UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
FOR THE QUARTERLY PERIOD ENDED
FOR THE TRANSITION PERIOD FROM TO
Commission file number:
________________
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)
,
(Address of principal executive offices)
(Zip Code)
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange
on which registered
________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
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Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit such files).
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller
reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller
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Accelerated filer
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Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
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Number of shares of Common Stock outstanding as of September 11, 2024:
treasury).
3
General Mills, Inc.
Table of Contents
Page
4
5
6
7
8
19
33
34
34
34
35
36
4
PART I. FINANCIAL INFORMATION
Item 1. 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
$
$
Cost of sales
Selling, general, and administrative expenses
Restructuring, impairment, and other exit costs
Operating profit
Benefit plan non-service income
(13.9 )
(17.0 )
Interest, net
Earnings before income taxes and after-tax earnings from joint ventures
Income taxes
After-tax earnings from joint ventures
Net earnings, including earnings attributable to noncontrolling interests
Net earnings attributable to noncontrolling interests
Net earnings attributable to General Mills
$
$
Earnings per share – basic
$
$
Earnings per share – diluted
$
$
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
$
$
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
Amortization of losses and prior service costs
Other comprehensive loss, net of tax
(56.3 )
(11.1 )
Total comprehensive income
Comprehensive income attributable to noncontrolling
Comprehensive income attributable to General Mills
$
$
See accompanying notes to consolidated financial statements.
6
Consolidated Balance Sheets
GENERAL MILLS, INC. AND SUBSIDIARIES
(In Millions, Except Par Value)
Aug. 25, 2024
May 26, 2024
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
$
Receivables
Inventories
Prepaid expenses and other current assets
Total current assets
Land, buildings, and equipment
Goodwill
Other intangible assets
Other assets
Total assets
$
$
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
$
Current portion of long-term debt
Notes payable
Other current liabilities
Total current liabilities
Long-term debt
Deferred income taxes
Other liabilities
Total liabilities
Stockholders’ equity:
Common stock,
Additional paid-in capital
Retained earnings
Common stock in treasury, at cost, shares of
(10,601.9 )
(10,357.9 )
Accumulated other comprehensive loss
(2,576.5 )
(2,519.7 )
Total stockholders’ equity
Noncontrolling interests
Total equity
Total liabilities and equity
$
$
See accompanying notes to consolidated financial statements.
7
Consolidated Statements of Total Equity
GENERAL MILLS, INC. AND SUBSIDIARIES
(Unaudited) (In Millions, Except per Share Data)
Quarter Ended
Aug. 25, 2024
Aug. 27, 2023
Shares
Amount
Shares
Amount
Total equity, beginning balance
$
$
Common stock,
Additional paid-in capital:
Beginning balance
Stock compensation plans
(5.2 )
Unearned compensation related to stock unit awards
(77.1 )
(79.4 )
Earned compensation
Ending balance
Retained earnings:
Beginning balance
Net earnings attributable to General Mills
Cash dividends declared ($
(337.8 )
(348.5 )
Ending balance
Common stock in treasury:
Beginning balance
(195.5 )
(10,357.9 )
(168.0 )
(8,410.0 )
Shares purchased, including excise tax of $
(4.5 )
(302.2 )
(6.4 )
(504.7 )
Stock compensation plans
Ending balance
(198.8 )
(10,601.9 )
(173.4 )
(8,874.3 )
Accumulated other comprehensive loss:
Beginning balance
(2,519.7 )
(2,276.9 )
Comprehensive loss
(56.8 )
(11.2 )
Ending balance
(2,576.5 )
(2,288.1 )
Noncontrolling interests:
Beginning balance
Comprehensive income
Distributions to noncontrolling interest holders
(5.0 )
(4.3 )
Ending balance
Total equity, ending balance
$
$
See accompanying notes to consolidated financial statements.
8
Consolidated Statements of Cash Flows
GENERAL MILLS, INC. AND SUBSIDIARIES
(Unaudited) (In Millions)
Quarter Ended
Aug. 25, 2024
Aug. 27, 2023
Cash Flows - Operating Activities
Net earnings, including earnings attributable to noncontrolling interests
$
$
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
After-tax earnings from joint ventures
(19.2 )
(23.5 )
Distributions of earnings from joint ventures
Stock-based compensation
Deferred income taxes
(14.5 )
Pension and other postretirement benefit plan contributions
(7.5 )
(7.4 )
Pension and other postretirement benefit plan costs
(3.2 )
(5.3 )
Restructuring, impairment, and other exit costs
Changes in current assets and liabilities, excluding the effects of
(107.6 )
(457.4 )
Other, net
(21.3 )
Net cash provided by operating activities
Cash Flows - Investing Activities
Purchases of land, buildings, and equipment
(140.3 )
(141.7 )
Acquisition, net of cash acquired
(7.7 )
Proceeds from disposal of land, buildings, and equipment
Other, net
(0.6 )
Net cash used by investing activities
(148.0 )
(135.5 )
Cash Flows - Financing Activities
Change in notes payable
Proceeds from common stock issued on exercised options
Purchases of common stock for treasury
(300.0 )
(500.5 )
Dividends paid
(337.8 )
(348.5 )
Distributions to noncontrolling interest holders
(5.0 )
(4.3 )
Other, net
(34.0 )
(37.2 )
Net cash used by financing activities
(429.4 )
(334.2 )
Effect of exchange rate changes on cash and cash equivalents
(3.0 )
Increase (decrease) in cash and cash equivalents
(94.6 )
Cash and cash equivalents - beginning of year
Cash and cash equivalents - end of period
$
$
Cash Flow from changes in current assets and liabilities, excluding the effects of
Receivables
$
(145.6 )
$
(104.4 )
Inventories
(95.7 )
(54.3 )
Prepaid expenses and other current assets
Accounts payable
(76.4 )
(443.8 )
Other current liabilities
Changes in current assets and liabilities
$
(107.6 )
$
(457.4 )
See accompanying notes to consolidated financial statements.
9
GENERAL MILLS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) Background
The accompanying Consolidated Financial Statements of 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 statements. 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 statements should be read in conjunction with the Consolidated Financial Statements 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
Statements are the same as those described in Note 2 to the Consolidated Financial Statements in that Form 10-K.
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 $
acquired. During the first quarter of fiscal 2025, we paid $
conditions were met.
We
financed the transaction with cash on hand. We consolidated the business into our Consolidated Balance
Sheets and recorded goodwill of $
customer relationship asset of $
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 $
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 $
charges in the first quarter of fiscal 2025 and $
restructuring actions previously announced. We expect these actions to be completed by the end of fiscal 2026.
We paid net $
the same period of fiscal 2024.
Restructuring and impairment charges and project-related costs are recorded in our Consolidated Statements of Earnings as follows:
Quarter Ended
In Millions
Aug. 25, 2024
Aug. 27, 2023
Restructuring, impairment, and other exit costs
$
$
Cost of sales
Total restructuring charges
$
$
Project-related costs classified in cost of sales
$
$
10
(4) Goodwill and Other Intangible Assets
The components of goodwill and other intangible assets are as follows:
In Millions
Aug. 25, 2024
May 26, 2024
Goodwill
$
$
Other intangible assets:
Intangible assets not subject to amortization:
Brands and other indefinite-lived intangibles
Intangible assets subject to amortization:
Customer relationships and other finite-lived intangibles
Less accumulated amortization
(156.0 )
(150.9 )
Intangible assets subject to amortization, net
Other intangible assets
Total
$
$
Based on the carrying value of finite-lived intangible assets as of August 25, 2024, annual amortization expense for each of the next
five fiscal years is estimated to be approximately $
The changes in the carrying amount of goodwill during the first quarter of fiscal 2025 were as follows:
In Millions
North
America
Retail
North
America
Pet
North
America
Foodservice
International
(a)
Corporate
and Joint
Ventures
Total
Balance as of May 26, 2024
$
$
$
$
$
$
Other activity, primarily
Balance as of Aug. 25, 2024
$
$
$
$
$
$
(a)
The carrying amounts of goodwill within the International segment as of May 26, 2024, and August 25, 2024, were net of
accumulated impairment losses of $
The changes in the carrying amount of other intangible assets during the first quarter of fiscal 2025 were as follows:
In Millions
Total
Balance as of May 26, 2024
$
Foreign currency translation, net of amortization
Balance as of Aug. 25, 2024
$
Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of
fiscal 2024. As a result of lower future profitability projections for our Latin America reporting unit, we determined that the fair value
of the reporting unit was less than its book value and recorded a $
during the fourth quarter of fiscal 2024, we executed our fiscal 2025 planning process and preliminary long-range planning process,
which resulted in lower future sales and profitability projections for the businesses supporting our
Top Chews
,
True Chews
, and
EPIC
brand intangible assets. As a result of this triggering event, we performed an interim impairment assessment of these assets as of May
26, 2024, and determined that the fair value of these brand intangible assets no longer exceeded the carrying values of the respective
assets, resulting in $
other exit costs in our Consolidated Statements of Earnings. Our estimates of the fair values were determined based on a discounted
cash flow model using inputs which included our long-range cash flow projections for the businesses, royalty rates, weighted -average
cost of capital rates, and tax rates. These fair values are Level 3 assets in the fair value hierarchy.
All other intangible asset fair values were substantially in excess of the carrying values, except for the
Uncle Toby’s
asset. In addition, while having significant coverage as of our fiscal 2024 assessment date, the
Progresso
,
Nudges
, and
True Chews
brand intangible assets had risk of decreasing coverage. We will continue to monitor these businesses for potential impairment.
11
(5) Inventories
The components of inventories were as follows:
In Millions
Aug. 25, 2024
May 26, 2024
Finished goods
$
$
Raw materials and packaging
Grain
Excess of FIFO over LIFO cost
(546.4 )
(541.1 )
Total
$
$
(6) Risk Management Activities
Many commodities we use in the production and distribution of our products are exposed to market price risks. We utilize derivatives
to manage price risk for our principal ingredients and energy costs, including grains (oats, wheat, and corn), oils (principally soybean),
dairy products, natural gas, and diesel fuel. Our primary objective when entering into these derivative contracts is to achieve certainty
with regard to the future price of commodities purchased for use in our supply chain. We manage our exposures through a
combination of purchase orders, long-term contracts with suppliers, exchange-traded futures and options, and over-the-counter options
and swaps. We offset our exposures based on current and projected market conditions and generally seek to acquire the inputs at as
close as possible to or below our planned cost.
We use derivatives to manage our exposure to changes in commodity prices. We do not perform the assessments required to achieve
hedge accounting for commodity derivative positions. Accordingly, the changes in the values of these derivatives are recorded
currently in cost of sales in our Consolidated Statements of Earnings.
Although we do not meet the criteria for cash flow hedge accounting, we believe that these instruments are effective in achieving our
objective of providing certainty in the future price of commodities purchased for use in our supply chain. Accordingly, for purposes of
measuring segment operating performance, these gains and losses are reported in unallocated corporate items outside of segment
operating results until such time that the exposure we are managing affects earnings. At that time, we reclassify the gain or loss from
unallocated corporate items to segment operating profit, allowing our operating segments to realize the economic effects of the
derivative without experiencing any resulting mark-to-market volatility, which remains in unallocated corporate items.
Unallocated corporate items for the quarters ended August 25, 2024, and August 27, 2023, included:
Quarter Ended
In Millions
Aug. 25, 2024
Aug. 27, 2023
Net (loss) gain on mark-to-market valuation of certain
$
(37.7 )
$
Net loss on commodity positions reclassified from
Net mark-to-market revaluation of certain grain inventories
(8.3 )
Net mark-to-market valuation of certain commodity
$
(28.8 )
$
As of August 25, 2024, the net notional value of commodity derivatives was $
agricultural inputs and $
next
We also have net investments in foreign subsidiaries that are denominated in euros. As of August 25, 2024, we hedged a portion of
these investments with €
The fair values of the derivative positions used in our risk management activities and other assets recorded at fair value were not
material as of August 25, 2024, and were Level 1 or Level 2 assets and liabilities in the fair value hierarchy. We did not significantly
change our valuation techniques from prior periods.
12
We offer certain suppliers access to third-party services that allow them to view our scheduled payments online. The third-party
services also allow suppliers to finance advances on our scheduled payments at the sole discretion of the supplier and the third party.
We have no economic interest in these financing arrangements and no direct relationship with the suppliers, the third parties, or any
financial institutions concerning these services, including not providing any form of guarantee and not pledging assets as security to
the third parties or financial institutions. All of our accounts payable remain as obligations to our suppliers as stated in our supplier
agreements. As of August 25, 2024, $
party services. As of May 26, 2024, $
party services.
(7) Debt
The components of notes payable were as follows:
Aug. 25, 2024
May 26, 2024
In Millions
Notes Payable
Weighted-
Average
Interest Rate
Notes Payable
Weighted-
Average
Interest Rate
U.S. commercial paper
$
%
$
%
Financial institutions
Total
$
%
$
%
To ensure availability of funds, we maintain bank credit lines and have commercial paper programs available to us in the United States
and Europe.
The following table details the fee-paid committed and uncommitted credit lines we had available as of August 25, 2024:
In Billions
Facility
Amount
Borrowed
Amount
Committed credit facility expiring April 2026
$
$
Uncommitted credit facilities
Total committed and uncommitted credit facilities
$
$
The credit facilities contain covenants, including a requirement to maintain a fixed charge coverage ratio of at least
Long-Term Debt
The fair values and carrying amounts of long-term debt, including the current portion, were $
respectively, as of August 25, 2024. The fair value of long-term debt was estimated using market quotations and discounted cash
flows based on our current incremental borrowing rates for similar types of instruments. Long -term debt is a Level 2 liability in the
fair value hierarchy.
In the fourth quarter of fiscal 2024, we issued €
. We used the net
proceeds for general corporate purposes.
In the fourth quarter of fiscal 2024, we issued €
. We used the net
proceeds for general corporate purposes.
In the third quarter of fiscal 2024, we issued $
. We used the net
proceeds to repay $
.
In the second quarter of fiscal 2024, we issued €
. We used the net proceeds
to repay €
.
In the second quarter of fiscal 2024, we issued $
. We used the net
proceeds to repay $
, and for general corporate purposes.
In the first quarter of fiscal 2024, we issued €
. We used the net proceeds to
repay €
.
13
Certain of our long-term debt agreements contain restrictive covenants.
(8) Noncontrolling Interests
The third-party holder of the General Mills Cereals, LLC (GMC) Class A Interests receives quarterly preferred distributions from
available net income based on the application of a floating preferred return rate to the holder’s capital account balance established in
the most recent mark-to-market valuation (currently $
Class A Interests was reset to the sum of the
(9) Stockholders’ Equity
The following tables provide details of total comprehensive income:
Quarter Ended
Quarter Ended
Aug. 25, 2024
Aug. 27, 2023
General Mills
Noncontrolling
Interests
General Mills
Noncontrolling
Interests
In Millions
Pretax
Tax
Net
Net
Pretax
Tax
Net
Net
Net earnings, including earnings
$
$
$
$
Other comprehensive (loss) income:
Foreign currency translation
$
(93.9 )
$
(62.4 )
$
(22.0 )
$
(18.2 )
Other fair value changes:
Hedge derivatives
(7.5 )
(6.0 )
(2.7 )
(2.3 )
Reclassification to earnings:
Hedge derivatives (a)
(0.4 )
(1.3 )
Amortization of losses and
(2.9 )
(2.4 )
Other comprehensive (loss) income
$
(87.3 )
$
(56.8 )
$
(14.5 )
$
(11.2 )
Total comprehensive income
$
$
$
$
(a) Loss reclassified from AOCI into earnings is reported in interest, net for interest rate swaps and in cost of sales and SG&A expenses for foreign exchange contracts.
(b) Loss reclassified from AOCI into earnings is reported in benefit plan non-service income.
Accumulated other comprehensive loss balances, net of tax effects, were as follows:
In Millions
Aug. 25, 2024
May 26, 2024
Foreign currency translation adjustments
$
(857.7 )
$
(795.3 )
Unrealized (loss) gain from hedge derivatives
(5.8 )
Pension, other postretirement, and postemployment benefits:
Net actuarial loss
(1,790.8 )
(1,806.3 )
Prior service credits
Accumulated other comprehensive loss
$
(2,576.5 )
$
(2,519.7 )
(10) Stock Plans
We have various stock-based compensation programs under which awards, including stock options, restricted stock, restricted stock
units, and performance awards, may be granted to employees and non-employee directors. These programs and related accounting are
described in Note 12 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended
May 26, 2024.
Compensation expense related to stock-based payments recognized in the Consolidated Statements of Earnings was as follows:
Quarter Ended
In Millions
Aug. 25, 2024
Aug. 27, 2023
Compensation expense related to stock-based payments
$
$
14
Windfall tax benefits from stock-based payments in income tax expense in our Consolidated Statements of Earnings were as follows:
Quarter Ended
In Millions
Aug. 25, 2024
Aug. 27, 2023
Windfall tax benefits from stock-based payments
$
$
As of August 25, 2024, unrecognized compensation expense related to non-vested stock options, restricted stock units, and
performance share units was $
Net cash proceeds from the exercise of stock options less shares used for withholding taxes and the intrinsic value of options exercised
were as follows:
Quarter Ended
In Millions
Aug. 25, 2024
Aug. 27, 2023
Net cash proceeds
$
$
Intrinsic value of options exercised
$
$
The estimated fair values of stock options granted and the assumptions used for the Black-Scholes option-pricing model were as
follows:
Quarter Ended
Aug. 25, 2024
Aug. 27, 2023
Estimated fair values of stock options granted
$
$
Assumptions:
Risk-free interest rate
%
%
Expected term
years
years
Expected volatility
%
%
Dividend yield
%
%
The total grant date fair value of restricted stock unit awards that vested during the period was as follows:
Quarter Ended
In Millions
Aug. 25, 2024
Aug. 27, 2023
Total grant date fair value
$
$
15
(11) Earnings Per Share
Basic and diluted earnings per share (EPS) were calculated using the following:
Quarter Ended
In Millions, Except per Share Data
Aug. 25, 2024
Aug. 27, 2023
Net earnings attributable to General Mills
$
$
Average number of common shares – basic EPS
Incremental share effect from: (a)
Stock options
Restricted stock units and performance share units
Average number of common shares – diluted EPS
Earnings per share – basic
$
$
Earnings per share – diluted
$
$
(a) Incremental shares from stock options, restricted stock units, and performance share units are computed by the treasury stock
method
. Stock options, restricted stock units, and performance share units excluded from our computation of diluted EPS because
they were not dilutive were as follows
:
Quarter Ended
In Millions
Aug. 25, 2024
Aug. 27, 2023
Anti-dilutive stock options, restricted stock units, and
(12) Share Repurchases
Share repurchases were as follows:
Quarter Ended
In Millions
Aug. 25, 2024
Aug. 27, 2023
Shares of common stock
Aggregate purchase price
$
$
(13) Statements of Cash Flows
Our Consolidated Statements of Cash Flows include the following:
Quarter Ended
In Millions
Aug. 25, 2024
Aug. 27, 2023
Net cash interest payments
$
$
Net income tax payments
$
$
16
(14) Retirement and Postemployment Benefits
Components of net periodic benefit expense (income) are as follows:
Defined Benefit
Pension Plans
Other Postretirement
Benefit Plans
Postemployment
Benefit Plans
Quarter Ended
Quarter Ended
Quarter Ended
In Millions
Aug. 25,
2024
Aug. 27,
2023
Aug. 25,
2024
Aug. 27,
2023
Aug. 25,
2024
Aug. 27,
2023
Service cost
$
$
$
$
$
$
Interest cost
Expected return on plan assets
(105.0 )
(102.9 )
(9.0 )
(8.7 )
Amortization of losses (gains)
(5.2 )
(5.1 )
Amortization of prior service costs (credits)
(5.5 )
(5.4 )
(0.3 )
Other adjustments
Net expense (income)
$
$
$
(13.3 )
$
(12.7 )
$
$
(15) Income Taxes
During the second quarter of fiscal 2024, we received a notice of proposed adjustment from the Internal Revenue Service associated
with a capital loss from fiscal 2019. We believe that we have meritorious defenses against this assessment and will vigorously defend
our position. We do not expect the resolution of the proposed adjustment to have a material impact on our financial position or
liquidity.
In December 2021, the Organization for Economic Cooperation and Development (OECD) established a framework, referred to as
Pillar 2, designed to ensure large multinational enterprises pay a minimum 15 percent level of tax on the income arising in each
jurisdiction in which they operate. Numerous countries have already enacted the OECD model rules effective for taxable years
beginning after December 31, 2023, which for us is fiscal 2025. There was no material impact on our consolidated financial
statements. Several other countries have enacted or drafted legislation that is not yet effective for us, and we do not expect this
legislation to have a material impact on our consolidated financial statements. We will continue to monitor for new legislation and
guidance and evaluate potential impact on our consolidated financial statements.
(16) Contingencies
During fiscal 2020, we received notice from the tax authorities of the State of São Paulo, Brazil regarding our compliance with its
state sales tax requirements. As a result, we have been assessed additional state sales taxes, interest, and penalties. We believe that we
have meritorious defenses against this claim and will vigorously defend our position. As of August 25, 2024, we are unable to estimate
any possible loss and have not recorded a loss contingency for this matter.
(17) Business Segment and Geographic Information
We operate in the packaged foods industry. Our operating segments are as follows: North America Retail, International, North
America Pet, and North America Foodservice. In the first quarter of fiscal 2025, we renamed the Pet segment to the North America
Pet segment to reflect that pet food results outside North America are recorded in the International segment. There were no changes to
the composition of our reportable segments or information reviewed by our chief operating decision maker and no impact on our
historical segment operating results.
Our North America Retail operating segment reflects business with a wide variety of grocery stores, mass merchandisers, membership
stores, natural food chains, drug, dollar and discount chains, convenience stores, and e-commerce grocery providers. Our product
categories in this business segment include ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough
products, dessert and baking mixes, frozen pizza and pizza snacks, snack bars, fruit snacks, savory snacks, and a wide variety of
organic products including ready-to-eat cereal, frozen and shelf-stable vegetables, meal kits, fruit snacks, and snack bars.
Our International operating segment consists of retail and foodservice businesses outside of the United States and Canada. Our
product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes,
shelf-stable vegetables, and pet food products. We also sell super-premium ice cream and frozen desserts directly to consumers
through owned retail shops. Our International segment also includes products manufactured in the United States for export, mainly to
Caribbean and Latin American markets, as well as products we manufacture for sale to our international joint ventures. Revenues from
export activities are reported in the region or country where the end customer is located.
17
Our North America Pet operating segment includes pet food products sold primarily in the United States and Canada in national pet
superstore chains, e-commerce retailers, grocery stores, regional pet store chains, mass merchandisers, and veterinary clinics and
hospitals. Our product categories include dog and cat food (dry foods, wet foods, and treats) made with whole meats, fruits,
vegetables, and other high-quality natural ingredients. Our tailored pet product offerings address specific dietary, lifestyle, and life-
stage needs and span different product types, diet types, breed sizes for dogs, life-stages, flavors, product functions, and textures and
cuts for wet foods.
Our North America Foodservice segment consists of foodservice businesses in the United States and Canada. Our major product
categories in our North America Foodservice operating segment are ready-to-eat cereals, snacks, refrigerated yogurt, frozen meals,
unbaked and fully baked frozen dough products, baking mixes, and bakery flour. Many products we sell are branded to the consumer
and nearly all are branded to our customers. We sell to distributors and operators in many customer channels including foodservice,
vending, and supermarket bakeries.
Operating profit for these segments excludes unallocated corporate items, gain or loss on divestitures, and restructuring, impairment,
and other exit costs. Results from certain businesses managed by our Gold Medal Ventures entity are included within corporate and
other net sales and unallocated corporate items within operating profit. Unallocated corporate items also include corporate overhead
expenses, variances to planned North American employee benefits and incentives, certain charitable contributions, restructuring
initiative project-related costs, gains and losses on corporate investments, and other items that are not part of our measurement of
segment operating performance. These include gains and losses arising from the revaluation of certain grain inventories and gains and
losses from mark-to-market valuation of certain commodity positions until passed back to our operating segments. These items
affecting operating profit are centrally managed at the corporate level and are excluded from the measure of segment profitability
reviewed by executive management. Under our supply chain organization, our manufacturing, warehouse, and distribution activities
are substantially integrated across our operations in order to maximize efficiency and productivity. As a result, fixed assets and
depreciation and amortization expenses are neither maintained nor available by operating segment.
Our operating segment results were as follows:
Quarter Ended
In Millions
Aug. 25, 2024
Aug. 27, 2023
Net sales:
North America Retail
$
$
International
North America Pet
North America Foodservice
Total segment net sales
$
$
Corporate and other
Total net sales
$
$
Operating profit:
North America Retail
$
$
International
North America Pet
North America Foodservice
Total segment operating profit
$
$
Unallocated corporate items
Restructuring, impairment, and other exit costs
Operating profit
$
$
18
Net sales for our North America Retail operating units were as follows:
Quarter Ended
In Millions
Aug. 25, 2024
Aug. 27, 2023
U.S. Meals & Baking Solutions
$
$
U.S. Snacks
U.S. Morning Foods
Canada
Total
$
$
Net sales by class of similar products were as follows:
Quarter Ended
In Millions
Aug. 25, 2024
Aug. 27, 2023
Snacks
$
$
Cereal
Convenient meals
Pet
Dough
Baking mixes and ingredients
Yogurt
Super-premium ice cream
Other
Total
$
$
19
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
INTRODUCTION
This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in
conjunction with the MD&A included in our Annual Report on Form 10-K for the fiscal year ended May 26, 2024, for important
background regarding, among other things, our key business drivers. Significant trademarks and service marks used in our business
are set forth in
italics
herein. Certain terms used throughout this report are defined in the “Glossary” section below.
Our key priorities in fiscal 2025 are to accelerate our organic net sales growth, create fuel for investment, and drive strong cash
generation. Amid a continued uncertain macroeconomic backdrop for consumers, we expect volume trends in our categories will
gradually improve over the course of the year, though full-year category dollar growth is expected to be below our long-term growth
projections. We expect to increase our organic net sales growth by delivering remarkable experiences across our leading food brands,
resulting in improved household penetration and stronger market share trends versus the prior year. Our fiscal 2025 plan calls for
product news and innovation focused on taste, health, convenience, and value, supported with strong brand campaigns and
omnichannel visibility. We expect to generate higher levels of Holistic Margin Management (HMM) cost savings to more than offset
input cost inflation in fiscal 2025. We expect to reinvest in the business, including plans for increased brand-building investment in
fiscal 2025 to drive improved volume performance.
CONSOLIDATED RESULTS OF OPERATIONS
First Quarter Results
In the first quarter of fiscal 2025, net sales and organic net sales decreased 1 percent compared to the same period last year. Operating
profit decreased 11 percent to $832 million, primarily driven by an unfavorable change in the mark-to-market valuation of certain
commodity positions and grain inventories, unfavorable net price realization and mix, and an increase in selling, general and
administrative (SG&A) expenses, partially offset by lower input costs. Operating profit margin of 17.2 percent decreased 180 basis
points. Adjusted operating profit of $865 million decreased 4 percent on a constant-currency basis, primarily driven by unfavorable
net price realization and mix and an increase in SG&A expenses, partially offset by lower input costs. Adjusted operating profit
margin decreased 50 basis points to 17.8 percent. Diluted earnings per share of $1.03 decreased 10 percent in the first quarter of fiscal
2025. Adjusted diluted earnings per share of $1.07 decreased 2 percent on a constant-currency basis compared to the first quarter of
fiscal 2024. See the “Non-GAAP Measures” section below for a description of our use of measures not defined by GAAP.
A summary of our consolidated financial results for the first quarter of fiscal 2025 follows:
Quarter Ended Aug. 25, 2024
In millions,
except per share
Quarter Ended
Aug. 25, 2024 vs.
Aug. 27, 2023
Percent
of Net
Sales
Constant-
Currency
Growth (a)
Net sales
$
4,848.1
(1)
%
Operating profit
831.5
(11)
%
17.2
%
Net earnings attributable to General Mills
579.9
(14)
%
Diluted earnings per share
$
1.03
(10)
%
Organic net sales growth rate (a)
(1)
%
Adjusted operating profit (a)
865.3
(4)
%
17.8
%
(4)
%
Adjusted diluted earnings per share (a)
$
1.07
(2)
%
(2)
%
(a) See the “Non-GAAP Measures” section below for our use of measures not defined by GAAP.
Consolidated
net sales
Quarter Ended
Aug. 25, 2024
Aug. 25, 2024 vs.
Aug. 27, 2023
Aug. 27, 2023
Net sales (in millions)
$
4,848.1
(1)
%
$
4,904.7
Contributions from volume growth (a)
Flat
Net price realization and mix
(1)
pt
Foreign currency exchange
Flat
Note: Table may not foot due to rounding.
(a) Measured in tons based on the stated weight of our product shipments.
20
Net sales in the first quarter of fiscal 2025 decreased 1 percent compared to the same period in fiscal 2024, driven by unfavorable net
price realization and mix.
Components of organic net sales growth are shown in the following table:
Quarter Ended Aug. 25, 2024 vs.
Quarter Ended Aug. 27, 2023
Contributions from organic volume growth (a)
Flat
Organic net price realization and mix
(1)
pt
Organic net sales growth
(1)
pt
Foreign currency exchange
Flat
Acquisition
Flat
Net sales growth
(1)
pt
Note: Table may not foot due to rounding.
(a) Measured in tons based on the stated weight of our product shipments.
Organic net sales decreased 1 percent in the first quarter of fiscal 2025 compared to the same period in fiscal 2024, driven by
unfavorable organic net price realization and mix.
Cost of sales
increased $25 million to $3,159 million in the first quarter of fiscal 2025 compared to the same period in fiscal 2024.
The increase included a $7 million increase attributable to volume and a $47 million decrease attributable to product rate and mix. We
recorded a $29 million net increase in cost of sales related to the mark-to-market valuation of certain commodity positions and grain
inventories in the first quarter of fiscal 2025, compared to a $45 million net decrease in the first quarter of fiscal 2024. We also
recorded $1 million of restructuring charges in the first quarter of fiscal 2025 compared to $9 million of restructuring charges and $1
million of restructuring initiative project-related costs in cost of sales in the first quarter of fiscal 2024 (please refer to Note 3 to the
Consolidated Financial Statements in Part I, Item 1 of this report).
SG&A expenses
increased $16 million to $855 million in the first quarter of fiscal 2025, compared to the same period in fiscal 2024,
primarily driven by increased media and advertising expenses. SG&A expenses as a percent of net sales in the first quarter of fiscal
2025 increased 50 basis points compared to the first quarter of fiscal 2024.
Restructuring, impairment, and other exit costs
totaled $2 million in the first quarter of fiscal 2025, compared to $1 million in the
same period last year (please refer to Note 3 to the Consolidated Financial Statements in Part I, Item 1 of this report).
Benefit plan non-service income
totaled $14 million in the first quarter of fiscal 2025, compared to $17 million in the same period
last year, primarily reflecting higher amortization of losses.
Interest, net
for the first quarter of fiscal 2025 totaled $124 million, up $7 million from the first quarter of fiscal 2024, primarily
driven by higher average long-term debt levels.
The
effective tax rate
The 0.9 percentage point increase was primarily due to certain nonrecurring discrete tax benefits in the first quarter of fiscal 2024,
partially offset by favorable earnings mix by jurisdiction in the first quarter of fiscal 2025. Our effective tax rate excluding certain
items affecting comparability was 21.9 percent in the first quarter of fiscal 2025, compared to 21.1 percent in the same period last year
(see the “Non-GAAP Measures” section below for a description of our use of measures not defined by GAAP). The 0.8 percentage
point increase was primarily due to certain nonrecurring discrete tax benefits in the first quarter of fiscal 2024, partially offset by
favorable earnings mix by jurisdiction in the first quarter of fiscal 2025.
21
After-tax earnings from joint ventures
decreased to $19 million compared to $24 million in the
same period in fiscal 2024, primarily due to favorable discrete tax items in the first quarter of fiscal 2024, higher SG&A expenses, and
a decrease in volume at Cereal Partners Worldwide (CPW), partially offset by favorable net price realization and mix at CPW and
lower SG&A expenses at Häagen-Dazs Japan, Inc. (HDJ). On a constant-currency basis, after-tax earnings from joint ventures
decreased 14 percent (see the “Non-GAAP Measures” section below for a description of our use of measures not defined by GAAP).
The components of our joint ventures’ net sales growth are shown in the following table:
Quarter Ended Aug. 25, 2024 vs.
Quarter Ended Aug. 27, 2023
CPW
HDJ
Total
Contributions from volume growth (a)
(2)
pts
1
pt
Net price realization and mix
3
pts
(1)
pt
Net sales growth in constant currency
1
pt
Flat
1
pt
Foreign currency exchange
(4)
pts
(8)
pts
(5)
pts
Net sales growth
(4)
pts
(8)
pts
(4)
pts
Note: Table may not foot due to rounding.
(a) Measured in tons based on the stated weight of our product shipments.
Average diluted shares outstanding
decreased by 28 million in the first quarter of fiscal 2025 from the same period a year ago
primarily due to share repurchases, partially offset by option exercises.
SEGMENT OPERATING RESULTS
Our businesses are organized into four operating segments: North America Retail, International, North America Pet, and North
America Foodservice. Please refer to Note 17 of the Consolidated Financial Statements in Part I, Item 1 of this report for a description
of our operating segments.
North America Retail Segment Results
North America Retail net sales were as follows:
Quarter Ended
Aug. 25,
2024
Aug. 25, 2024 vs
Aug. 27, 2023
Aug. 27,
2023
Net sales (in millions)
$
3,016.6
(2)
%
$
3,073.0
Contributions from volume growth (a)
(3)
pts
Net price realization and mix
1
pt
Foreign currency exchange
Flat
Note: Table may not foot due to rounding.
(a) Measured in tons based on the stated weight of our product shipments.
North America Retail net sales decreased 2 percent in the first quarter of fiscal 2025 compared to the same period in fiscal 2024,
driven by a decrease in contributions from volume growth, partially offset by favorable net price realization and mix.
The components of North America Retail organic net sales growth are shown in the following table:
Quarter Ended
Aug. 25, 2024
Contributions from organic volume growth (a)
(3)
pts
Organic net price realization and mix
1
pt
Organic net sales growth
(2)
pts
Foreign currency exchange
Flat
Net sales growth
(2)
pts
Note: Table may not foot due to rounding.
(a) Measured in tons based on the stated weight of our product shipments.
22
North America Retail organic net sales decreased 2 percent in the first quarter of fiscal 2025 compared to the same period in fiscal
2024, driven by a decrease in contributions from organic volume growth, partially offset by favorable organic net price realization and
mix.
North America Retail net sales percentage change by operating unit are shown in the following table:
Quarter Ended
Aug. 25, 2024
U.S. Snacks
(5)
%
U.S. Morning Foods
(3)
%
Canada (a)
3
%
U.S. Meals & Baking Solutions
Flat
Total
(2)
%
(a) On a constant-currency basis, Canada net sales increased 6 percent in the first quarter of fiscal 2025 compared to the same period
in fiscal 2024. See the “Non-GAAP Measures” section below for our use of this measure not defined by GAAP.
Segment operating profit decreased 7 percent to $746 million in the first quarter of fiscal 2025, compared to $798 million in the same
period in fiscal 2024, primarily driven by higher input costs and a decrease in contributions from volume growth, partially offset by
favorable net price realization and mix. Segment operating profit decreased 6 percent on a constant -currency basis in the first quarter
of fiscal 2025, compared to the same period in fiscal 2024 (see the “Non-GAAP Measures” section below for our use of this measure
not defined by GAAP).
International Segment Results
International net sales were as follows:
Quarter Ended
Aug. 25,
2024
Aug. 25, 2024 vs
Aug. 27, 2023
Aug. 27,
2023
Net sales (in millions)
$
717.0
Flat
$
715.8
Contributions from volume growth (a)
8
pts
Net price realization and mix
(6)
pts
Foreign currency exchange
(2)
pts
Note: Table may not foot due to rounding.
(a) Measured in tons based on the stated weight of our product shipments.
International net sales in the first quarter of fiscal 2025 essentially matched the same period in fiscal 2024.
The components of International organic net sales growth are shown in the following table:
Quarter Ended
Aug. 25, 2024
Contributions from organic volume growth (a)
6
pts
Organic net price realization and mix
(7)
pts
Organic net sales growth
(1)
pt
Foreign currency exchange
(2)
pts
Acquisition (b)
3
pts
Net sales growth
Flat
Note: Table may not foot due to rounding.
(a) Measured in tons based on the stated weight of our product shipments.
(b) Acquisition of a pet food business in Europe in fiscal 2024. Please see Note 2 to the Consolidated Financial Statements in Part I,
International organic net sales decreased 1 percent in the first quarter of fiscal 2025, compared to the same period in fiscal 2024,
driven by unfavorable organic net price realization and mix, partially offset by an increase in contributions from organic volume
growth.
23
Segment operating profit decreased 58 percent to $21 million in the first quarter of fiscal 2025, compared to $50 million in the same
period in fiscal 2024, primarily driven by unfavorable net price realization and mix and higher SG&A expenses, partially offset by
lower input costs and an increase in contributions from volume growth. Segment operating profit decreased 64 percent on a constant-
currency basis in the first quarter of fiscal 2025, compared to the same period in fiscal 2024 (see the “Non-GAAP Measures” section
below for our use of this measure not defined by GAAP).
North America Pet Segment Results
North America Pet net sales were as follows:
Quarter Ended
Aug. 25,
2024
Aug. 25, 2024 vs
Aug. 27, 2023
Aug. 27,
2023
Net sales (in millions)
$
576.1
(1)
%
$
579.9
Contributions from volume growth (a)
3
pts
Net price realization and mix
(3)
pts
Foreign currency exchange
Flat
Note: Table may not foot due to rounding.
(a) Measured in tons based on the stated weight of our product shipments.
North America Pet net sales decreased 1 percent in the first quarter of fiscal 2025, compared to the same period in fiscal 2024, driven
by unfavorable net price realization and mix, partially offset by an increase in contributions from volume growth.
The components of North America Pet organic net sales growth are shown in the following table:
Quarter Ended
Aug. 25, 2024
Contributions from organic volume growth (a)
3
pts
Organic net price realization and mix
(3)
pts
Organic net sales growth
(1)
pt
Foreign currency exchange
Flat
Net sales growth
(1)
pt
Note: Table may not foot due to rounding.
(a) Measured in tons based on the stated weight of our product shipments.
North America Pet organic net sales decreased 1 percent in the first quarter of fiscal 2025, compared to the same period in fiscal 2024,
driven by unfavorable organic net price realization and mix, partially offset by an increase in contributions from organic volume
growth.
Segment operating profit increased 7 percent to $119 million in the first quarter of fiscal 2025, compared to $111 million in the same
period in fiscal 2024, primarily driven by lower input costs and an increase in contributions from volume growth, partially offset by
unfavorable net price realization and mix and higher SG&A expenses . Segment operating profit increased 7 percent on a constant-
currency basis in the first quarter of fiscal 2025, compared to the same period in fiscal 2024 (see the “Non-GAAP Measures” section
below for our use of this measure not defined by GAAP).
24
North America Foodservice Segment Results
North America Foodservice net sales were as follows:
Quarter Ended
Aug. 25,
2024
Aug. 25, 2024 vs
Aug. 27, 2023
Aug. 27,
2023
Net sales (in millions)
$
536.2
Flat
$
536.0
Contributions from volume growth (a)
Flat
Net price realization and mix
Flat
Foreign currency exchange
Flat
Note: Table may not foot due to rounding.
(a) Measured in tons based on the stated weight of our product shipments.
North America Foodservice net sales in the first quarter of fiscal 2025 essentially matched the same period in fiscal 2024.
The components of North America Foodservice organic net sales growth are shown in the following table:
Quarter Ended
Aug. 25, 2024
Contributions from organic volume growth (a)
Flat
Organic net price realization and mix
Flat
Organic net sales growth
Flat
Foreign currency exchange
Flat
Net sales growth
Flat
Note: Table may not foot due to rounding.
(a) Measured in tons based on the stated weight of our product shipments.
North America Foodservice organic net sales in the first quarter of fiscal 2025 essentially matched the same period in fiscal 2024.
Segment operating profit increased 21 percent to $72 million in the first quarter of fiscal 2025, compared to $59 million in the same
period in fiscal 2024, primarily driven by lower input costs. Segment operating profit increased 21 percent on a constant-currency
basis in the first quarter of fiscal 2025, compared to the same period in fiscal 2024 (see the “Non-GAAP Measures” section below for
our use of this measure not defined by GAAP).
UNALLOCATED CORPORATE ITEMS
Unallocated corporate expenses totaled $124 million in the first quarter of fiscal 2025, compared to $87 million in the same period in
fiscal 2024. In the first quarter of fiscal 2025, we recorded a $29 million net increase in expense related to the mark-to-market
valuation of certain commodity positions and grain inventories, compared to a $45 million net decrease in expense in the same period
last year. Certain compensation and benefits expenses decreased in the first quarter of fiscal 2025 compared to the same period last
year. We recorded $1 million of restructuring charges in cost of sales in the first quarter of fiscal 2025, compared to $9 million of
restructuring charges in cost of sales in the same period last year. We recorded $3 million of net losses related to valuation
adjustments on certain corporate investments in the first quarter of fiscal 2024. In addition, we recorded $2 million of integration costs
in the first quarter of fiscal 2025 related to our acquisition of a pet food business in Europe in fiscal 2024.
LIQUIDITY AND CAPITAL RESOURCES
During the first quarter of fiscal 2025, cash provided by operations was $624 million compared to $378 million in the same period last
year. The $246 million increase was primarily driven by a $350 million change in current assets and liabilities, partially offset by a
$97 million decrease in net earnings. The $350 million change in current assets and liabilities is primarily driven by a $367 million
change in the timing of accounts payable.
Cash used by investing activities during the first quarter of fiscal 2025 was $148 million compared to $136 million for the same period
in fiscal 2024. During the first quarter of fiscal 2025, we paid $8 million related to a purchase price holdback after certain closing
conditions were met for the acquisition of a pet food business in Europe in the fourth quarter of fiscal 2024. In addition, during the
first quarter of fiscal 2025, we spent $140 million on purchases of land, buildings, and equipment in the first quarter of fiscal 2025,
compared to $142 million in the same period last year.
25
Cash used by financing activities during the first quarter of fiscal 2025 was $429 million compared to $334 million in the same period
in fiscal 2024. We had $238 million of net debt issuances in the first quarter of fiscal 2025, compared to $552 million of net debt
issuances in the same period a year ago. We paid $300 million for purchases of common stock for treasury in the first quarter of fiscal
2025, compared to $500 million in the same period in fiscal 2024. In addition, we paid $338 million of dividends in the first quarter of
fiscal 2025, compared to $348 million in the same period last year.
As of August 25, 2024, we had $414 million of cash and cash equivalents in foreign jurisdictions. In anticipation of repatriating funds
from foreign jurisdictions, we record local country withholding taxes on our international earnings, as applicable. We may repatriate
our cash and cash equivalents held by our foreign subsidiaries without such funds being subject to further U.S. income tax
liability. Earnings prior to fiscal 2018 from our foreign subsidiaries remain permanently reinvested in those jurisdictions.
The following table details the fee-paid committed and uncommitted credit lines we had available as of August 25, 2024:
In Billions
Facility
Amount
Borrowed
Amount
Committed credit facility expiring April 2026
$
2.7
$
-
Uncommitted credit facilities
0.7
-
Total committed and uncommitted credit facilities
$
3.4
$
-
To ensure availability of funds, we maintain bank credit lines and have commercial paper programs available to us in the United States
and Europe.
Certain of our long-term debt agreements, our credit facilities, and our noncontrolling interests contain restrictive covenants. As of
August 25, 2024, we were in compliance with all of these covenants.
We have $1,640 million of long-term debt maturing in the next 12 months that is classified as current, including €750 million of
floating-rate notes due November 8, 2024, and $800 million of 4.0 percent fixed-rate notes due April 17, 2025. We believe that cash
flows from operations, together with available short- and long-term debt financing, will be adequate to meet our liquidity and capital
needs for at least the next 12 months.
The third-party holder of the General Mills Cereals, LLC (GMC) Class A Interests receives quarterly preferred distributions from
available net income based on the application of a floating preferred return rate to the holder’s capital account balance established in
the most recent mark-to-market valuation (currently $252 million). On June 1, 2024, the floating preferred return rate on GMC’s Class
A Interests was reset to the sum of the three-month Term SOFR plus 261 basis points. The preferred return rate is adjusted every three
years through a negotiated agreement with the Class A Interest holder or through a remarketing auction.
We have an option to purchase the Class A Interests for consideration equal to the then current capital account value, plus any unpaid
preferred return and the prescribed make-whole amount. If we purchase these interests, any change in the third-party holder’s capital
account from its original value will be charged directly to retained earnings and will increase or decrease the net earnings used to
calculate EPS in that period.
CRITICAL ACCOUNTING ESTIMATES
Our significant accounting policies are described in Note 2 to the Consolidated Financial Statements included in our Annual Report on
Form 10-K for the fiscal year ended May 26, 2024. The accounting policies used in preparing our interim fiscal 2025 Consolidated
Financial Statements are the same as those described in our Form 10-K. Please see Note 1 to the Consolidated Financial Statements in
Part I, Item 1 of this report for additional information.
Our critical accounting estimates are those that have meaningful impact on the reporting of our financial condition and results of
operations. These estimates include our accounting for revenue recognition, valuation of long-lived assets, intangible assets, income
taxes, and defined benefit pension, other postretirement benefit, and postemployment benefit plans. The assumptions and
methodologies used in the determination of those estimates as of August 25, 2024, are the same as those described in our Annual
Report on Form 10-K for the fiscal year ended May 26, 2024.
Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of
fiscal 2024. As a result of lower future profitability projections for our Latin America reporting unit, we determined that the fair value
of the reporting unit was less than its book value and recorded a $117 million non-cash goodwill impairment charge. In addition,
during the fourth quarter of fiscal 2024, we executed our fiscal 2025 planning process and preliminary long-range planning process,
which resulted in lower future sales and profitability projections for the businesses supporting our
Top Chews
,
True Chews
, and
EPIC
brand intangible assets. As a result of this triggering event, we performed an interim impairment assessment of these assets as of May
26
26, 2024, and determined that the fair value of these brand intangible assets no longer exceeded the carrying values of the respective
assets, resulting in $103 million of non-cash impairment charges. We recorded impairment charges in restructuring, impairment, and
other exit costs in our Consolidated Statements of Earnings. Our estimates of the fair values were determined based on a discounted
cash flow model using inputs which included our long-range cash flow projections for the businesses, royalty rates, weighted -average
cost of capital rates, and tax rates. The fair values are Level 3 assets in the fair value hierarchy.
All other intangible asset fair values were substantially in excess of the carrying values, except for the
Uncle Toby’s
asset. In addition, while having significant coverage as of our fiscal 2024 assessment date, the
Progresso
,
Nudges
, and
True Chews
brand intangible assets had risk of decreasing coverage. We will continue to monitor these businesses for potential impairment.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In March 2024, the Securities and Exchange Commission (SEC) issued final rules on the enhancement and standardization of climate-
related disclosures. The rules require disclosure of, among other things: material climate-related risks; activities to mitigate or adapt to
such risks; governance and management of such risks; and material greenhouse gas (GHG) emissions from operations owned or
controlled (Scope 1) and/or indirect emissions from purchased energy consumed in operations (Scope 2). Additionally, the rules
require disclosure in the notes to the financial statements of the effects of severe weather events and other natural conditions, subject
to certain materiality thresholds. The SEC has issued a stay on the final rules due to litigation and the effective date is delayed
indefinitely. We are in the process of analyzing the impact of the rules on our disclosures.
In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09 requiring
enhanced income tax disclosures. The ASU requires disclosure of specific categories and disaggregation of information in the rate
reconciliation table. The ASU also requires disclosure of disaggregated information related to income taxes paid, income or loss from
continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. The
requirements of the ASU are effective for annual periods beginning after December 15, 2024, which for us is fiscal 2026. Early
adoption is permitted and the amendments should be applied on a prospective basis. Retrospective application is permitted. We are in
the process of analyzing the impact of the ASU on our related disclosures.
In November 2023, the FASB issued ASU 2023-07 requiring enhanced segment disclosures. The ASU requires disclosure of
significant segment expenses regularly provided to the chief operating decision maker (CODM) included within segment operating
profit or loss. Additionally, the ASU requires a description of how the CODM utilizes segment operating profit or loss to assess
segment performance. The requirements of the ASU are effective for annual periods beginning after December 15, 2023, and interim
periods within fiscal years beginning after December 15, 2024. For us, annual reporting requirements will be effective for our fiscal
2025 and interim reporting requirements will be effective beginning with our first quarter of fiscal 2026. Early adoption is permitted
and retrospective application is required for all periods presented. We are in the process of analyzing the impact of the ASU on our
related disclosures.
27
NON-GAAP MEASURES
We have included in this report measures of financial performance that are not defined by GAAP. We believe that these measures
provide useful information to investors, and include these measures in other communications to investors.
For each of these non-GAAP financial measures, we are providing below a reconciliation of the differences between the non-GAAP
measure and the most directly comparable GAAP measure, an explanation of why we believe the non-GAAP measure provides useful
information to investors, and any additional material purposes for which our management or Board of Directors uses the non-GAAP
measure. These non-GAAP measures should be viewed in addition to, and not in lieu of, the comparable GAAP measure.
Significant Items Impacting Comparability
Several measures below are presented on an adjusted basis. The adjustments are either items resulting from infrequently occurring
events or items that, in management’s judgment, significantly affect the year-to-year assessment of operating results.
The following are descriptions of significant items impacting comparability of our results.
Mark-to-market effects
Net mark-to-market valuation of certain commodity positions recognized in unallocated corporate items. Please see Note 6 to the
Consolidated Financial Statements in Part I, Item 1 of this report.
Restructuring charges and project-related costs
Restructuring charges and project-related costs related to previously announced restructuring actions recorded in fiscal 2025 and fiscal
2024. Please see Note 3 to the Consolidated Financial Statements in Part I, Item 1 of this report.
Acquisition integration costs
Integration costs related to the acquisition of a pet food business in Europe recorded in fiscal 2025. Integration costs primarily
resulting from the acquisition of TNT Crust recorded in fiscal 2024. Please see Note 2 to the Consolidated Financial Statements in Part
I, Item 1 of this report.
Investment activity, net
Valuation adjustments of certain corporate investments in fiscal 2025 and fiscal 2024.
Product recall
Costs related to the fiscal 2023 voluntary recall of certain international
Häagen-Dazs
Organic Net Sales Growth Rates
We provide organic net sales growth rates for our consolidated net sales and segment net sales. This measure is used in reporting to
our Board of Directors and executive management and as a component of the measurement of our performance for incentive
compensation purposes. We believe that organic net sales growth rates provide useful information to investors because they provide
transparency to underlying performance in our net sales by excluding the effect that foreign currency exchange rate fluctuations,
acquisitions, divestitures, and a 53
rd
reported net sales growth rates, the relevant GAAP measures, are included in our Consolidated Results of Operations and Results of
Segment Operations discussions in the MD&A above.
28
Adjusted Operating Profit as a Percent of Net Sales (Adjusted Operating Profit Margin)
We believe this measure provides useful information to investors because it is important for assessing our operating profit margin on a
comparable basis.
Our adjusted operating profit margins are calculated as follows:
Quarter Ended
Aug. 25, 2024
Aug. 27, 2023
In Millions
Value
Percent of
Net Sales
Value
Percent of
Net Sales
Operating profit as reported
$
831.5
17.2
%
$
930.0
19.0
%
Mark-to-market effects
28.8
0.6
%
(44.9)
(0.9)
%
Restructuring charges
2.9
0.1
%
9.8
0.2
%
Acquisition integration costs
1.6
-
%
0.2
-
%
Investment activity, net
0.4
-
%
2.9
0.1
%
Project-related costs
0.1
-
%
0.8
-
%
Product recall
-
-
%
0.2
-
%
Adjusted operating profit
$
865.3
17.8
%
$
899.0
18.3
%
Note: Table may not foot due to rounding.
For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above.
Adjusted Operating Profit and Related Constant-currency Growth Rate
This measure is used in reporting to our Board of Directors and executive management and as a component of the measurement of our
performance for incentive compensation purposes. We believe that this measure provides useful information to investors because it is
the operating profit measure we use to evaluate operating profit performance on a comparable year-to-year basis. Additionally, the
measure is evaluated on a constant-currency basis by excluding the effect that foreign currency exchange rate fluctuations have on
year-to-year comparability given the volatility in foreign currency exchange rates.
Our adjusted operating profit growth on a constant-currency basis is calculated as follows:
Quarter Ended
Aug. 25, 2024
Aug. 27, 2023
Change
Operating profit as reported
$
831.5
$
930.0
(11)
%
Mark-to-market effects
28.8
(44.9)
Restructuring charges
2.9
9.8
Acquisition integration costs
1.6
0.2
Investment activity, net
0.4
2.9
Project-related costs
0.1
0.8
Product recall
-
0.2
Adjusted operating profit
$
865.3
$
899.0
(4)
%
Foreign currency exchange impact
Flat
Adjusted operating profit growth, on a constant-currency basis
(4)
%
Note: Table may not foot due to rounding.
For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above.
29
Adjusted Diluted EPS and Related Constant-currency Growth Rate
This measure is used in reporting to our Board of Directors and executive management. We believe that this measure provides useful
information to investors because it is the profitability measure we use to evaluate earnings performance on a comparable year-to-year
basis.
The reconciliation of our GAAP measure, diluted EPS, to adjusted diluted EPS and the related constant-currency growth rates follows:
Quarter Ended
Per Share Data
Aug. 25, 2024
Aug. 27, 2023
Change
Diluted earnings per share, as reported
$
1.03
$
1.14
(10)
%
Mark-to-market effects
0.04
(0.06)
Restructuring charges
-
0.01
Adjusted diluted earnings per share
$
1.07
$
1.09
(2)
%
Foreign currency exchange impact
Flat
Adjusted diluted earnings per share growth, on a constant-currency basis
(2)
%
Note: Table may not foot due to rounding.
For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above.
See our reconciliation below of the effective income tax rate as reported to the adjusted effective income tax rate for the tax impact of
each item affecting comparability.
Constant-currency After-tax Earnings from Joint Ventures Growth Rates
We believe that this measure provides useful information to investors because it provides transparency to underlying performance of
our joint ventures by excluding the effect that foreign currency exchange rate fluctuations have on year-to-year comparability given
volatility in foreign currency exchange markets.
After-tax earnings from joint ventures growth rates on a constant-currency basis are calculated as follows:
Percentage Change in
After-Tax Earnings from Joint
Ventures as Reported
Impact of Foreign
Currency
Exchange
Percentage Change in After-Tax
Earnings from Joint Ventures
on Constant-Currency Basis
Quarter Ended Aug. 25, 2024
(18)
%
(4)
pts
(14)
%
Note: Table may not foot due to rounding.
Net Sales Growth Rates for Our Canada Operating Unit on Constant-currency Basis
We believe that this measure of our Canada operating unit net sales provides useful information to investors because it provides
transparency to the underlying performance for the Canada operating unit within our North America Retail segment by excluding the
effect that foreign currency exchange rate fluctuations have on year-to-year comparability given volatility in foreign currency
exchange markets.
Net sales growth rates for our Canada operating unit on a constant-currency basis are calculated as follows:
Percentage Change in
Net Sales
as Reported
Impact of Foreign
Currency
Exchange
Percentage Change in
Net Sales on Constant-
Currency Basis
Quarter Ended Aug. 25, 2024
3
%
(3)
pts
6
%
Note: Table may not foot due to rounding.
Constant-currency Segment Operating Profit Growth Rates
We believe that this measure provides useful information to investors because it provides transparency to underlying performance of
our segments by excluding the effect that foreign currency exchange rate fluctuations have on year-to-year comparability given
volatility in foreign currency exchange markets.
30
Our segments’ operating profit growth rates on a constant-currency basis are calculated as follows:
Quarter Ended Aug. 25, 2024
Percentage Change in
Operating Profit
as Reported
Impact of Foreign
Currency
Exchange
Percentage Change in Operating
Profit on Constant-Currency
Basis
North America Retail
(7)
%
Flat
(6)
%
International
(58)
%
6
pts
(64)
%
North America Pet
7
%
Flat
7
%
North America Foodservice
21
%
Flat
21
%
Note: Table may not foot due to rounding.
Adjusted Effective Income Tax Rates
We believe this measure provides useful information to investors because it presents the adjusted effective income tax rate on a
comparable year-to-year basis.
Adjusted effective income tax rates are calculated as follows:
Quarter Ended
Aug. 25, 2024
Aug. 27, 2023
In Millions
(Except Per Share Data)
Pretax
Earnings
(a)
Income
Taxes
Pretax
Earnings
(a)
Income
Taxes
As reported
$
721.8
$
157.4
$
830.0
$
173.2
Mark-to-market effects
28.8
6.6
(44.9)
(10.3)
Restructuring charges
2.9
0.7
9.8
4.7
Acquisition integration costs
1.6
0.4
0.2
0.1
Investment activity, net
0.4
0.1
2.9
1.0
Project-related costs
0.1
-
0.8
0.3
Product recall
-
-
0.2
0.1
As adjusted
$
755.6
$
165.3
$
799.1
$
169.0
Effective tax rate:
As reported
21.8%
20.9%
As adjusted
21.9%
21.1%
Sum of adjustments to income taxes
$
7.8
$
(4.3)
Average number of common shares - diluted EPS
563.8
591.4
Impact of income tax adjustments on adjusted diluted EPS
$
(0.01)
$
0.01
Note: Table may not foot due to rounding.
(a)
Earnings before income taxes and after-tax earnings from joint ventures.
For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above.
31
Glossary
AOCI
. Accumulated other comprehensive income (loss).
Adjusted diluted EPS.
Adjusted operating profit.
Adjusted operating profit margin.
Operating profit adjusted for certain items affecting year-over-year comparability, divided by net
sales.
Constant currency.
rates in effect for the comparable prior-year period. To present this information, current period results for entities reporting in
currencies other than United States dollars are translated into United States dollars at the average exchange rates in effect during the
corresponding period of the prior fiscal year, rather than the actual average exchange rates in effect during the current fiscal year.
Therefore, the foreign currency impact is equal to current year results in local currencies multiplied by the change in the average
foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year.
Core working capital.
Derivatives.
Financial instruments such as futures, swaps, options, and forward contracts that we use to manage our risk arising from
changes in commodity prices, interest rates, foreign exchange rates, and stock prices.
Euribor.
Fair value hierarchy.
For purposes of fair value measurement, we categorize assets and liabilities into one of three levels based on
the assumptions (inputs) used in valuing the asset or liability. Level 1 provides the most reliable measure of fair value, while Level 3
generally requires significant management judgment. The three levels are defined as follows:
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2: Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in
active markets or quoted prices for identical assets or liabilities in inactive markets.
Level 3: Unobservable inputs reflecting management’s assumptions about the inputs used in pricing the asset or liability.
Free cash flow.
Generally Accepted Accounting Principles (GAAP).
Guidelines, procedures, and practices that we are required to use in recording
and reporting accounting information in our financial statements.
Goodwill.
The difference between the purchase price of acquired companies plus the fair value of any noncontrolling and redeemable
interests and the related fair values of net assets acquired.
Gross margin.
Hedge accounting.
Accounting for qualifying hedges that allows changes in a hedging instrument’s fair value to offset corresponding
changes in the hedged item in the same reporting period. Hedge accounting is permitted for certain hedging instruments and hedged
items only if the hedging relationship is highly effective, and only prospectively from the date a hedging relationship is formally
documented.
Holistic Margin Management (HMM).
to offset input cost inflation, protect margins, and generate funds to reinvest in sales-generating activities.
Interest bearing instruments.
Notes payable, long-term debt, including current portion, cash and cash equivalents, and certain
interest bearing investments classified within prepaid expenses and other current assets and other assets.
Mark-to-market.
The act of determining a value for financial instruments, commodity contracts, and related assets or liabilities based
on the current market price for that item.
32
Net mark-to-market valuation of certain commodity positions.
Realized and unrealized gains and losses on derivative contracts
that will be allocated to segment operating profit when the exposure we are hedging affects earnings.
Net price realization.
The impact of list and promoted price changes, net of trade and other price promotion costs.
Net realizable value.
The estimated selling price in the ordinary course of business, less reasonably predictable costs of completion,
disposal, and transportation.
Noncontrolling interests.
Interests of subsidiaries held by third parties.
Notional amount.
The amount of a position or an agreed upon amount in a derivative contract on which the value of financial
instruments are calculated.
OCI.
Other Comprehensive Income (Loss).
Organic net sales growth
. Net sales growth adjusted for foreign currency translation, acquisitions, divestitures and a 53
rd
when applicable.
Project-related costs.
Costs incurred related to our restructuring initiatives not included in restructuring charges.
Reporting unit
. An operating segment or a business one level below an operating segment.
SOFR.
Strategic Revenue Management (SRM).
realization and mix by identifying and executing against specific opportunities to apply tools including pricing, sizing, mix
management, and promotion optimization across each of our businesses.
Supply chain input costs.
management, logistics, and warehousing.
Translation adjustments.
The impact of the conversion of our foreign affiliates’ financial statements to United States dollars for the
purpose of consolidating our financial statements.
Working capital
. Current assets and current liabilities, all as of the last day of our fiscal year.
33
CAUTIONARY STATEMENT RELEVANT TO FORWARD -LOOKING INFORMATION FOR THE PURPOSE OF “SAFE
HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This report contains or incorporates by reference forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995 that are based on our current expectations and assumptions. We also may make written or oral forward-looking
statements, including statements contained in our filings with the Securities and Exchange Commission and in our reports to
stockholders.
The words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “plan,” “project,” or similar
expressions identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results and
those currently anticipated or projected. We caution you not to place undue reliance on any such forward-looking statements.
In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, we are identifying important
factors that could affect our financial performance and could cause our actual results in future periods to differ materially from any
current opinions or statements.
Our future results could be affected by a variety of factors, such as: 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 critical 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.
You should also consider the risk factors that we identify in Item 1A of Part I of our Annual Report on Form 10-K for the fiscal year
ended May 26, 2024, which could also affect our future results.
We undertake no obligation to publicly revise any forward-looking statements to reflect events or circumstances after the date of those
statements or to reflect the occurrence of anticipated or unanticipated events.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
The estimated maximum potential value-at-risk arising from a one-day loss in fair value for our interest rate, foreign exchange,
commodity, and equity market-risk-sensitive instruments outstanding as of August 25, 2024, was as follows:
In Millions
One-day Risk
of Loss
Change During
Quarter Ended
Aug. 25, 2024
Analysis of Change
Interest rate instruments
$
53
$
-
Immaterial
Foreign currency instruments
34
4
Increase in exchange rate volatility
Commodity instruments
3
(1)
Decrease in commodity contracts
Equity instruments
2
-
Immaterial
For additional information, see Item 7A of Part II of our Annual Report on Form 10-K for the fiscal year ended May 26, 2024.
34
Item 4. Controls and Procedures.
We, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial
Officer, have evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule
13a-15(e) under the Securities Exchange Act of 1934). Based on our evaluation, our Chief Executive Officer and Chief Financial
Officer have concluded that, as of August 25, 2024, our disclosure controls and procedures were effective to ensure that information
required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934 is (1) recorded, processed,
summarized, and reported within the time periods specified in Securities and Exchange Commission rules and forms, and (2)
accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, in a manner
that allows timely decisions regarding required disclosure.
There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act
of 1934) during the quarter ended August 25, 2024, that materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.
PART II. OTHER INFORMATION
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
The following table sets forth information with respect to shares of our common stock that we purchased during the quarter ended
August 25, 2024:
Period
Total Number
of Shares
Purchased (a)
Average
Price Paid
Per Share
Total Number of Shares
Purchased as Part of a Publicly
Announced Program (b)
Maximum Number of Shares
that may yet be Purchased
Under the Program (b)
May 27, 2024 -
June 30, 2024
2,015,083
$
67.21
2,015,083
53,643,914
July 1, 2024 -
July 28, 2024
1,679,017
64.81
1,679,017
51,964,897
July 29, 2024 -
August 25, 2024
839,009
69.09
839,009
51,125,888
Total
4,533,109
$
66.67
4,533,109
51,125,888
(a) The total number of shares purchased includes shares of common stock withheld for the payment of withholding taxes upon the distribution of
deferred option units.
(b) On June 27, 2022, our Board of Directors approved an authorization for the repurchase of up to 100,000,000 shares of our common stock and
terminated the prior authorization. Purchases can be made in the open market or in privately negotiated transactions, including the use of call
options and other derivative instruments, Rule 10b5-1 trading plans, and accelerated repurchase programs. The Board did not specify an
expiration date for the authorization.
Item 5. Other Information.
Except as set forth below, during the fiscal quarter ended August 25, 2024, no director or officer of the Company adopted or
Regulation S-K.
During the fiscal quarter ended August 25, 2024,
, the Company’s
,
, relates to the exercise and sale of up to
2025. The plan is scheduled to terminate when all shares subject to the award are exercised and sold or July 31, 2025.
35
PART II. OTHER INFORMATION
Item 6.
Exhibits.
Financial Statements from the Quarterly Report on Form 10-Q of the Company for the quarter ended August 25,
2024, formatted in Inline Extensible Business Reporting Language: (i) Consolidated Statements of Earnings; (ii)
Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets; (iv) Consolidated
Statements of Total Equity; (v) Consolidated Statements of Cash Flows; and (vi) Notes to Consolidated Financial
Statements.
Cover Page, formatted in Inline Extensible Business Reporting Language and contained in Exhibit 101.
36
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
GENERAL MILLS, INC.
(Registrant)
Date: September 18, 2024
/s/ Mark A. Pallot
Mark A. Pallot
Vice President, Chief Accounting Officer
(Principal Accounting Officer and Duly Authorized Officer)