General Mills (GIS) 18 Sep 242025 Q1 Earnings call transcript

Good morning, and welcome to General Mills First Quarter Fiscal 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the call over to Jeff Siemon, Vice President, Investor Relations and Treasurer. Thank you. Please go ahead.

Thank you, Julian, and good morning to everyone. us fiscal our 'XX joining our session you quarter first results. appreciate today Q&A for on We I hope the are statements you our our release, views we listen Q&A had current available based Investor time to our made assumptions. may note and remarks on review Relations prepared session, website. Please our and that morning we that view this presentation do which to materials on our in press forward-looking make could morning's be CEO; press Jeff statements release call. I'm Please impact refer that non-GAAP may forward-looking Chairman and for factors which here to CFO. our discussed of reconciliations and this Bruce, Harmening, our with and for today's Kofi this information, morning on

please open up? we can it ahead Julian, to go you the get So Will and first question.

first Smith [Operator question Matt comes Stifel. from from Instructions] Our

believe you confidence in value-seeking provided you improvement Does seeing your 'XX behavior? categories weren't your by are Or you at-home more more that organic initially food the in benefit you continued guidance, more competitiveness. assuming muted emphasis in give on the much with sales outlook? shift when I fiscal consumption

for question. Thanks the

thought year, First, see our improvement I quarter played we kind of improvement out gradual the in and the as we we categories. would saw categories anticipated. our And a throughout macro in had from say environment, we'd an

bit of little if fact, a mix a percent, of couple pricing categories, you volume a categories. a and In look bit up at retail our in America they're little of the North of

us keep our our kind in made portfolio. that across the first quarter, for as the we in in us, direction work do it's to a And fourth played have And improving in out for key to right we we And some as of quarter. And step expected. more we so the competitiveness. the said is

quarter. in And food We really taking at to a at anticipate out we fact to that see home consumers uptick rest the expensive now year in slight did case for is average. job on food consumption the than did is do improving. We eating so the the home less us the the of for as keep And see that value. Xx might -- be is food

home are economically for great eating stressed. value is still a and consumers at consumers. so And

that can way thought. And billion-dollar on quarter the rest we've the on we is So guidance the is our which brands. look predicated say as on played I the improvement. predicated do, our improvement into our that continued because out we wouldn't categories at continued is of we're we all year, our continuing of here in news great really second momentum competitiveness confident even What got

to And you Are and consumers consumers? investments as And some is investments investment those follow-up, from couponing promotional talk and what line activity. promotional your with about purchasing on return from you you the innovation the in appreciate both receptivity I seeing incremental span But the and expected? can that on couponing investments, spending? had behavior a your those

Yes.

see products Buffalo back I brings. that returns It's value. -- up We they value did I And what because grow. digits you brands with those expect. we superiority couponing. in also what we and to We live continues Blue this on advertising first, tell launched ingredient for consumers protection about of you would on of consumers we line look in I I lot good talked But and And kind formula saw trust. ways. would mid-single gets that Wilderness. our just mean think We different for a of to increased question couponing.

and the in in the category turning the some Cheerios quarter cereal Cheerios, launched And on something new as continued they that halved a top business losses has And see momentum. little ] trust bit [ -- different. want we've the of we in business cereal, kind Fruty because and consumers that

so And for economically feel those create place. pack can't getting probably underappreciated the one it's whether a when sizes whether especially, say, There stressed. messaging away little right to consumers or do or consumers. I couponing, thing would afford think it's and to products of But they food. in value ways advertising I new are throw whether it's the a is lot bit

because in news brands on the pets right we the And portfolio, it quarter quarter lot that bring family quarter. ] our the items, of about that's in in to baking because of [ second for our second your treating a is home have right place. But we of that a if that and majority have in the our lot seasonal sure to you the of a so have is to I place point, about better going the they I have we actually kind feel even making in relevant bit their and items, What far. think good second seasonal and where something starts is come brands messages love, the feel so package even takes little

news on And feel some we're see a because we'll quarter some Wilderness. in Blue with like we've seeing so receptivity combine channel from the We and you second in our Buffalo got more improvements coming. that pet step specialty good up

Barclays. question from next from comes Our Andrew Lazar

last mentioned guess you obviously, progress of start competitiveness maybe see year. for position of as volume playing things across share a the year. bit around and how outcome Is go Jeff, this that the gradual from of anticipate price/mix about, you an continued segment expectation of your I for you you Or stage? sort NAR at you this sort for market out hold year? sort share does being of would I contribution more equal make the a optimistic. And to through in and still sort overly still the perhaps expectation talked bit think Kofi, a the then quarter,

NAR toughest get. probably that, still quarter. that a And there's sales our throughout share to the we quarter bit to Buffalo. we It's I the which Yes. quarter gets Thanks, Blue first progress was easier for -- expected We work those a competitiveness first [indiscernible]. of we of certainly think I our the the true day a talked on to intend Andrew. anticipated is of do we news sales about the to fully comp as especially in say competitiveness both standpoint. in is of would great for improved I And but for year, from mean to theme our That year. kind out but continued hit as gains market played and segments. improve do, our true and quite the most starts the also brands, second our biggest lot QX of

My is I given played up going in as would we have QX that that out better And at thought. as Andrew, first I'm the keep year seems getting end expect, wanted year. with a introduced starting where we quarter we'll to. our belief So of predict would we say, to progresses, not we It's the the the to long And I the year. end that's way what competitiveness. news landing be the

And I would second -- question.

we is off and and we're through through towards focused our as expecting for and year of be equal we on and mark move the to price continue us year expect our work full gradual the broadly the expectations nothing volume to our point way contributions year, sales the and total guidance. mix improvement tells as from that We

Michael Piper Lavery comes question from next Our Sandler. from

the about what improvement, the an one improved been talked service drivers you call maybe map kind cited or has levels. timing you continued of improvement still When of has there? and issue you road is some market that out customer for the Can share where of

Yes.

customer improved changes business, particular, in say, the service business, been were aggregate, gradually are in the seen have service pre-pandemic. so in have by, I aided close most of our service in levels. bigger portfolio, they where moving levels acutely we So to our across foodservice would pet But those

It's category? So it's not that? for improvement any just broad one particular

and our refrigerated supply with formats. across the and obviously, improved both service portfolio, our Say across specifically levels pet our all external and our portfolio has reliability internal chain foodservice

as Do kind if you had That's sense -- us seeing pet, little -- that you Okay. And Can when quarter we expected. said on and of the are for you're of ahead on give specifically what there? wilderness what's idea moderating. an have more maybe growth we helpful. how progression. you be looking of expected bit It's it's a be and should even is should you actual the declines a

X%. It's fair sales good a a question. in by on mean Yes. were particularly improvement our we very -- I [indiscernible], [indiscernible] QX down line. I pleased was the on

forget. we I and [indiscernible] share, Wilderness market pet share. business, gained [indiscernible] actually food lost Tastefuls I And our and actually and think protection light X.X% dry

all goal. is the And on It's XX%. a can improvement, not did not that it we improve Wilderness share want. but clearly we if improved, even the So gained way [indiscernible] good

turned advertising I So the But think relative And that the the direction little the would the gains. come Wilderness which the the We end things second [indiscernible] in going quarter. in will also on on second feeding in pets. I a those the to say, But other We us. to advertising, new momentum. -- there's to that We've help of the quarter, more I'm up of take thought the of nearest the just a our on while shows advertising couple on seen [indiscernible] addition, protein on starting at quarter, competitor. first pleased really cycle there's specifically. we're Wilderness so

we're is first reintroducing The grain-free products. that some

free products heading back had the as a ago. Wilderness grain So we to we some few have portfolio years

better. this sizes dog to The sizes do some smaller and in bags we're environment, current is other again that food making of tend smaller adjusting economic

customers we're in our way feature that So from of couple pet to we specialty a commitments reintroducing those. And store. improve have Wilderness a they the

of in our we're so retail with hit working all the things second quarter. those customers, And

on into we expectation that Pet see quarter. continue what my see improvement So we'll that and yields. And to is the second Wilderness

to improvement Wilderness. our going but the for to number in ], give second and looking improve quarter much going for business not I'm pet [ So it's how a in

Next question from BNP Gumport from Paribas. Max comes

your candidates. to attractive repurchases discussed Jeff, you last quarter, couldn't return in acquisition to you the excess shareholders of find share intent if form cash

of intent suggested there there? proceeds M&A might yogurt think attractive out initial not an I read the So all the the [indiscernible] divestiture be from

It you focusing in bit in more seems a pointed today's commentary that about prepared like remarks, nature. deals more are had bolt-on on

$X that transaction billion to size $X range. billion in Specifically

seeing in provide Buffalo? helps the finding to the next for on curious that why and than the that current you next you're what has business I'm the you're Blue think So on the focus [indiscernible] returning proceeds environment [indiscernible] clarity rather made shareholders. But reason more

Yes.

we that that. acquisition we back So didn't exactly really And any appreciate find year, the which was I thanks of kind for say fiscal in we did what first, candidates is and question. last the I said, like. I up

the returned in of repurchases. And share shareholders form to money so we

in year, is as what of this that a the in similar at environment, this what we able we this So for ]. we're haven't make businesses did in with growth, these be mean of -- it like for look And place. would proceeds. what we our investors in don't the in we we notion. But to had a this to we actually We and of the now, for done in the know while, to it with still is us, did American the for in we near that we're We at a we we're would more shares what bit along Annie's do certainly, mean, been we Tyson I period could could a [ so us -- I know might is of terms those fiscal -- term to the mean, repurchase And kinds but all similar is seems we following if going with it because done done really on but sheet to of important yogurt with the great long sure specific already -- do bolt-ons. available so probably our kind bigger enhance [ we things and it that bolt came and I [ the own. that year. When balance we this same we said our you've I a of last acquisitions our to focus you ]. who bolt-on we did now North to intend have time. and our assets what And ]. see these been little to I to right are see bolted Tyson our felt marketplace know right, that it is those something in availability [ do it got more really divestiture ] you're And growth, importantly, it maybe, that what business on smaller-sized comes enhancing of see release, time. entertain We've

able the more us got both on to time. add specific little we have sheet bit this because the focus time, near of the a repurchase term same do well so and we balance those do that's and the the to it coming to And yogurt looks our on over divestiture to as looks be bolt-on at And things as acquisitions way only be shares.

month it's took week refrigerated dough, like snacks, like I And bit [ too wondering a have then product there the sound investors suggest improving would just in is snack with if progress XQ. or the for clearly street declaring step a is news far this which was be big just you're that a first realize bars, there regard you backwards. which year. data, much cereal, from of and a volatility, of could on recognize competitiveness, nice I to coming see deal last on be quarter. a a It yet. I'm your And focus but step you in ] making backwards. victory to does later quad will It in front the so of you think more

should data? all latest of So just curious you how you reading think be that quad-week

Yes.

our progress. in our all absolute QX confident get didn't in declared, saw understand out So that environment and but given in victory and the we're back and There's there which job up way of left we're horizon we played share down improved is your what growth there's we macro right. say of mean to get a way mean the being of competitiveness, is make I on is one I we first we commentary the the on quarter that undone, the to can see the that terms question kind last both I we growth. goal. But terms confident would coming initiatives. no not

it's not I'm [ angst period, of I another. ] you period, X-week last due timing X-week investors to shift entirely the one to but the Over over [indiscernible] sure merchandising from tell the last of period can

a really that timing. it's a shifted of programs in merchandising So couple really big

the you about last much am not [indiscernible] I scanner see what So the month. worried in for data

Our comes next question Dickerson from Jefferies. Rob from

is a discussion lot in that there but remarks the But selling the right also of value-based time, pricing some maybe around there's the pack some I'm through, and there this channel Great. just on half right there's clearly, also, a we're guess, those kind earlier, price/mix I what at QX of could curious and et year. benefit you the at kind on to consumer, I and promotional guess of a cetera. couponing on pricing the comment out as prepared spoke we bit think same scenario by back be price, ships. doing right size, like the touched the of a little needs year? I is of that I positive but such then price/mix mean, America Like then guess, plays that North actually

a So year. sense price/mix just outlook the the kind get trying of of to for

the entirely -- and less then it's kind of business at quarter. And in our in we was contribution our for look our rate the an X%. year was from equal in you let's equal kind rate you at categories what the saw first you where happened down that's year what's more out and Yes, from kind And an mix. look price/mix -- contribution kind see playing at of see or It -- if volume what mix of look or this categories. our and a we from of

mix. than thing hard And a really to predict. fact, In more mix is entirely

to inflation. what don't we the the have have savings categories, plans we mean, comment we that input to see as I offset X%. for is is look of our a But very us -- certainly as with pleased rational ahead, think productivity can look promotion mean, I'm -- But moderated. look is And or categories ahead. pricing see still HMM on has so what that that. X% I little and that it's we really can inflation we offset we still see that rational that and ahead, remained important I As note year for forecast our we we And bit -- it's cost, and

so And growth. job our drive now is to

it coming at And kind we we'll the with price far look so as out what the played would. quarters, it's exactly but as thought see so we year of happens mix, this

our mix we We to predict. forward. could in see work But Jeff's improvement to as some point, modest is it way hard

bolt-on size prepared to kind question, Pet. this of right? just again, scale, Is international Fair billion of transaction like leaning on $X would little kind side, M&A to average. kind then more enough. $X bit you attraction, to up And Simple you a spoke where remarks, into the maybe of on build go, billion

Just be any color fabulous. you would could provide

I'll as provide we categories, not say a your but win, where maybe would in to are things that our specifically, on large existing going a have degree, it's our little I the bit to of to of colorful color, bolt businesses. as right global kind be -- which a categories

to And of or the be it can international. in done those pet so would more you pet we've win we've we expect at have could see in you bolt-on to And and priority where look It food what domestic. at service. or look we done and business snacking be I what or a where acquisition right growth.

we way. get have that synergies places I'm the a But we where will get the of advantage, little level really, competitive So look. we along not continue where are maybe see into Those a going detail. where to to growth,

of Bank America. from comes Our from Spillane next question Bryan

we've kind little trends. for of and two I me. So bit -- One, about progress a think talked just

start kind of together could just begin of we -- Kofi, tie the a looking at back-half of year, to at the maybe were loaded plan you more I with. So think

will got think, are phasing, So And of the any I as we've the kind comps then at got second color give to somewhat just of us helpful. we're -- I terms pet, look in in looking XQ? it but quarter, a be know you similar would can wonky I follow-up.

So to into as trend off see we step QX. this continued expect improvement we of would

a characterize be obviously and more gradual top half. expecting phased the I the QX into the would to back the we think is fair as improvement profit year of bit half line it year work the to our way little back in then

on there stranded as the and my Okay. in dilutive? time, incorporated underneath the is then overhead Kofi, I just, it isn't through the actually then is And initially, follow-up, it work dilution, question but and divestiture you over just the overhead that? guess dilutive is

Yes.

So right. our you're expectation -- exactly

Our time. or a expect the overhead overhead cost for to We of it be get period and us there less that of is expectation that is that period X stranded structure. take about that us will years stranded to out addressed would

that the So drag is of in dilution math. part the

should there TSAs aware Are we also any Okay. of? be

there the and as agreements Yes, will sale of both TSAs the [indiscernible] part [indiscernible]. with of terms be -- of

Okay, but not very material?

consider accretion. and I dilution -- would They them Yes. the material to not

Leah from next Goldman comes question Jordan Sachs. Our from

any of thinking year? spend your how how you're messaging out call about just there? And the that view shift I has on in a volume Or throughout lift. versus your baseline wanted this demand lift to the across the follow food-at-home categories? up Is notable more surprises current promoting you're to update expected the to environment, supporting timing the discussion your on any including that widespread the trends on impacted

mean, from food bit Yes a a the shift. look as to I at-home, little shift to a little like XX%. -- a first, of it's it's bit at-home XX% we of from at of away-from-home

we that overplay So that sure highlight and it. just don't to make

what the is places so that I at we and trend, the is at [ like importantly, what noncommercial versus K-XX second, prior traffic see actually a restaurants The traffic the ] is over-index. within say, is we that, And in colleges growth see year, at health down places bit broad-based. where pre-pandemic growth the schools actually And see it little or university care, call we neither would or like level. which we but are we outlets,

lower than index, it this space, in it's a have business. base we noncommercial our is But service in before. food off So was we of growth was growth why that the over growth which which much confidence

beverage. on In impact terms of actually across broad-based quite been business, food and our the retail it's

really change what because, it versus significantly So year one we hasn't impacted or ago. saw the again, other a point category a it's X

mean, think, of ] that -- will I big had, for we spend. consistent I or QX be about media seasonal [indiscernible] have pretty [ to saw investment on QX. the that up that Jeff talked behind And this in plans Pillsbury have, for initiatives brands more increase it's [indiscernible]. even and We whether actually we our some year. in

sure making brands time that we're so of supporting through period And important. our is

you'll the here an the of in even a half. quarter, will and So see second support in in continue that bit back more increase brand

Okay. I we've then think my for Great. touched on international follow-up, And don't yet.

comment could on throughout be challenged. more seems in you sequentially? last from could key on well. quarter. trends Just still updated we color seeing region And things it as What that sounds I trending any if region? in then are views provide And How as go that improved that on has mean that if to year? the you Brazil drivers mean China like I were segment? the

really -- was pleased pleased really with our I I was On business, of all, first European Sure. results. international our

I'll that, is European, it a but and in mention because strong that myself. We some it's the contributor. tee question good our business, up didn't a Australian business [ answer did see growth You profit ] is which

utilize and place And the saw -- the didn't probably one strategic you're way top of in years. quite fully few line much right, in our in the first tools Europe. In from the before. We we so improved last we're lot -- in quarter place a is -- management on over before, way. where a inflation this the bit one when a revenue we've talked right Brazil I like competing it's Brazil, about year we grew the and

the places adjust. seeing to where one We're adjusted of benefits made pricing we've the And We've we in of Brazil. the that. It's adjustments. needed so

much Brazil. The within kind have dumplings doing for [indiscernible] in with performed pleased even through retail [indiscernible] we how So the the Häagen-Dazs shop we market split. and businesses, is about also the is us Häagen-Dazs pulling doing really do at down. the pretty heard is stores like equally shops, seen traffic China. consumers And talk you've e-commerce China, well. probably when two of challenge back fine. in It's shop And others and and traffic down. And Häagen-Dazs, they

we And so rest year, hit the that our our not of like the the hit -- while we at would guidance year. as on banking to that look trend for to us improve, we're improving for to trend

and And shops. more so not is And area are most shops The as I'm of a channel an pretty with part. we high. margins on the look the it. challenging China, international, really our actually execution on challenge one really It macroeconomic at that's are is costs the but pleased of with fixed it's low,

an profitability. impact So it on has

on near little counting the something bit economics We're we'll with a China. have the work the it's not we're seeing to where better year. to in term. Services, that's So to get throughout in continue

from from Our Cowen. Robert question comes next TD Moskow

you. Rob, we can't sound. hear tiny a Sorry little heard we just

I'm sorry.

refrigerated and buyer, scale is regarding very there's implications buyers. separate? any it's cereal require there to alter or retailer there's are Okay. an cross-category you And integrated a yogurt yogurt? There's approach and Foods insights? it strategy To does with like operate divestiture different that the does extent And the regard? just Or currently cereal Morning what a of consumer in buyer, across your to your

in the when I cereal. much is comes to more There's the a lot and morning participate it Rob, strategy latter. answer, [indiscernible] a occasion. both not The they mean yogurt category of

of that good as good combination taste kind [indiscernible] years. and So for well as that of things a

common not a as there's there's broader -- There's So our implication have insights. really not But retailers. that on with no implication in they well. broader

particular embedded We kind we retail unit, have North America also in in that insights have spans. but insights of operating that

frankly, divestiture. standpoint. see a that it's manufacturing there business And from I cereal on separable. a easily So from an from And relatively standpoint that's impact that wouldn't

Right.

Okay. And a follow-up.

And flat plan categories XX are the is and your the getting of you X for better. other Can said X? those in or the accelerating it dough? X? on You growth other snacks comment Like what's

all rather than a the [indiscernible] say I I is of would biggest the one would Yes, world and that X, to around say Dell snacks. you that taking

kind far. are using have of by And we refrigerated I those coming second quarter biggest in X some phenomenal with so the think And the up [indiscernible]. advertising dough,

product in that of products. news have category some new launching We lots

would quarter. We'll And our see anticipate share. get second to better dough the business so I in about

market Our or is dough share in so. XX% already about

So the just grow is get key dough to to really to it.

the which been And that our I confidence high capacity see constrained. not reminder snacks, then so remember We'll but capacity I bringing business, look [indiscernible] yield dough good on the our has have additional degree of particularly in this, we in our you as may feel forward. what business, plans quarter about. And a second fruit starting for a we're -- for our

new the products, in [indiscernible] also second quarter. especially good some have coming really in We

business. would I move us improvement business to quarter. see we expect So as snacks move will improvement year, It in throughout would expect through where as happen to a some But that's our in the we [indiscernible] year. second see the I the

are them, of we good X need but like, a made are feel ones, a to continue those one lot the we where okay, on the those Rob, to X So we make biggest progress. progress

today John Mizuho Baumgartner last Securities. will Our from come question from

the come in comments I to larger home on America the competitiveness eating North and and wanted back to environment.

importance the low desert appeal at gaps, certain categories differently business to in Taco the recent a , closing current brands against And innovation relative do those Betty The shell pack or Totino's Are Looking its ]. How that breakfast, its state? you marketing potential? gap consumption. still to maybe the where consumption this the significant? seems assess ] your changes frequency of to [ portfolio or even innovation, differently relative the bit frequency in size between there more sugar is Crocker of at [ making what's the to in it point relative

happen Yes. new which about with -- of good. times, it's rest And messaging. all it It It I growth all innovation lot the is sizes. we in think happen people this pack through focus and you marketing those of about what it household XX% of kind business really happen can ways innovation. is broadly, and innovation, in product But think is on our product the When of year can we new like just can our through It identify, the penetration. can through our by product it things. A new profitability the the happen will think and way, drives be X% -- innovation.

innovation category key relevant the And for so so will I by we -- is category. sure that's us have to make

And sometimes that's messaging.

sometimes Sometimes right and innovation. new as sizes is times other that's the product pack having in place at news,

so I've I'm feel Fortunately, that risk new second ]brands. before, broadly product we it [ at the landing myself, maybe good the $X as innovation, I just our quarter, but we had repeating good billion look in of said

of We also advertising. levels have stepped up

products some marketplace. coming Totino's we've and You'll see in in the well -- think, here launched El that advertising on I second soups the some Paso Old new from starting quarter as exciting as Old Paso El new

like biscuits as our on news core [ ]. flake year well As

brands, to better. And Buffalo, ideas not have I go a So which, tend retail. we innovation is billion way, everything category by Blue think on but do think is big differentially good $X it key. I I really big brand. on category, on And -- mentioned When America the North good that's have ideas you brands, the by and you I just includes just

Okay.

out you. have coming we morning. we over with everyone's Over up next month. the of again months. this and forward with Take today, I and reach appreciate care. speaking to we to any Julian. questions through all catching forward I think the course look the engagement, that's Thanks, look time you to Please

call. you conference for Thank your This concludes today's participation.

may disconnect. now You