General Mills (GIS) Q4 2024 (Q&A) earnings summary

Executive summary

• Fiscal 2024 results met or exceeded updated guidance, with net sales down 1% to $19.9B and moderation from prior double-digit growth.

• Operating profit was flat at $3.4B; adjusted operating profit rose 4% in constant currency.

• Diluted EPS was $4.31, flat year-over-year; adjusted diluted EPS increased 6% in constant currency.

• Top priority for fiscal 2025 is to accelerate organic net sales growth and improve market share through increased brand investment and cost savings.

• Board declared a 2% dividend increase, continuing 125 years of uninterrupted dividends.

Financial highlights

• Fiscal 2024 net sales were $19,857M, down 1% year-over-year; organic net sales also declined 1%.

• Adjusted operating profit grew 4% to $3,603M; adjusted diluted EPS rose 6% to $4.52, both in constant currency.

• Full-year gross margin rose 230 bps to 34.9%; adjusted gross margin up 60 bps to 34.8%.

• Operating cash flow reached $3,303M, with free cash flow conversion at 96%.

• Dividends paid increased 6% to $1.4B; $2.0B in share repurchases, reducing average diluted shares by 4%.

Outlook and guidance

• Fiscal 2025 organic net sales expected to be flat to up 1%.

• Adjusted operating profit projected between down 2% and flat in constant currency, including a 2-point headwind from incentive compensation reset.

• Adjusted diluted EPS expected between down 1% and up 1% in constant currency.

• Q1 fiscal 2025 results expected to be below full-year targets due to increased brand investment and tough comparisons.

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