 and F24 • Q2 net sales results included +HSD% growth on dry food, +MSD% growth on wet food, and +LSD% growth on treats vs. LY • Q2 U.S. market share flat vs. LY; sequential share improvement in each of past five quarters • Q2 profit increase driven by HMM cost savings, higher volume, and lower other supply chain costs, partially offset by unfavorable price/mix and higher SG&A expenses including an increase in media investment Source: NIQ Pet Retail Plus, F25 Q2 (1) Non-GAAP measure. See appendix for reconciliation (2) Growth rate in constant currency. Non-GAAP measure. See appendix for reconciliation
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General Mills Second-quarter Fiscal 2025 Second-quarter Fiscal 2025 North America Foodservice 23 North America Foodservice Q2 Organic Net Sales¹ +8% Segment Op. Profit² +24% • Q2 organic net sales driven by higher pound volume and positive price/mix • Net sales driven by growth on breads, cereal, and frozen meals • Strong market share gains in K-12 schools, healthcare, and colleges and universities • Q2 profit increase driven by positive price/mix Source: Circana Supply Track, F25 YTD through October (1) Non-GAAP measure. See appendix for reconciliation (2) Growth rate in constant currency. Non-GAAP measure. See appendix for reconciliation
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General Mills Second-quarter Fiscal 2025 Second-quarter Fiscal 2025 International 24 International Q2 Organic Net Sales¹ -3% Segment Op. Profit² -45% • Q2 net sales decline driven by China and Brazil, partially offset by growth in Distributor markets and Europe & Australia • Share growth in Häagen-Dazs retail channels in Q2 • Q2 profit decline driven by unfavorable price/mix and higher SG&A expenses, partially offset by HMM cost savings Source: NIQ core International markets, F25 latest available 13 weeks through Q2 (1) Non-GAAP measure. See appendix for reconciliation (2) Growth rate in constant currency. Non-GAAP measure. See appendix for reconciliation
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General Mills Second-quarter Fiscal 2025 25 • Q2 CPW net sales growth driven by Latin America, partially offset by a decline in Europe • Q2 HDJ net sales growth driven by handheld formats, partially offset by lower contributions from cup format innovation • Q2 constant-currency after-tax earnings growth driven by lower input costs and favorable price/mix at CPW, partially offset by higher SG&A expenses and lower volume at CPW, and higher input costs at HDJ Net Sales² Q2 Cereal Partners Worldwide +2% Häagen-Dazs Japan +1% Second-quarter Fiscal 2025 Joint Ventures Q2 AFTER-TAX JV EARNINGS: $30MM, +23%¹ vs. LY (1) Growth rate in constant currency. Non-GAAP measure. See appendix for reconciliation (2) Net sales growth in constant currency
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General Mills Second-quarter Fiscal 2025 19.3% 20.3% Q2 F24 Q2 F25 Second-quarter Fiscal 2025 Margin Results 26 • Q2 Adj. Gross Margin increase driven by HMM cost savings, partially offset by input cost inflation and unfavorable price/mix • Q2 Adj. Operating Profit Margin increase driven by higher Adjusted Gross Margin, partially offset by higher SG&A expenses as a percentage of net sales 35.0% 36.3% Q2 F24 Q2 F25 Adjusted Gross Margin1 Adjusted Operating Profit Margin1 (% of Net Sales) (% of Net Sales) (1) Non-GAAP measures. See appendix for reconciliation
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General Mills Second-quarter Fiscal 2025 Second-quarter Fiscal 2025 Other Income Statement Items • Adjusted Unallocated Corporate Expenses Decreased $23MM vs. LY • Net Interest Expense Increased $7MM vs. LY • Adjusted Effective Tax Rate 20.1%, -70bps vs. LY¹ • Average Diluted Shares Outstanding -4% vs. LY 27 (1) Non-GAAP measure. See appendix for reconciliation
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General Mills Second-quarter Fiscal 2025 28 1H Total General Mills $MM vs. LY Net Sales $10,088 Flat Organic Net Sales1 Flat Adjusted Operating Profit1 $1,929 +2%2 Adjusted Diluted EPS1 $2.47 +6%2 First-half Fiscal 2025 Financial Results (1) Non-GAAP measures. See appendix for reconciliation (2) Growth rates in constant currency. Non-GAAP measures. See appendix for reconciliation
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General Mills Second-quarter Fiscal 2025 First-half Fiscal 2025 Balance Sheet and Cash Flow 29 Capital Investments $301MM Dividends Paid $676MM Net Share Repurchases $567MM Operating Cash Flow ($ in Millions) $1,496 $1,775 F24 F25
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General Mills Second-quarter Fiscal 2025 30 • Incremental Promotional Investment to Deliver Improved Volume and Market Share • Annual HMM Cost Savings Now 5% of COGS • Annual Input Cost Inflation Now 4% of COGS • Expected Headwinds to Adj. Operating Profit in 2H: • Reversal of Q2 Timing Benefits (3pts) • Increased Growth Investments (3pts) • Partial Incentive Reset (2pts) Updated Fiscal 2025 Key Assumptions
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General Mills Second-quarter Fiscal 2025 Key Financial Metrics¹ Previous F25 Outlook Revised F25 Outlook Organic Net Sales Growth Flat to +1% Lower End of Range Adjusted Operating Profit Growth² -2% to Flat -4% to -2% Adjusted Diluted EPS Growth² -1 to +1% -3% to -1% Free Cash Flow Conversion 95%+ 95%+ Updated Fiscal 2025 Financial Outlook 31 (1) Non-GAAP measures (2) Growth rates in constant currency. Non-GAAP measures F25 Outlook does not include impact of North American Yogurt divestitures nor Whitebridge Pet Brands acquisition, which are expected to close in CY25 and F25 Q3, respectively
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General Mills Second-quarter Fiscal 2025 • Drove Encouraging Improvement in Pound Volume and Market Share in First Half • Timing Benefits Amplified Growth in Q2; Expected to Reverse in Second Half • Revising F25 Guidance to Reflect Increased Investment to Drive Volume and Market Share Gains Today’s Key Messages 32
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General Mills Second-quarter Fiscal 2025 A Reminder on Non-GAAP Guidance Our fiscal 2025 outlook for organic net sales growth, constant-currency adjusted operating profit, adjusted diluted EPS, and free cash flow are non-GAAP financial measures that exclude, or have otherwise been adjusted for, items impacting comparability, including the effect of foreign currency exchange rate fluctuations, restructuring charges, acquisition transaction and integration costs, acquisitions, divestitures, and mark-to-market effects. We are not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because we are unable to predict with a reasonable degree of certainty the actual impact of changes in foreign currency exchange rates and commodity prices or the timing or impact of acquisitions, divestitures, and restructuring actions throughout fiscal 2025. The unavailable information could have a significant impact on our fiscal 2025 GAAP financial results. For fiscal 2025, we currently expect: foreign currency exchange rates (based on a blend of forward and forecasted rates and hedge positions) and acquisitions and divestitures completed prior to fiscal 2025 will have no material impact to net sales growth and restructuring charges to be immaterial. 33
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General Mills Second-quarter Fiscal 2025 Appendix: Second-quarter Fiscal 2025 North America Retail Operating Unit Results 34 Operating Unit Q2 U.S. Morning Foods +4% U.S. Snacks +1% U.S. Meals & Baking Solutions -1% Canada -4% Canada Constant-currency¹ -4% Net Sales % vs. LY (1) Net sales growth in constant currency. Non-GAAP measure. See appendix for reconciliation
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General Mills Second-quarter Fiscal 2025 35 Reconciliation of Second-quarter Fiscal 2025 Canada Operating Unit Constant-currency Net Sales Growth
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General Mills Second-quarter Fiscal 2025 36 Reconciliation of Second-quarter Fiscal 2025 Organic Net Sales Growth *Table may not foot due to rounding
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General Mills Second-quarter Fiscal 2025 *Table may not foot due to rounding **See reconciliation of tax rate items for tax impact of individual items 37 Reconciliation of First-half Fiscal 2025 Organic Net Sales Growth
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General Mills Second-quarter Fiscal 2025 38 ($ in Millions) Reconciliation of Second-quarter Fiscal 2025 Adjusted Operating Profit Constant-currency Compound Growth Rate *Table may not foot due to rounding
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General Mills Second-quarter Fiscal 2025 *Table may not foot due to rounding **See reconciliation of tax rate items for tax impact of individual items 39 Reconciliation of First-half Fiscal 2025 Adjusted Operating Profit Constant-currency Growth Rate (Fiscal Years, $ in Millions)
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General Mills Second-quarter Fiscal 2025 *Table may not foot due to rounding **See reconciliation of tax rate items for tax impact of individual items 40 Reconciliation of Second-quarter Fiscal 2025 Adjusted Diluted EPS and Related Constant-currency Growth Rates (Fiscal Years)
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General Mills Second-quarter Fiscal 2025 *Table may not foot due to rounding **See reconciliation of tax rate items for tax impact of individual items 41 Reconciliation of First-half Fiscal 2025 Adjusted Diluted EPS and Related Constant-currency Growth Rates (Fiscal Years)
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General Mills Second-quarter Fiscal 2025 42 Reconciliation of Fiscal 2019 Adjusted Operating Profit Margin F19 Percentage of Net Sales Operating Profit as Reported 14.9% Mark-to-mark effects 0.2% Restructuring charges 0.5% Transaction and aquistion integration costs 0.1% Investment activity, net -0.1% Divestiture loss 0.2% Asset Impairment 1.2% Legal recovery -0.1% Adjusted Operating Profit Margin 16.9%
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General Mills Second-quarter Fiscal 2025 *Table may not foot due to rounding 43 Reconciliation of Second-quarter Fiscal 2025 Constant-currency Segment Operating Profit Growth North America Retail Flat Flat Flat International (31) % 14 pts (45) % North America Pet 36 % Flat 36 % North America Foodservice 24 % Flat 24 % F25 Q2 Percentage Change in Operating Profit as Reported Impact of Foreign Currency E xchange Percentage Change in Operating Profit on Constant-Currency Basis
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General Mills Second-quarter Fiscal 2025 44 *Table may not foot due to rounding Second-quarter Fiscal 2025 Constant-currency After-tax Earnings from Joint Ventures Growth Rates
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General Mills Second-quarter Fiscal 2025 45 Reconciliation of Second-quarter Fiscal 2025 Adjusted Gross Margin Comparisons as a % of Net Sales Percent of Net Sales Percent of Net Sales Gross margin as reported (a) 36.9 % 34.4 % Restructuring charges - % 0.2 % Mark-to-market effects (0.6) % 0.5 % Project-related costs - % - % Adjusted gross margin 36.3 % 35.0 % Q2 F25 F24 *Table may not foot due to rounding
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General Mills Second-quarter Fiscal 2025 46 *Table may not foot due to rounding ($ in Millions) Reconciliation of Second-quarter Fiscal 2025 Adjusted Operating Profit Margin
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General Mills Second-quarter Fiscal 2025 47 ($ in Millions except Per Share Data) *Table may not foot due to rounding a) Earnings before income taxes and after-tax earnings from joint ventures Reconciliation of Second-quarter Fiscal 2025 Adjusted Tax Rate
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General Mills Second-quarter Fiscal 2025 48 Reconciliation of First-half Fiscal 2025 Adjusted Tax Rate *Table may not foot due to rounding a) Earnings before income taxes and after-tax earnings from joint ventures ($ in Millions except Per Share Data) 1H F25 F24 In Millions (Except Per Share Data) Pretax Earnings (a) Income Taxes Pretax Earnings (a) Income Taxes As reported $ 1,688.9 $ 352.2 $ 1,544.1 $ 309.2 Transaction costs 8.9 2.0 0.6 - Restructuring charges 4.2 1.0 24.6 9.2 Acquisition integration costs 3.9 0.9 0.2 0.1 Investment activity, net 3.2 0.7 22.5 5.2 Mark-to-market effects (0.6) (0.1) (19.8) (4.6) Project-related costs 0.2 0.1 1.1 0.4 Goodwill impairment - - 117.1 34.7 Product recall - - 0.4 0.1 As adjusted $ 1,708.8 $ 356.9 $ 1,690.8 $ 354.2 Effective tax rate: As reported 20.9% 20.0% As adjusted 20.9% 21.0% Sum of adjustments to income taxes $ 4.6 $ 45.1 Average number of common shares - diluted EPS 562.2 587.4 Impact of income tax adjustments on adjusted diluted EPS $ (0.01) $ (0.08)