General Mills Reports Fiscal 2027 First-quarter Results and Reaffirms Full-year
September 23, 2026 General Mills Reports Fiscal 2027 First-quarter Results and Reaffirms Full-year Outlook
t, driven largely by a $1 billion gain on the yogurt divestiture a year ago; adjusted operat ing profit of $634 million was down 11 percent in constant currency
1 Please see Note 7 to the Consolidated Financial Statements below for reconciliation of this and other non-GAAP measures used in this release.
MIN NEAPOLIS (September 23, 2026) – General Mills, Inc. (NYSE: GIS) today reported results for its first quarter ended August 30, 2026.
“We are off to an encouraging start in fiscal 2027, driving improved topline performance with stronger product innovation and renovation focused on the benefits consumers are looking for today,” said General Mills Chairman and Chief Executive Officer Jeff Harmening. “We are also executing with discipline in a volatile environment, including delivering industry-leading cost savings through our Holistic Margin Management program and our global Transformation initiative. Based on our progress and the actions underway, we remain confident in our ability to deliver our fiscal 2027 guidance.”
General Mills is investing in its brands to restore profitable organic net sales growth, with initiatives that touch all elements of the company’s Remarkable Experience Framework: product, packaging, brand communication, omnichannel execution, and consumer value. With stronger and more remarkable brands, the company is better positioned to deliver sustainable, profitable growth and value creation over the long term.
were down 3 percent to $4.4 billion , driven by the impact of the U.S. yogurt divest iture . Organic net sales essentially matched year-ago levels.
was unchanged at 33.9 percent of net sales, with higher input costs offset by favorable mark-to-market effects and favorable net price realization and mix. Adjusted gross margin was down 90 basis points to 33.3 percent of net sales, driven by higher input costs, partially offset by favorable net price realization and mix.
of $634 million was down 63 percent, driven primarily by a $1 billion gain on the yogurt divestiture a year ago and lower gross profit dollars in fiscal 2027.
of 14.4 percent was down 2,380 basis points. Adjusted operating profit of $634 million was down 11 percent in constant currency, driven by higher input costs and lower volume, partially offset by favorable net price realization and mix. Adjusted operatin g profit margi n was down 130 basis po ints to 14.4 percent.
was down 67 percent to $0.74, driven primarily by lower operating profit. Adjusted diluted EPS of $0.75 was down 13 percent in constant currency, driven primarily by lower adjusted operating profit and higher net interest expense.
• The divestiture of the U.S. Yogurt business in the first quarter of fiscal 2026 was the only significant transaction impacting the comparability of financial results between fiscal 2026 and fiscal 2027. The Brazil divestiture was completed on September 2, 2026, subsequent to the end of the first quarter of fiscal 2027.
Components of Fiscal 2027 Reported Net Sales Growth First Quarter Volume Price/Mix Foreign Reported Exchange Net Sales North America Retail (9) pts 2 pts -- (7)% North America Pet (6) pts 7 pts -- Flat North America Foodservice (3) pts 4 pts -- 1% International 6 pts (3) pts 1 pt 4% Total (4) pts 1 pt -- (3)%
Compon… of Fiscal 2027 Organic Net Sales Growth First Organic Organic Organic Foreign Acquisi… Report… Quarter Volume Price/M… Net Exchan… & Net Sales Divesti… Sales North America (2) pts (1) pt (3)% -- (4) pts (7)% Retail North America (6) pts 7 pts Flat -- -- Flat Pet North America (1) pt 5 pts 4% -- (2) pts 1% Foodse… Intern… 6 pts (3) pts 4% 1 pt -- 4% Total (1) pt -- Flat -- (3) pts (3)%
Fiscal 2027 Segment Operating Profit Growth First Quarter % Change as Reported % Change in Constant Currency North America Retail (15)% (15)% North America Pet (12)% (12)% North America 12% 12% Foodservice International 14% 15% Total (10)% (10)%
First-quarter net sales for General Mills’ North America Retail segm ent were down 7 percent to $2.4 billi o n, including a 4-point headwind from the U.S. Yogurt divestiture. Net s a les were down double digits for the Big G Cereal & Canada operating unit, including the impact of the yogurt divestiture, down mid- single digits for U.S. Snacks, and flat for U.S. M eals & Baking Solutions. Organic net sale s were down 3 percent and lagged Nielsen-measured retail sales by approximately 1 point, as expected, driven by changes in retailer inventory. The segment drove a 2-point sequential improvement in retail sales growth in the quarter, with dollar share trends strengthening in the majority of its priority categories. Segme nt operating profit of $479 million was down 15 percent as reported and in constant currency, including the impact of the yogurt divestiture, due primarily to lower volume and higher input costs, partially offset by favorable net price realization and mix and lower selling, general, and administrative (SG&A) expenses.
First-quarter net sales for the North America Pet segment of $613 million essentially matched year-ago levels. Net sales were up double digits for cat food, up low-single digits for pet treats, and down high-single digits for dog food. Organic net sal es were flat and outpaced all-chann el retail sales growth by approximately 1 point , due to an extra month of results for the Whitebridge Pet Brands business as its calendar was aligned to the company’s August fiscal quarter end. Changes in retailer inventory were a modest headwind to the segment’s first-quarter results. The company continues to expect retailer inventory will be a low-single-digit headwind to full-year organic net sales results for North America Pet, including the impact of changes in customer mix. First-quarter segment operating profit of $100 million was down 12 percent as reported and in constant currency, driven by higher input costs, lower volume, and higher SG&A expenses, partially offset by favorable net price realization and mix.
First-quarter net sales for the North America Foodservice segment were up 1 pe rce nt to $523 mil lion, includin g a 2-point hea dwind from the U.S. Yogurt divestiture. Organic net sales were up 4 percent, led by growth on cereal and frozen meals. The segment delivered another quarter of strong competitive performance, holding or gaining market share across 100 percent of its priority businesses. Seg ment operating profit was up 12 percent to $79 million, d riven b y favorable net price realization and mix, partially offset by higher input costs. 2 International Segment
First-quarter net sales for the Inte rnational segment increased 4 percent to $794 million, including a 1-point benefit from foreign currency exchange. Organic net sales we re up 4 percent, dr i ven by growth in distributor markets, India, and China. S egment operating pr ofit of $75 million was up 14 percent as repor ted and up 15 percent in constant currency, driven by higher volume and lower input costs, partially offs et by unfavorable net price realization and mix and a double-digit increase in media investment.
First-quarter constant-currency ne t sales were down 4 percent for Cer eal Partners Worldwide (CPW) an d down 3 per cent for Häagen-Dazs Japan (HDJ). Combined after-tax earnings from joint ven tures totaled $19 million in the qua rter compared to $7 million in the prior year, driven primarily by the company’s share of impairment charges and transaction costs related to certain assets held for sale at CPW in the prior year.
First-quarter unallocated corporate items totale d $78 million n et expense in fiscal 2027 compar ed to $126 million net expense a year ago (please see Note 4 below for more information on these expenses) . Excluding mark-to-market valuation effects and other items affecting comparability, unallocated corporate ite ms totaled $100 million net expense this year compared to $103 million net expense a year ago.
Divestitures gain totaled $1.05 billion in the first quarter of fiscal 2026, primarily related to the sale of the U.S. yogurt business (please see Note 2 below for more information on this transaction) . Restructuring, transformation, impairment, and other exit costs totaled $21 million in the first quarter compared to $16 million a year ago (please see Note 3 below for more information on these charges) .
Net interest ex pense totaled $142 million in the first quarter compared to $133 million a year ago, driven primarily by higher interest rates. The effective tax rate in the quarter was 24.5 percent compared to 25.6 percent last year (please see Note 6 below for more informati on on our effective tax rate) . The first- quarter adjusted effective tax rate was 23.4 percent compared to 24.1 percent a year ago, driven pri marily by favorable earnings mix by jurisdiction in fiscal 2027, partially offset by certain nonrecurring discrete tax costs in fiscal 2027.
Cash provided by operating activities to taled $298 million in the first quarter compared to $397 million a year ago, driven primarily by lower accrued federal income taxes payable, including tax expense associated with the sale of our U.S. yogurt business in fiscal 2026. This was partially offset by an increase in net earnings, excluding the pretax gain on the divestiture in fiscal 2026. C apital investments total ed $90 million compared to $110 million a year ago. Dividends paid totaled $330 million compared to $331 million a year ago. The company did not repurchase shares in the first quarter of fiscal 2027 compared to $500 million in share repurchases a year ago. Average diluted shares outstanding in the quarter decreased 1 percent to 538 million.
General Mills’ top priority is to restore profitable organic net sales growth over the long term by making its brands resonate more deeply with consumers, leveraging all elements of its Remarkable Experience Framework. For fiscal 2027, the company expects category growth to be consistent with recent trends and below its long-term historical growth rate, driven by a continued challenging consumer backdrop. With its base price investment actions completed in fiscal 2026, the company is shifting its focus in fiscal 2027 to product innovation and renovation news centered on the benefits that matter most to today’s consumers, including better-for-you benefits like protein and fiber, bold flavors, fun, and indulgence, as well as the continued trend in pet humanization. This approach is expected to further strengthen its brands and drive improved organic net sales performance in fiscal 2027.
On the bottom line, General Mills continues to expect to generate at least $750 million in savings from its Holistic Margin Management productivity program, its global transformation initiative, and other cost savings actions in fiscal 2027, which are expected to offset input cost inflation and brand investments. In addition to those factors, the company continues to expect headwinds of approximately 9 points on operating profit and 11 points on EPS in fiscal 2027 from lapping the 53rd week in fiscal 2026, normalizing corporate incentive expense, and the impact of fiscal 2026 divestitures.
Based on the above assumptions, General Mills reaffirmed its full-year financial targets² for fiscal 2027:
is expected to be approximately 95 percent of adjusted after-tax earnings. 3 The net impact of divestitures, foreign currency exchange, and the 53rd week is now expected to reduce full-year fiscal 2027 reported net sales growth by approximately 4 percent, driven primarily by the 53rd week comparison and the Brazil divestiture. Foreign currency exchange is not expected to have a material impact on adjusted operating profit growth or adjusted diluted EPS growth in fiscal 2027.
2 Financial targets are provided on a non-GAAP basis because certain information necessary to calculate comparable GAAP measures is not available. Please see Note 7 to the Consolidated Financial Statements below for discussion of the unavailable information.
General Mills will issue pre-recorded management remarks today, September 23, 2026, at approximately 6:30 a.m. Central time (7:30 a.m. Eastern time) and will hold a live, webcasted question-and-answer session beginning at 8:00 a.m. Central time (9:00 a.m. Eastern time). The pre-recorded remarks and the webcast will be made available at www.generalmills.com/investors .
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our current expectations and assumptions. These forward-looking statements, including the statements under the caption “Fiscal 2027 Outlook,” and statements made by Mr. Harmening, are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. In particular, our predictions about future net sales and earnings could be affected by a variety of factors, including: imposed and threatened tariffs by the United States and its trading partners; 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, tariffs, 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, transformation 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 tariffs; and political unrest in foreign markets and economic uncertainty due to terrorism or war. The Company undertakes no obligation to publicly revise any forward-looking statement to reflect any future events or circumstances. # # #
(a) See Note 7 for a reconciliation of these measures not defined by generally accepted accounting principles (GAAP).
Quarter Ended Aug. 30, 2026 Aug. 24, 2025 ────────────────────────────────────────────────────────────────────────────── Cash Flows - Operating Activities Net earnings, including earnings (loss) $ 398.1 $ 1,204.0 attributable to noncontrolling interests Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and 139.8 138.7 amortization After-tax earnings from -18.9 -6.8 joint ventures Distributions of earnings from joint 10.9 26.9 ventures Stock-based compensation 21.8 15.1 Deferred income taxes -18.0 10.0 Pension and other postretirement benefit -6.6 -5.2 plan contributions Pension and other postretirement benefit -3.0 -6.7 plan costs Divestitures gain — -1,054.4 Restructuring, transformation, 21.0 -2.7 impairment, and other exit costs Changes in current assets and liabilities, excluding the effects of -251.5 58.8 acquisitions and divestitures Other, net 4.2 19.3 Net cash provided by operating 297.8 397.0 activities Cash Flows - Investing Activities Purchases of land, buildings, and -90.5 -109.5 equipment Proceeds from — 1,803.4 divestitures Investments in -25.4 — affiliates, net Proceeds from disposal of land, — 2.8 buildings, and equipment Other, net — -1.9 Net cash (used) provided by investing -115.9 1,694.8 activities Cash Flows - Financing Activities Change in notes payable 132.7 -654.8 Proceeds from common stock issued on — 0.2 exercised options Purchases of common — -500.0 stock for treasury Dividends paid -330.5 -330.9 Other, net -11.8 -21.7 Net cash used by -209.6 -1,507.2 financing activities Effect of exchange rate changes on cash -0.2 4.4 and cash equivalents (Decrease) increase in cash and cash -27.9 589.0 equivalents Cash and cash equivalents - beginning of year (includes $37.9 491.7 363.9 million of cash classified as held for sale as of May 31, 2026) Cash and cash equivalents - end of period (includes $30.7 million of cash $ 463.8 $ 952.9 classified as held for sale as of Aug. 30, 2026) Cash Flows from changes in current assets and liabilities, excluding the effects of acquisitions and divestitures: Receivables $ -58.5 $ 0.9 Inventories -261.1 -135.2 Prepaid expenses and other current 90.4 36.6 assets Accounts payable -32.1 -252.5 Other current 9.8 409.0 liabilities Changes in current assets and $ -251.5 $ 58.8 liabilities
(Unaudited) (1) 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 for annual and interim financial information. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal recurring nature.
(2) During the fourth quarter of fiscal 2026, we entered into a definitive agreement to sell our business in Brazil to Café Três Corações S.A. (3corações) for a base price of R$800 million, subject to certain specified deductions and customary post-closing adjustments. As a result, we have classified relevant assets and liabilities (the disposal group) associated with our Brazil business as held for sale in our Consolidated Balance Sheets as of August 30, 2026, and May 31, 2026. In the fourth quarter of fiscal 2026, upon initial classification of the disposal group as held for sale, we recorded a $1,032 million non-cash pre-tax loss to value the disposal group at the lower of its carrying value or fair value less costs to sell based on estimated net proceeds, which was based on Level 2 inputs in the fair value hierarchy and included the impact of accumulated foreign currency translation losses that will be reclassified to earnings upon sale. In the first quarter of fiscal 2027, we recorded an additional non-cash pre-tax loss of $24 million based on changes to the carrying value of the disposal group, including the change in accumulated foreign currency translation losses, and a revised estimate of net proceeds. We recorded the loss in restructuring, transformation, impairment, and other exit costs in our Consolidated Statements of Earnings, and adjusted the reserve for assets held for sale and accrual for the loss in excess of assets held for sale accordingly.
On September 2, 2026, subsequent to the end of the first quarter of fiscal 2027, we completed the sale of our business in Brazil to 3corações. We expect to record certain customary post-closing sale price adjustments in the second quarter of fiscal 2027.
During the first quarter of fiscal 2026, we completed the sale of our United States yogurt business to Groupe Lactalis S.A. and recorded a pre-tax gain of $1,046 million.
During the third quarter of fiscal 2025, we completed the sale of our Canada yogurt business to Sodiaal International and recorded a pre-tax gain of $96 million. In the first quarter of fiscal 2026, we recorded a sale price adjustment that resulted in an $8 million increase to the pre-tax gain.
(3) Restructuring, transformation, and impairment charges are recorded in our Consolidated Statement of Earnings as follows:
In the first quarter of fiscal 2027, we recorded an additional $24 million non- cash pre-tax valuation loss related to the planned divestiture of our Brazil business. Please see Note 2 for additional information.
In the first quarter of fiscal 2027, we did not undertake any new restructuring actions or transformation actions. We recorded $18 million of restructuring and transformation charges in the first quarter of fiscal 2026 related to actions previously announced. We expect these actions to be completed by the end of fiscal 2030.
(4) Unallocated corporate expenses totaled $78 million in the first quarter of fiscal 2027, compared to $126 million in the same period in fiscal 2026. In the first quarter of fiscal 2027, we recorded a $30 million net decrease in expense related to the mark-to-market valuation of certain commodity positions and grain inventories, compared to an $8 million net increase in expense in the same period last year. Additionally, in the first quarter of fiscal 2027, we recorded $4 million of transaction costs primarily related to the definitive agreement to sell our Brazil business, compared to $12 million of transaction costs related to the sale of our United States yogurt business in the same period last year. 9 (5) Basic and diluted earnings per share (EPS) were calculated as follows:
In Millions, Except per Aug. 24, Share Data Quarter Ended Aug. 30, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net earnings attributable $ 397.0 $ 1,204.2 to General Mills Average number of common 537.4 541.3 shares – basic EPS Incremental share effect from: (a) Stock — 0.2 options Restricted stock units and 0.5 1.0 performance share units Average number of common 537.9 542.5 shares – diluted EPS Earnings per share – $ 0.74 $ 2.22 basic Earnings per share – $ 0.74 $ 2.22 diluted
(a) Incremental shares from stock options, restricted stock units, and performance share units are computed by the treasury stock method.
(6) The effective tax rate for the first quarter of fiscal 2027 was 24.5 percent compared to 25.6 percent for the first quarter of fiscal 2026. The 1.1 percentage point decrease was primarily due to certain unfavorable tax components related to the divestiture of our United States yogurt business in fiscal 2026 and favorable earnings mix by jurisdiction in fiscal 2027, partially offset by certain nonrecurring discrete tax costs in fiscal 2027. Our effective tax rate excluding certain items affecting comparability was 23.4 percent in the first quarter of fiscal 2027, compared to 24.1 percent in the same period last year (see Note 7 below for a description of our use of measures not defined by GAAP). The 0.7 percentage point decrease was primarily due to favorable earnings mix by jurisdiction in fiscal 2027, partially offset by certain nonrecurring discrete tax costs in fiscal 2027.
(7) We have included measures in this release 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.
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 Board of Directors’ 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 53rd fiscal week, when applicable, have on year-to-year comparability. A reconciliation of these measures to reported net sales growth rates, the relevant GAAP measures, are included in our Operating Segment Results above.
Certain measures in this release are presented excluding the impact of foreign currency exchange (constant-currency). 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. We believe that these constant-currency measures provide useful information to investors because they provide transparency to underlying performance by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given volatility in foreign currency exchange markets.
Our fiscal 2027 outlook for organic net sales growth, constant-currency adjusted operating profit and adjusted diluted EPS, and free cash flow conversion are non-GAAP financial measures that exclude, or have otherwise been adjusted for, items impacting comparability, including the effect of foreign currency exchange rate fluctuations, restructuring and transformation charges, transaction and acquisition integration costs, acquisitions, divestitures, mark-to-market effects, and a 53rd week from the prior year. We are not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because we are unable to predict with a reasonable degree of certainty the actual impact of changes in foreign currency exchange rates and commodity prices or the timing or impact of acquisitions, divestitures, and restructuring and transformation actions throughout fiscal 2027. The unavailable information could have a significant impact on our fiscal 2027 GAAP financial results. 10 For fiscal 2027, we currently expect: the net impact from foreign currency exchange rates (based on a blend of forward and forecasted rates and hedge positions), divestitures completed in fiscal 2026 and 2027, and a 53rd week from the prior year to decrease net sales growth by approximately 4 percent; foreign currency exchange rates to have an immaterial impact on adjusted operating profit and adjusted diluted EPS growth; and restructuring and transformation charges and transaction and acquisition integration costs related to actions previously announced to total approximately $80 million to $85 million.
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.
Net mark-to-market valuation of certain commodity positions recognized in unallocated corporate items. Please see Note 4.
Non-cash valuation loss related to the planned divestiture of our Brazil business recorded in fiscal 2027. Please see Note 2.
Fiscal 2027 transaction costs primarily related to the definitive agreement to sell our Brazil business. Fiscal 2026 transaction costs related to the sale of our United States yogurt business. Please see Note 2.
Integration costs related to the Whitebridge Pet Brands acquisition in fiscal 2025 recorded in fiscal 2027 and fiscal 2026, and the acquisition of a pet food business in Europe in fiscal 2024 recorded in fiscal 2026.
Restructuring and transformation charges related to previously announced actions recorded in fiscal 2027 and fiscal 2026. Please see Note 3.
CPW transaction costs related to the sale of certain assets in fiscal 2026 recorded in fiscal 2027. CPW asset impairment charges and transaction costs related to certain assets held for sale recorded in fiscal 2026.
Divestitures gain recorded in fiscal 2026 related to the sale of our United States yogurt business in fiscal 2026 and Canada yogurt business in fiscal 2025. Please see Note 2.
Valuation adjustments of certain corporate investments in fiscal 2026. 11 Adjusted Operating Profit Growth 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. 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:
In Quarter Aug. 30, Aug. 24, Millions Ended 2026 2025 Change ────────────────────────────────────────────────────────────────────────────── Operati… profit $ 633.6 $ 1,725.8 -63 % as reported Mark-to… -29.5 8.5 effects Valuati… loss on held for 23.7 — sale business Transac… 4.3 11.8 costs Acquisi… integra… 1.7 1.4 costs Restruc… and 0.2 18.3 transfo… charges Divesti… — -1,054.4 gain Investm… activit… — -0.2 net Adjusted operati… $ 634.0 $ 711.2 -11 % profit Foreign currency Flat exchange impact Adjusted operati… profit growth, -11 % on a constan… basis
For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above.
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:
Per Share Quarter Aug. 30, Aug. 24, Data Ended 2026 2025 Change ────────────────────────────────────────────────────────────────────────────── Diluted earnings per $ 0.74 $ 2.22 -67 % share, as reported Valuati… loss on held for 0.04 — sale business Mark-to… -0.04 0.01 effects Transac… 0.01 0.02 costs Restruc… and — 0.03 transfo… charges Divesti… — -1.43 gain CPW asset impairm… — 0.02 and transac… costs Adjusted diluted earnings $ 0.75 $ 0.86 -13 % per share Foreign currency Flat exchange impact Adjusted diluted earnings per share -13 % growth, on a constan… basis
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. 12 Adjusted Earnings Comparisons as a Percent of Net Sales
We believe that these measures provide useful information to investors because they are important for assessing our adjusted earnings comparisons as a percent of net sales on a comparable year-to-year basis.
Our adjusted earnings comparisons as a percent of net sales are calculated as follows:
For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above.
(b) See reconciliation of adjusted effective income tax rate below for tax impact of each adjustment. 13 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.
Our segments’ operating profit growth rates on a constant-currency basis are calculated as follows:
Quarter Ended Aug. 30, 2026 ────────────────────────────────────────────────────────────────────────────── Percentage Percentage Change in Impact of Change in Operating Foreign Operating Profit Currency Profit on as Exchange Constant-… Reported Basis North America -15 % Flat -15 % Retail Internat… 14 % (1) pt 15 % North America -12 % Flat -12 % Pet North America 12 % Flat 12 % Foodserv… Total segment -10 % Flat -10 % operating profit
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.
For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above.
Full text with the tables
Exhibit 99
FOR IMMEDIATE RELEASE
September 23, 2026
General Mills Reports Fiscal 2027 First-quarter Results and Reaffirms Full-year
Outlook
•
Net sales
of $4.4 billion were down 3 percent due to the U.S. yogurt
divestiture; organic net sales¹ were
flat
•
Operating
profit of $634 mill
i
on was down 63 percen
t, driven largely by a $1 billion gain on the yogurt divestiture a year ago;
adjusted operat ing profit of $634 million was down 11 percent in constant
currency
•
Diluted earnings per shar
e (EPS) of $0.74 were down 67 percent; adjust
ed dilute
d EPS of $0.75 was down 13 perce
nt in constant currency
•
Company reaffirms full-year fiscal 2027 outlook
1 Please see Note 7 to the Consolidated Financial Statements below for
reconciliation of this and other non-GAAP measures used in this release.
MIN NEAPOLIS (September 23, 2026) – General Mills, Inc. (NYSE: GIS) today
reported results for its first quarter ended August 30, 2026.
“We are off to an encouraging start in fiscal 2027, driving improved topline
performance with stronger product innovation and renovation focused on the
benefits consumers are looking for today,” said General Mills Chairman and Chief
Executive Officer Jeff Harmening. “We are also executing with discipline in a
volatile environment, including delivering industry-leading cost savings through
our Holistic Margin Management program and our global Transformation initiative.
Based on our progress and the actions underway, we remain confident in our
ability to deliver our fiscal 2027 guidance.”
Building More Remarkable Brands
General Mills is investing in its brands to restore profitable organic net sales
growth, with initiatives that touch all elements of the company’s Remarkable
Experience Framework: product, packaging, brand communication, omnichannel
execution, and consumer value. With stronger and more remarkable brands, the
company is better positioned to deliver sustainable, profitable growth and value
creation over the long term.
First Quarter Results Summary
•
Net sales
were down 3 percent to $4.4 billion , driven by the impact of the U.S. yogurt
divest iture . Organic net sales essentially matched year-ago levels.
•
Gross mar
gin
was unchanged at 33.9 percent of net sales, with higher input costs offset by
favorable mark-to-market effects and favorable net price realization and mix.
Adjusted gross margin was down 90 basis points to 33.3 percent of net sales,
driven by higher input costs, partially offset by favorable net price
realization and mix.
•
Oper
ating profit
of $634 million was down 63 percent, driven primarily by a $1 billion gain on
the yogurt divestiture a year ago and lower gross profit dollars in fiscal 2027.
Operating profit margin
of 14.4 percent was down 2,380 basis points. Adjusted operating profit of $634
million was down 11 percent in constant currency, driven by higher input costs
and lower volume, partially offset by favorable net price realization and mix.
Adjusted operatin g profit margi n was down 130 basis po ints to 14.4 percent.
•
Net earnings attr
ibutable to General Mills
of $397 million were down 67 percent and
diluted EPS
was down 67 percent to $0.74, driven primarily by lower operating profit.
Adjusted diluted EPS of $0.75 was down 13 percent in constant currency, driven
primarily by lower adjusted operating profit and higher net interest expense.
Operating Segment Results
• The divestiture of the U.S. Yogurt business in the first quarter of fiscal
2026 was the only significant transaction impacting the comparability of
financial results between fiscal 2026 and fiscal 2027. The Brazil divestiture
was completed on September 2, 2026, subsequent to the end of the first quarter
of fiscal 2027.
• Tables may not foot due to rounding.
1
Components of Fiscal 2027
Reported Net
Sales Growth
First Quarter Volume Price/Mix Foreign Reported
Exchange Net Sales
North America Retail (9) pts 2 pts -- (7)%
North America Pet (6) pts 7 pts -- Flat
North America Foodservice (3) pts 4 pts -- 1%
International 6 pts (3) pts 1 pt 4%
Total (4) pts 1 pt -- (3)%
Compon…
of
Fiscal
2027
Organic
Net
Sales
Growth
First Organic Organic Organic Foreign Acquisi… Report…
Quarter Volume Price/M… Net Exchan… & Net
Sales Divesti… Sales
North
America (2) pts (1) pt (3)% -- (4) pts (7)%
Retail
North
America (6) pts 7 pts Flat -- -- Flat
Pet
North
America (1) pt 5 pts 4% -- (2) pts 1%
Foodse…
Intern… 6 pts (3) pts 4% 1 pt -- 4%
Total (1) pt -- Flat -- (3) pts (3)%
Fiscal 2027 Segment
Operating Profit
Growth
First Quarter % Change as Reported % Change in Constant
Currency
North America Retail (15)% (15)%
North America Pet (12)% (12)%
North America 12% 12%
Foodservice
International 14% 15%
Total (10)% (10)%
North America Retail Segment
First-quarter net sales for General Mills’ North America Retail segm ent were
down 7 percent to $2.4 billi o n, including a 4-point headwind from the U.S.
Yogurt divestiture. Net s a les were down double digits for the Big G Cereal &
Canada operating unit, including the impact of the yogurt divestiture, down mid-
single digits for U.S. Snacks, and flat for U.S. M eals & Baking Solutions.
Organic net sale s were down 3 percent and lagged Nielsen-measured retail sales
by approximately 1 point, as expected, driven by changes in retailer inventory.
The segment drove a 2-point sequential improvement in retail sales growth in the
quarter, with dollar share trends strengthening in the majority of its priority
categories. Segme nt operating profit of $479 million was down 15 percent as
reported and in constant currency, including the impact of the yogurt
divestiture, due primarily to lower volume and higher input costs, partially
offset by favorable net price realization and mix and lower selling, general,
and administrative (SG&A) expenses.
North America Pet Segment
First-quarter net sales for the North America Pet segment of $613 million
essentially matched year-ago levels. Net sales were up double digits for cat
food, up low-single digits for pet treats, and down high-single digits for dog
food. Organic net sal es were flat and outpaced all-chann el retail sales growth
by approximately 1 point , due to an extra month of results for the Whitebridge
Pet Brands business as its calendar was aligned to the company’s August fiscal
quarter end. Changes in retailer inventory were a modest headwind to the
segment’s first-quarter results. The company continues to expect retailer
inventory will be a low-single-digit headwind to full-year organic net sales
results for North America Pet, including the impact of changes in customer mix.
First-quarter segment operating profit of $100 million was down 12 percent as
reported and in constant currency, driven by higher input costs, lower volume,
and higher SG&A expenses, partially offset by favorable net price realization
and mix.
North America Foodservice Segment
First-quarter net sales for the North America Foodservice segment were up 1 pe
rce nt to $523 mil lion, includin g a 2-point hea dwind from the U.S. Yogurt
divestiture. Organic net sales were up 4 percent, led by growth on cereal and
frozen meals. The segment delivered another quarter of strong competitive
performance, holding or gaining market share across 100 percent of its priority
businesses. Seg ment operating profit was up 12 percent to $79 million, d riven
b y favorable net price realization and mix, partially offset by higher input
costs.
2
International Segment
First-quarter net sales for the Inte rnational segment increased 4 percent to
$794 million, including a 1-point benefit from foreign currency exchange.
Organic net sales we re up 4 percent, dr i ven by growth in distributor markets,
India, and China. S egment operating pr ofit of $75 million was up 14 percent as
repor ted and up 15 percent in constant currency, driven by higher volume and
lower input costs, partially offs et by unfavorable net price realization and
mix and a double-digit increase in media investment.
Joint Venture Summary
First-quarter constant-currency ne t sales were down 4 percent for Cer eal
Partners Worldwide (CPW) an d down 3 per cent for Häagen-Dazs Japan (HDJ).
Combined after-tax earnings from joint ven tures totaled $19 million in the qua
rter compared to $7 million in the prior year, driven primarily by the company’s
share of impairment charges and transaction costs related to certain assets held
for sale at CPW in the prior year.
Other Income Statement Items
First-quarter unallocated corporate items totale d $78 million n et expense in
fiscal 2027 compar ed to $126 million net expense a year ago (please see Note 4
below for more information on these expenses) . Excluding mark-to-market
valuation effects and other items affecting comparability, unallocated corporate
ite ms totaled $100 million net expense this year compared to $103 million net
expense a year ago.
Divestitures gain totaled $1.05 billion in the first quarter of fiscal 2026,
primarily related to the sale of the U.S. yogurt business (please see Note 2
below for more information on this transaction) . Restructuring, transformation,
impairment, and other exit costs totaled $21 million in the first quarter
compared to $16 million a year ago (please see Note 3 below for more information
on these charges) .
Net interest ex pense totaled $142 million in the first quarter compared to $133
million a year ago, driven primarily by higher interest rates. The effective tax
rate in the quarter was 24.5 percent compared to 25.6 percent last year (please
see Note 6 below for more informati on on our effective tax rate) . The first-
quarter adjusted effective tax rate was 23.4 percent compared to 24.1 percent a
year ago, driven pri marily by favorable earnings mix by jurisdiction in fiscal
2027, partially offset by certain nonrecurring discrete tax costs in fiscal
2027.
Cash Flow Generation and Cash Returns
Cash provided by operating activities to taled $298 million in the first quarter
compared to $397 million a year ago, driven primarily by lower accrued federal
income taxes payable, including tax expense associated with the sale of our U.S.
yogurt business in fiscal 2026. This was partially offset by an increase in net
earnings, excluding the pretax gain on the divestiture in fiscal 2026. C apital
investments total ed $90 million compared to $110 million a year ago. Dividends
paid totaled $330 million compared to $331 million a year ago. The company did
not repurchase shares in the first quarter of fiscal 2027 compared to $500
million in share repurchases a year ago. Average diluted shares outstanding in
the quarter decreased 1 percent to 538 million.
Fiscal 2027 Outlook
General Mills’ top priority is to restore profitable organic net sales growth
over the long term by making its brands resonate more deeply with consumers,
leveraging all elements of its Remarkable Experience Framework. For fiscal 2027,
the company expects category growth to be consistent with recent trends and
below its long-term historical growth rate, driven by a continued challenging
consumer backdrop. With its base price investment actions completed in fiscal
2026, the company is shifting its focus in fiscal 2027 to product innovation and
renovation news centered on the benefits that matter most to today’s consumers,
including better-for-you benefits like protein and fiber, bold flavors, fun, and
indulgence, as well as the continued trend in pet humanization. This approach is
expected to further strengthen its brands and drive improved organic net sales
performance in fiscal 2027.
On the bottom line, General Mills continues to expect to generate at least $750
million in savings from its Holistic Margin Management productivity program, its
global transformation initiative, and other cost savings actions in fiscal 2027,
which are expected to offset input cost inflation and brand investments. In
addition to those factors, the company continues to expect headwinds of
approximately 9 points on operating profit and 11 points on EPS in fiscal 2027
from lapping the 53rd week in fiscal 2026, normalizing corporate incentive
expense, and the impact of fiscal 2026 divestitures.
Based on the above assumptions, General Mills reaffirmed its full-year financial
targets² for fiscal 2027:
•
Organic net sales
are expected to range between down 1.5 percent and up 0.5 percent.
•
Adjusted operating profit
is expected to be down 13 percent to down 8 percent in constant currency.
•
Adjusted diluted earnings
are expected to be between $3.00 and $3.20 per share.
•
Free cash flow conversion
is expected to be approximately 95 percent of adjusted after-tax earnings.
3
The net impact of divestitures, foreign currency exchange, and the 53rd week is
now expected to reduce full-year fiscal 2027 reported net sales growth by
approximately 4 percent, driven primarily by the 53rd week comparison and the
Brazil divestiture. Foreign currency exchange is not expected to have a material
impact on adjusted operating profit growth or adjusted diluted EPS growth in
fiscal 2027.
2 Financial targets are provided on a non-GAAP basis because certain information
necessary to calculate comparable GAAP measures is not available. Please see
Note 7 to the Consolidated Financial Statements below for discussion of the
unavailable information.
General Mills will issue pre-recorded management remarks today, September 23,
2026, at approximately 6:30 a.m. Central time (7:30 a.m. Eastern time) and will
hold a live, webcasted question-and-answer session beginning at 8:00 a.m.
Central time (9:00 a.m. Eastern time). The pre-recorded remarks and the webcast
will be made available at www.generalmills.com/investors .
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 that are based on our current
expectations and assumptions. These forward-looking statements, including the
statements under the caption “Fiscal 2027 Outlook,” and statements made by Mr.
Harmening, are subject to certain risks and uncertainties that could cause
actual results to differ materially from the potential results discussed in the
forward-looking statements. In particular, our predictions about future net
sales and earnings could be affected by a variety of factors, including: imposed
and threatened tariffs by the United States and its trading partners;
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, tariffs, 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,
transformation 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
tariffs; and political unrest in foreign markets and economic uncertainty due to
terrorism or war. The Company undertakes no obligation to publicly revise any
forward-looking statement to reflect any future events or circumstances.
# # #
Contacts
(Investors) Jeff Siemon: +1-763-764-3202
(Media) Chelcy Walker: +1-763-764-6364
4
Consolidated Statements of Earnings and Supplementary Information
GENERAL MILLS, INC. AND SUBSIDIARIES
(Unaudited) (In Millions, Except per Share Data)
Quarter Aug. 30, Aug. 24,
Ended 2026 2025 % Change
──────────────────────────────────────────────────────────────────────────────
Net sales $ 4,389.5 $ 4,517.5 -3 %
Cost of 2,902.3 2,984.7 -3 %
sales
Selling,
general,
and 832.2 845.1 -2 %
administr…
expenses
Divestitu… — -1,054.4 NM
gain
Restructu…
transform…
impairmen… 21.4 16.3 31 %
and other
exit costs
Operating 633.6 1,725.8 -63 %
profit
Benefit
plan -10.6 -15.1 -30 %
non-servi…
income
Interest, 142.2 132.8 7 %
net
Earnings
before
income
taxes and 502.0 1,608.1 -69 %
after-tax
earnings
from joint
ventures
Income 122.8 410.9 -70 %
taxes
After-tax
earnings 18.9 6.8 178 %
from joint
ventures
Net
earnings,
including
earnings
(loss) 398.1 1,204.0 -67 %
attributa…
to
noncontro…
interests
Net
earnings
(loss)
attributa… 1.1 -0.2 NM
to
noncontro…
interests
Net
earnings
attributa… $ 397.0 $ 1,204.2 -67 %
to General
Mills
Earnings
per share $ 0.74 $ 2.22 -67 %
– basic
Earnings
per share $ 0.74 $ 2.22 -67 %
– diluted
Compari…
as a % Aug.
of net Quarter Aug. 30, 24, Basis Pt
sales Ended 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Gross 33.9 % 33.9 % Flat
margin
Selli…
gener…
and 19.0 % 18.7 % 30
admin…
expen…
Opera… 14.4 % 38.2 % -2,380
profit
Net
earni…
attri… 9.0 % 26.7 % -1,770
to
Gener…
Mills
Adjusted
compari…
as a %
of
net Aug.
sales Quarter Aug. 30, 24, Basis Pt
(a): Ended 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Adjust…
gross 33.3 % 34.2 % -90
margin
Adjust…
operat… 14.4 % 15.7 % -130
profit
Adjust…
net
earnin…
attrib… 9.2 % 10.4 % -120
to
General
Mills
(a) See Note 7 for a reconciliation of these measures not defined by generally
accepted accounting principles (GAAP).
See accompanying notes to consolidated financial statements.
5
Operating Segment Results and Supplementary Information
GENERAL MILLS, INC. AND SUBSIDIARIES
(Unaudited) (In Millions)
Quarter
Ended
Aug. Aug.
30, 24, %
2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Net
sales:
North
Ameri… $ 2,451.8 $ 2,625.5 -7 %
Retail
Inter… 794.3 760.2 4 %
North
Ameri… 612.8 610.0 Flat
Pet
North
Ameri… 523.1 516.7 1 %
Foods…
Total
segme… $ 4,382.0 $ 4,512.4 -3 %
net
sales
Corpo…
and 7.5 5.1 47 %
other
Total
net $ 4,389.5 $ 4,517.5 -3 %
sales
Opera…
profi…
North
Ameri… $ 478.6 $ 564.2 -15 %
Retail
Inter… 75.2 65.7 14 %
North
Ameri… 99.5 112.9 -12 %
Pet
North
Ameri… 79.4 70.6 12 %
Foods…
Total
segme… $ 732.7 $ 813.4 -10 %
opera…
profit
Unall…
corpo… 77.7 125.7 -38 %
items
Dives… — -1,054.4 NM
gain
Restr…
trans…
impai…
and 21.4 16.3 31 %
other
exit
costs
Opera… $ 633.6 $ 1,725.8 -63 %
profit
Quarter Aug. 30, Aug. 24, Basis Pt
Ended 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Segment
operati…
profit
as a %
of net
sales:
North
America 19.5 % 21.5 % -200
Retail
Interna… 9.5 % 8.6 % 90
North
America 16.2 % 18.5 % -230
Pet
North
America 15.2 % 13.7 % 150
Foodser…
Total
segment 16.7 % 18.0 % -130
operati…
profit
See accompanying notes to consolidated financial statements.
6
Consolidated Balance Sheets
GENERAL MILLS, INC. AND SUBSIDIARIES
(In Millions, Except Par Value)
Aug. 30, Aug. 24, May 31,
2026 2025 2026
──────────────────────────────────────────────────────────────────────────────
-Unaudit… -Unaudit…
ASSETS
Current
assets:
Cash
and $ 433.1 $ 952.9 $ 453.8
cash
equiva…
Receiv… 1,775.2 1,804.3 1,646.8
Invent… 2,163.2 2,051.5 1,917.9
Prepaid
expens…
and 512.8 431.1 599.8
other
current
assets
Total
current 4,884.3 5,239.8 4,618.3
assets
Land,
buildi… 3,383.4 3,583.2 3,443.4
and
equipm…
Goodwi… 14,113.1 15,660.2 14,122.4
Other
intang… 6,710.2 7,087.3 6,716.9
assets
Other 1,182.4 1,445.1 1,115.7
assets
Total $ 30,273.4 $ 33,015.6 $ 30,016.7
assets
LIABIL…
AND
EQUITY
Current
liabil…
Accoun… $ 3,715.2 $ 3,740.0 $ 3,729.5
payable
Current
portion
of 1,046.8 2,166.5 1,053.6
long-t…
debt
Notes 201.6 22.1 68.4
payable
Other
current 1,473.4 2,031.0 1,472.8
liabil…
Liabil…
held 503.0 — 449.8
for
sale
Total
current 6,940.0 7,959.6 6,774.1
liabil…
Long-t… 12,367.2 12,218.4 12,416.0
debt
Deferr…
income 2,260.4 2,056.9 2,265.8
taxes
Other 1,242.0 1,261.8 1,180.2
liabil…
Total 22,809.6 23,496.7 22,636.1
liabil…
Stockh…
equity:
Common
stock,
754.6
shares 75.5 75.5 75.5
issued,
$0.10
par
value
Additi…
paid-in 1,153.0 1,107.1 1,200.9
capital
Retain… 20,581.4 22,791.1 20,514.9
earnin…
Common
stock
in
treasu…
at
cost, -11,842… -11,866… -11,900…
shares
of
219.9,
219.9
and
220.9
Accumu…
other -2,516.9 -2,600.5 -2,522.3
compre…
loss
Total
stockh… 7,450.4 9,506.6 7,368.4
equity
Noncon… 13.4 12.3 12.2
intere…
Total 7,463.8 9,518.9 7,380.6
equity
Total
liabil… $ 30,273.4 $ 33,015.6 $ 30,016.7
and
equity
See accompanying notes to consolidated financial statements.
7
Consolidated Statements of Cash Flows
GENERAL MILLS, INC. AND SUBSIDIARIES
(Unaudited) (In Millions)
Quarter Ended Aug. 30, 2026 Aug. 24, 2025
──────────────────────────────────────────────────────────────────────────────
Cash Flows - Operating
Activities
Net earnings, including
earnings (loss) $ 398.1 $ 1,204.0
attributable to
noncontrolling interests
Adjustments to reconcile
net earnings to
net cash provided by
operating
activities:
Depreciation and 139.8 138.7
amortization
After-tax earnings from -18.9 -6.8
joint ventures
Distributions of
earnings from joint 10.9 26.9
ventures
Stock-based compensation 21.8 15.1
Deferred income taxes -18.0 10.0
Pension and other
postretirement benefit -6.6 -5.2
plan contributions
Pension and other
postretirement benefit -3.0 -6.7
plan costs
Divestitures gain — -1,054.4
Restructuring,
transformation, 21.0 -2.7
impairment, and other
exit costs
Changes in current
assets and liabilities,
excluding the effects of -251.5 58.8
acquisitions and
divestitures
Other, net 4.2 19.3
Net cash provided by
operating 297.8 397.0
activities
Cash Flows - Investing
Activities
Purchases of land,
buildings, and -90.5 -109.5
equipment
Proceeds from — 1,803.4
divestitures
Investments in -25.4 —
affiliates, net
Proceeds from disposal
of land, — 2.8
buildings, and equipment
Other, net — -1.9
Net cash (used) provided
by investing -115.9 1,694.8
activities
Cash Flows - Financing
Activities
Change in notes payable 132.7 -654.8
Proceeds from common
stock issued on — 0.2
exercised options
Purchases of common — -500.0
stock for treasury
Dividends paid -330.5 -330.9
Other, net -11.8 -21.7
Net cash used by -209.6 -1,507.2
financing activities
Effect of exchange rate
changes on cash -0.2 4.4
and cash equivalents
(Decrease) increase in
cash and cash -27.9 589.0
equivalents
Cash and cash
equivalents - beginning
of year (includes $37.9 491.7 363.9
million of cash
classified as held for
sale as of May 31, 2026)
Cash and cash
equivalents - end of
period (includes $30.7
million of cash $ 463.8 $ 952.9
classified as held for
sale as of Aug. 30,
2026)
Cash Flows from changes
in current assets and
liabilities, excluding
the effects of
acquisitions and
divestitures:
Receivables $ -58.5 $ 0.9
Inventories -261.1 -135.2
Prepaid expenses and
other current 90.4 36.6
assets
Accounts payable -32.1 -252.5
Other current 9.8 409.0
liabilities
Changes in current
assets and $ -251.5 $ 58.8
liabilities
See accompanying notes to consolidated financial statements.
8
GENERAL MILLS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) 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 for annual
and interim financial information. In the opinion of management, all adjustments
considered necessary for a fair presentation have been included and are of a
normal recurring nature.
(2) During the fourth quarter of fiscal 2026, we entered into a definitive
agreement to sell our business in Brazil to Café Três Corações S.A. (3corações)
for a base price of R$800 million, subject to certain specified deductions and
customary post-closing adjustments. As a result, we have classified relevant
assets and liabilities (the disposal group) associated with our Brazil business
as held for sale in our Consolidated Balance Sheets as of August 30, 2026, and
May 31, 2026. In the fourth quarter of fiscal 2026, upon initial classification
of the disposal group as held for sale, we recorded a $1,032 million non-cash
pre-tax loss to value the disposal group at the lower of its carrying value or
fair value less costs to sell based on estimated net proceeds, which was based
on Level 2 inputs in the fair value hierarchy and included the impact of
accumulated foreign currency translation losses that will be reclassified to
earnings upon sale. In the first quarter of fiscal 2027, we recorded an
additional non-cash pre-tax loss of $24 million based on changes to the carrying
value of the disposal group, including the change in accumulated foreign
currency translation losses, and a revised estimate of net proceeds. We recorded
the loss in restructuring, transformation, impairment, and other exit costs in
our Consolidated Statements of Earnings, and adjusted the reserve for assets
held for sale and accrual for the loss in excess of assets held for sale
accordingly.
On September 2, 2026, subsequent to the end of the first quarter of fiscal 2027,
we completed the sale of our business in Brazil to 3corações. We expect to
record certain customary post-closing sale price adjustments in the second
quarter of fiscal 2027.
During the first quarter of fiscal 2026, we completed the sale of our United
States yogurt business to Groupe Lactalis S.A. and recorded a pre-tax gain of
$1,046 million.
During the third quarter of fiscal 2025, we completed the sale of our Canada
yogurt business to Sodiaal International and recorded a pre-tax gain of $96
million. In the first quarter of fiscal 2026, we recorded a sale price
adjustment that resulted in an $8 million increase to the pre-tax gain.
(3) Restructuring, transformation, and impairment charges are recorded in our
Consolidated Statement of Earnings as follows:
In Millions Quarter Ended Aug. 30, 2026 Aug. 24, 2025
──────────────────────────────────────────────────────────────────────────────
Restructurin…
transformati…
impairment, $ 21.4 $ 16.3
and other
exit costs
Cost of sales 2.5 2.0
Total
restructurin…
transformati… $ 23.9 $ 18.3
and
impairment
charges
In the first quarter of fiscal 2027, we recorded an additional $24 million non-
cash pre-tax valuation loss related to the planned divestiture of our Brazil
business. Please see Note 2 for additional information.
In the first quarter of fiscal 2027, we did not undertake any new restructuring
actions or transformation actions. We recorded $18 million of restructuring and
transformation charges in the first quarter of fiscal 2026 related to actions
previously announced. We expect these actions to be completed by the end of
fiscal 2030.
(4) Unallocated corporate expenses totaled $78 million in the first quarter of
fiscal 2027, compared to $126 million in the same period in fiscal 2026. In the
first quarter of fiscal 2027, we recorded a $30 million net decrease in expense
related to the mark-to-market valuation of certain commodity positions and grain
inventories, compared to an $8 million net increase in expense in the same
period last year. Additionally, in the first quarter of fiscal 2027, we recorded
$4 million of transaction costs primarily related to the definitive agreement to
sell our Brazil business, compared to $12 million of transaction costs related
to the sale of our United States yogurt business in the same period last year.
9
(5) Basic and diluted earnings per share (EPS) were calculated as follows:
In Millions,
Except per Aug. 24,
Share Data Quarter Ended Aug. 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net earnings
attributable $ 397.0 $ 1,204.2
to General
Mills
Average
number of
common 537.4 541.3
shares –
basic
EPS
Incremental
share effect
from: (a)
Stock — 0.2
options
Restricted
stock units
and 0.5 1.0
performance
share units
Average
number of
common 537.9 542.5
shares –
diluted EPS
Earnings per
share – $ 0.74 $ 2.22
basic
Earnings per
share – $ 0.74 $ 2.22
diluted
(a) Incremental shares from stock options, restricted stock units, and
performance share units are computed by the treasury stock method.
(6) The effective tax rate for the first quarter of fiscal 2027 was 24.5 percent
compared to 25.6 percent for the first quarter of fiscal 2026. The 1.1
percentage point decrease was primarily due to certain unfavorable tax
components related to the divestiture of our United States yogurt business in
fiscal 2026 and favorable earnings mix by jurisdiction in fiscal 2027, partially
offset by certain nonrecurring discrete tax costs in fiscal 2027. Our effective
tax rate excluding certain items affecting comparability was 23.4 percent in the
first quarter of fiscal 2027, compared to 24.1 percent in the same period last
year (see Note 7 below for a description of our use of measures not defined by
GAAP). The 0.7 percentage point decrease was primarily due to favorable earnings
mix by jurisdiction in fiscal 2027, partially offset by certain nonrecurring
discrete tax costs in fiscal 2027.
(7) We have included measures in this release 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.
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 Board of Directors’
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 53rd fiscal week, when applicable, have on
year-to-year comparability. A reconciliation of these measures to reported net
sales growth rates, the relevant GAAP measures, are included in our Operating
Segment Results above.
Certain measures in this release are presented excluding the impact of foreign
currency exchange (constant-currency). 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. We believe that these constant-currency measures provide useful
information to investors because they provide transparency to underlying
performance by excluding the effect that foreign currency exchange rate
fluctuations have on period-to-period comparability given volatility in foreign
currency exchange markets.
Our fiscal 2027 outlook for organic net sales growth, constant-currency adjusted
operating profit and adjusted diluted EPS, and free cash flow conversion are
non-GAAP financial measures that exclude, or have otherwise been adjusted for,
items impacting comparability, including the effect of foreign currency exchange
rate fluctuations, restructuring and transformation charges, transaction and
acquisition integration costs, acquisitions, divestitures, mark-to-market
effects, and a 53rd week from the prior year. We are not able to reconcile these
forward-looking non-GAAP financial measures to their most directly comparable
forward-looking GAAP financial measures without unreasonable efforts because we
are unable to predict with a reasonable degree of certainty the actual impact of
changes in foreign currency exchange rates and commodity prices or the timing or
impact of acquisitions, divestitures, and restructuring and transformation
actions throughout fiscal 2027. The unavailable information could have a
significant impact on our fiscal 2027 GAAP financial results.
10
For fiscal 2027, we currently expect: the net impact from foreign currency
exchange rates (based on a blend of forward and forecasted rates and hedge
positions), divestitures completed in fiscal 2026 and 2027, and a 53rd week from
the prior year to decrease net sales growth by approximately 4 percent; foreign
currency exchange rates to have an immaterial impact on adjusted operating
profit and adjusted diluted EPS growth; and restructuring and transformation
charges and transaction and acquisition integration costs related to actions
previously announced to total approximately $80 million to $85 million.
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 4.
Valuation loss on held for sale business
Non-cash valuation loss related to the planned divestiture of our Brazil
business recorded in fiscal 2027. Please see Note 2.
Transaction costs
Fiscal 2027 transaction costs primarily related to the definitive agreement to
sell our Brazil business. Fiscal 2026 transaction costs related to the sale of
our United States yogurt business. Please see Note 2.
Acquisition integration costs
Integration costs related to the Whitebridge Pet Brands acquisition in fiscal
2025 recorded in fiscal 2027 and fiscal 2026, and the acquisition of a pet food
business in Europe in fiscal 2024 recorded in fiscal 2026.
Restructuring and transformation charges
Restructuring and transformation charges related to previously announced actions
recorded in fiscal 2027 and fiscal 2026. Please see Note 3.
CPW asset impairments and transaction costs
CPW transaction costs related to the sale of certain assets in fiscal 2026
recorded in fiscal 2027. CPW asset impairment charges and transaction costs
related to certain assets held for sale recorded in fiscal 2026.
Divestitures gain
Divestitures gain recorded in fiscal 2026 related to the sale of our United
States yogurt business in fiscal 2026 and Canada yogurt business in fiscal 2025.
Please see Note 2.
Investment activity, net
Valuation adjustments of certain corporate investments in fiscal 2026.
11
Adjusted Operating Profit Growth 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. 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:
In Quarter Aug. 30, Aug. 24,
Millions Ended 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Operati…
profit $ 633.6 $ 1,725.8 -63 %
as
reported
Mark-to… -29.5 8.5
effects
Valuati…
loss on
held for 23.7 —
sale
business
Transac… 4.3 11.8
costs
Acquisi…
integra… 1.7 1.4
costs
Restruc…
and 0.2 18.3
transfo…
charges
Divesti… — -1,054.4
gain
Investm…
activit… — -0.2
net
Adjusted
operati… $ 634.0 $ 711.2 -11 %
profit
Foreign
currency Flat
exchange
impact
Adjusted
operati…
profit
growth, -11 %
on a
constan…
basis
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 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:
Per Share Quarter Aug. 30, Aug. 24,
Data Ended 2026 2025 Change
──────────────────────────────────────────────────────────────────────────────
Diluted
earnings
per $ 0.74 $ 2.22 -67 %
share,
as
reported
Valuati…
loss on
held for 0.04 —
sale
business
Mark-to… -0.04 0.01
effects
Transac… 0.01 0.02
costs
Restruc…
and — 0.03
transfo…
charges
Divesti… — -1.43
gain
CPW
asset
impairm… — 0.02
and
transac…
costs
Adjusted
diluted
earnings $ 0.75 $ 0.86 -13 %
per
share
Foreign
currency Flat
exchange
impact
Adjusted
diluted
earnings
per
share -13 %
growth,
on a
constan…
basis
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.
12
Adjusted Earnings Comparisons as a Percent of Net Sales
We believe that these measures provide useful information to investors because
they are important for assessing our adjusted earnings comparisons as a percent
of net sales on a comparable year-to-year basis.
Our adjusted earnings comparisons as a percent of net sales are calculated as
follows:
Aug. Aug.
In Quar… 30, 24,
Mill… Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Com… Perc… Perc…
as a of of
% of Value Net Value Net
Net Sales Sales
Sal…
Gro…
mar…
as $ 1,48… 33.9 % $ 1,5… 33.9 %
rep…
(a)
Mar… -29.5 -0.7 % 8.5 0.2 %
eff…
Res… 2.5 0.1 % 2.0 — %
cha…
Acq…
int… 1.1 — % — — %
cos…
Adj…
gro… $ 1,46… 33.3 % $ 1,5… 34.2 %
mar…
Ope…
pro… $ 633.6 14.4 % $ 1,7… 38.2 %
as
rep…
Mar… -29.5 -0.7 % 8.5 0.2 %
eff…
Val…
loss
on
held 23.7 0.5 % — — %
for
sale
bus…
Tra… 4.3 0.1 % 11.8 0.3 %
cos…
Acq…
int… 1.7 — % 1.4 — %
cos…
Res…
and 0.2 — % 18.3 0.4 %
tra…
cha…
Div… — — % -1,… -23… %
gain
Inv…
act… — — % -0.2 — %
net
Adj…
ope… $ 634.0 14.4 % $ 711… 15.7 %
pro…
Net
ear…
att…
to $ 397.0 9.0 % $ 1,2… 26.7 %
Gen…
Mil…
as
rep…
Val…
loss
on
held
for
sale 23.7 0.5 % — — %
bus…
net
of
tax
(b)
Mar…
eff…
net -22.7 -0.5 % 6.5 0.1 %
of
tax
(b)
Tra…
cos…
net 3.3 0.1 % 9.1 0.2 %
of
tax
(b)
Acq…
int…
cos…
net 1.3 — % 1.1 — %
of
tax
(b)
CPW
ass…
imp… 0.8 — % 11.8 0.3 %
and
tra…
cos…
Res…
and
tra…
cha… 0.1 — % 14.1 0.3 %
net
of
tax
(b)
Div…
gai…
net — — % -77… -17… %
of
tax
(b)
Inv…
act…
net,
net — — % -0.2 — %
of
tax
(b)
Adj…
net
ear…
att… $ 403.6 9.2 % $ 469… 10.4 %
to
Gen…
Mil…
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.
(a) Net sales less cost of sales.
(b) See reconciliation of adjusted effective income tax rate below for tax
impact of each adjustment.
13
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.
Our segments’ operating profit growth rates on a constant-currency basis are
calculated as follows:
Quarter
Ended
Aug. 30,
2026
──────────────────────────────────────────────────────────────────────────────
Percentage Percentage
Change in Impact of Change in
Operating Foreign Operating
Profit Currency Profit on
as Exchange Constant-…
Reported Basis
North
America -15 % Flat -15 %
Retail
Internat… 14 % (1) pt 15 %
North
America -12 % Flat -12 %
Pet
North
America 12 % Flat 12 %
Foodserv…
Total
segment -10 % Flat -10 %
operating
profit
Note: Table may not foot due to rounding.
Adjusted Effective Income Tax Rate
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:
Aug. Aug.
Quar… 30, 24,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
In
Mil… Pret… Pretax
(Ex… Earn… Inco… Earni… Income
Per (a) Taxes (a) Taxes
Sha…
Dat…
As $ 502.0 $ 122.8 $ 1,60… $ 410.9
rep…
Mar… -29.5 -6.8 8.5 2.0
eff…
Val…
loss
on
held 23.7 — — —
for
sale
bus…
Tra… 4.3 1.0 11.8 2.7
cos…
Acq…
int… 1.7 0.4 1.4 0.3
cos…
Res…
and 0.2 — 18.3 4.3
tra…
cha…
Div… — — -1,0… -276…
gain
Inv…
act… — — -0.2 -0.1
net
As $ 502.4 $ 117.5 $ 593.5 $ 143.2
adj…
Eff…
tax
rat…
As 24.5 % 25.6 %
rep…
As 23.4 % 24.1 %
adj…
Sum
of
adj… $ -5.4 $ -267…
to
inc…
tax…
Ave…
num…
of
com… 537.9 542.5
sha…
-
dil…
EPS
Imp…
of
inc…
tax
adj… $ 0.01 $ 0.49
on
adj…
dil…
EPS
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.
(a) Earnings before income taxes and after-tax earnings from joint ventures.
14