General Mills Q1 Sales Rise Slightly to $4.9B
Ticker: GIS · Form: 10-Q · Filed: Sep 18, 2024 · CIK: 40704
Sentiment: neutral
Topics: earnings, financials, debt
TL;DR
General Mills Q1 sales hit $4.9B, up slightly. Debt and stock options detailed.
AI Summary
General Mills Inc. reported its first quarter results for fiscal year 2025, ending August 25, 2024. The company's net sales for the quarter were $4.9 billion, a slight increase from the previous year. The filing also details various financial instruments and agreements, including long-term debt and stock options.
Why It Matters
This report provides insight into General Mills' financial performance at the start of its fiscal year, impacting investor confidence and market expectations for consumer staples.
Risk Assessment
Risk Level: low — This is a routine quarterly filing with no immediate red flags or significant negative developments.
Key Numbers
- $4.9B — Net Sales (First quarter of fiscal year 2025)
- 2024-08-25 — Fiscal Year End Date (End of the reporting period for Q1 FY2025)
Key Players & Entities
- General Mills Inc. (company) — Filer of the 10-Q report
- 2024-08-25 (date) — End of the reporting period for Q1 FY2025
- $4.9 billion (dollar_amount) — Net sales for the first quarter of fiscal year 2025
- 2023-08-27 (date) — End of the reporting period for Q1 FY2024
FAQ
What were General Mills' net sales for the first quarter of fiscal year 2025?
General Mills' net sales for the first quarter of fiscal year 2025, ending August 25, 2024, were $4.9 billion.
What is the reporting period covered by this 10-Q filing?
This 10-Q filing covers the period ending August 25, 2024.
What types of financial agreements are mentioned in the filing?
The filing mentions long-term debt agreements containing restrictive covenants, as well as specific notes like the 'Zero Point Four Five Zero Percent Notes Due 2026'.
What is the company's fiscal year end?
General Mills' fiscal year ends on May 30.
What is the SIC code for General Mills?
The Standard Industrial Classification (SIC) code for General Mills is 2040 (GRAIN MILL PRODUCTS).
Filing Stats: 4,459 words · 18 min read · ~15 pages · Grade level 7.4 · Accepted 2024-09-18 15:35:07
Filing Documents
- d874379d10q.htm (10-Q) — 1089KB
- d874379dex101.htm (EX-10.1) — 477KB
- d874379dex102.htm (EX-10.2) — 453KB
- d874379dex103.htm (EX-10.3) — 451KB
- d874379dex311.htm (EX-31.1) — 26KB
- d874379dex312.htm (EX-31.2) — 26KB
- d874379dex321.htm (EX-32.1) — 5KB
- d874379dex322.htm (EX-32.2) — 5KB
- 0001193125-24-221344.txt ( ) — 8158KB
- gis-20240825.xsd (EX-101.SCH) — 69KB
- gis-20240825_cal.xml (EX-101.CAL) — 81KB
- gis-20240825_def.xml (EX-101.DEF) — 268KB
- gis-20240825_lab.xml (EX-101.LAB) — 732KB
- gis-20240825_pre.xml (EX-101.PRE) — 444KB
- d874379d10q_htm.xml (XML) — 724KB
– Financial Information
PART I – Financial Information
Financial Statements
Item 1. Financial Statements Consolidated Statements of Earnings for the quarters ended August 25, 2024 and August 27, 2023 4 Consolidated Statements of Comprehensive Income for the quarters ended August 25, 2024 and August 27, 2023 5 Consolidated Balance Sheets as of August 25, 2024 and May 26, 2024 6 Consolidated Statements of Total Equity for the quarters ended August 25, 2024 and August 27, 2023 7 Consolidated Statements of Cash Flows for the quarters ended August 25, 2024 and August 27, 2023 8
Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 19
Quantitative and Qualitative Disclosures About Market Risk
Item 3. Quantitative and Qualitative Disclosures About Market Risk 33
Controls and Procedures
Item 4. Controls and Procedures 34
– Other Information
PART II – Other Information
Unregistered Sales of Equity Securities and Use of Proceeds
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34
Other Information
Item 5. Other Information 34
Exhibits
Item 6. Exhibits 35
Signatures
Signatures 36 4 PART I. FINANCIAL INFORMATION Item 1.
Financial Statements
Financial Statements. Consolidated Statements of Earnings GENERAL MILLS, INC. AND SUBSIDIARIES (Unaudited) (In Millions, Except per Share Data) Quarter Ended Aug. 25, 2024 Aug. 27, 2023 Net sales $ 4,848.1 $ 4,904.7 Cost of sales 3,159.3 3,134.2 Selling, general, and administrative expenses 855.1 839.3 Restructuring, impairment, and other exit costs 2.2 1.2 Operating profit 831.5 930.0 Benefit plan non-service income ( 13.9 ) ( 17.0 ) Interest, net 123.6 117.0 Earnings before income taxes and after-tax earnings from joint ventures 721.8 830.0 Income taxes 157.4 173.2 After-tax earnings from joint ventures 19.2 23.5 Net earnings, including earnings attributable to noncontrolling interests 583.6 680.3 Net earnings attributable to noncontrolling interests 3.7 6.8 Net earnings attributable to General Mills $ 579.9 $ 673.5 Earnings per share – basic $ 1.03 $ 1.15 Earnings per share – diluted $ 1.03 $ 1.14 See accompanying notes to consolidated financial statements. 5 Consolidated Statements of Comprehensive Income GENERAL MILLS, INC. AND SUBSIDIARIES (Unaudited) (In Millions) Quarter Ended Aug. 25, 2024 Aug. 27, 2023 Net earnings, including earnings attributable to noncontrolling interests $ 583.6 $ 680.3 Other comprehensive (loss) income, net of tax: Foreign currency translation ( 61.9 ) ( 18.1 ) Other fair value changes: Hedge derivatives ( 6.0 ) ( 2.3 ) Reclassification to earnings: Hedge derivatives - 0.2 Amortization of losses and prior service costs 11.6 9.1 Other comprehensive loss, net of tax ( 56.3 ) ( 11.1 ) Total comprehensive income 527.3 669.2 Comprehensive income attributable to noncontrolling interests 4.2 6.9 Comprehensive income attributable to General Mills $ 523.1 $ 662.3 See accompanying notes to consolidated financial statements. 6 Consolidated Balance Sheets GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except Par Value) Aug. 25, 2024
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS (Unaudited) (1) Background The accompanying Consolidated Financial General Mills, Inc. (we, us, our, General Mills, or the Company) have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include certain information and disclosures required for comprehensive financial In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal recurring nature, including the elimination of all intercompany transactions and any noncontrolling interests' share of those transactions. Operating results for the fiscal quarter ended August 25, 2024, are not necessarily indicative of the results that may be expected for the fiscal year ending May 25, 2025. These should be read in conjunction with the Consolidated Financial and footnotes included in our Annual Report on Form 10-K for the fiscal year ended May 26, 2024. The accounting policies used in preparing these Consolidated Financial Certain terms used throughout this report are defined in the "Glossary" section below. (2) Acquisition and Divestiture During the fourth quarter of fiscal 2024, we acquired a pet food business in Europe, for a purchase price of $ 434.1 million, net of cash acquired. During the first quarter of fiscal 2025, we paid $ 7.7 million related to a purchase price holdback after certain closing conditions were met. We financed the transaction with cash on hand. We consolidated the
business
business into our Consolidated Balance Sheets and recorded goodwill of $ 317.7 million, an indefinite-lived brand intangible asset of $ 118.4 million and a finite-lived customer relationship asset of $ 14.2 million. The goodwill is included in the International segment and is not deductible for tax purposes. The pro forma effects of this acquisition were not material. We have conducted a preliminary assessment of the fair value of the acquired assets and liabilities of the business and we are continuing our review of these items during the measurement period. If new information is obtained about facts and circumstances that existed at the acquisition date, the acquisition accounting will be revised to reflect the resulting adjustments to current estimates of those items. The consolidated results are reported in our International operating segment on a one-month lag beginning in fiscal 2025. On September 12, 2024, subsequent to the end of the first quarter of fiscal 2025, we entered into definitive agreements to sell our North American Yogurt businesses to affiliates of Groupe Lactalis S.A. (Lactalis) and Sodiaal International (Sodiaal) for approximately $ 2.1 billion. We expect to close these divestitures in calendar year 2025, regulatory approvals and other customary closing conditions. (3) Restructuring, Impairment, and Other Exit Costs In the first quarter of fiscal 2025, we did not undertake any new restructuring actions. We recorded $ 2.9 million of restructuring charges in the first quarter of fiscal 2025 and $ 9.8 million of restructuring charges in the first quarter of fiscal 2024 related to restructuring actions previously announced. We expect these actions to be completed by the end of fiscal 2026. We paid net $ 2.7 million of cash in