What to expect when General Mills (GIS) reports Q1 2025 earnings results

Shares of General Mills, Inc. (NYSE: GIS) stayed green on Monday. The stock has gained over 12% in the past three months. The branded foods company is scheduled to report its first quarter 2025 earnings results on Wednesday, September 18, before market open. Here’s a look at what to expect from the earnings report:

Revenue

Analysts are projecting revenue of $4.8 billion for General Mills for the first quarter of 2025. This compares to net sales of $4.9 billion reported in the same period last year. In the fourth quarter of 2024, net sales decreased 6% year-over-year to $4.7 billion.

Earnings

The consensus estimate for EPS in Q1 2025 is $1.05. This compares to adjusted EPS of $1.09 reported in Q1 2024. In Q4 2024, adjusted EPS decreased 10% YoY in constant currency to $1.01.

Points to note

General Mills continues to face a dynamic consumer environment. Consumers are seeking maximum value amid inflationary pressures, which is anticipated to affect the products they buy and the channels they shop. These trends could have an impact on the top line in Q1.

Consumers are looking for healthy, tasty and convenient options while also trying to avoid wastage in a tough economic environment. General Mills has been working to meet these needs through pricing, product innovation and appropriate packet sizes.

Inflation is also expected to have an impact on input costs. GIS is forecasting input cost inflation of 3-4% of cost of goods sold in fiscal year 2025, driven mainly by the impact of labor inflation within its sourcing, manufacturing, and logistics costs.

Higher costs are likely to put pressure on margins. Last quarter, adjusted gross margin fell 10 basis points to 34.9%.

Last quarter, General Mills recorded sales declines across all its segments except Foodservice. Sales in the Retail and Pet segments were impacted by lower volumes and unfavorable price realization. The company remains optimistic about long-term growth in the Pet segment due to the pet humanization trend. It is providing new product offerings at optimal price points to improve value for pet owners. However, near-term pressures are likely to impact segment results in Q1.