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In the second quarter of fiscal 2025, General Mills, Inc. (NYSE: GIS) reported notable growth, reflecting a solid performance across its segments. Net sales increased by 2% to $5.2 billion, with organic net sales rising by 1%.

The company achieved an impressive 33% increase in operating profit, amounting to $1.1 billion, and a 39% rise in diluted earnings per share (EPS) to $1.42. Adjusted diluted EPS also saw a 12% increase in constant currency terms, reaching $1.40. These results were bolstered by favorable timing benefits, which are anticipated to reverse in the latter half of the fiscal year.

The North America Pet segment was a standout performer, with net sales climbing 5% to $596 million, driven by increased pound volume. The North America Foodservice segment also reported significant growth, with net sales up 8% to $630 million.

Meanwhile, the International segment experienced a modest 1% increase in net sales, aided by the acquisition of Edgard & Cooper. The North America Retail segment remained flat, totaling $3.3 billion in net sales, with gains in certain categories offset by declines in others.
 

General Mills Exceed Market Expectations for Q2 FY’25

General Mills exceeded market expectations for the quarter, delivering an EPS of $1.42 compared to the anticipated $1.22. The company’s revenue of $5.2 billion also surpassed the expected $5.14 billion.

This outperformance was largely driven by strategic investments and effective cost management, as reflected in the 250 basis point increase in gross margin to 36.9%. The company’s Holistic Margin Management initiatives and favorable mark-to-market effects contributed significantly to this improvement.

The company’s robust performance was not without its challenges. Input cost inflation and unfavorable net price realization and mix partially offset the gains. Despite these hurdles, General Mills managed to maintain a strong operating profit margin of 20.6%, up 480 basis points from the previous year.
 

General Mills Expects Organic Net sales to Range Between Flat and Up 1% for Full Fiscal Year 2025

General Mills has updated its full-year fiscal 2025 outlook to account for increased investments aimed at enhancing volume and market share trends.

The company now expects organic net sales to range between flat and up 1%, targeting the lower end of this range due to heightened promotional investments. Adjusted operating profit is projected to decline by 2% to 4% in constant currency, reflecting these additional investments.

The company anticipates several headwinds in the second half of the fiscal year, including a reversal of timing-related benefits and incremental growth investments.

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