General Mills Reports Fiscal 2026 Second-quarter Results and Reaffirms Full-year Outlook (Form 8-K)

General Mills Reports Fiscal 2026 Second-quarter Results and Reaffirms Full-year Outlook

•As expected, second-quarter and six-month results included significant impacts from investments to improve brand remarkability, the North American yogurt divestitures, and an unfavorable trade expense timing comparison

•Net sales of $4.9 billion were down 7 percent, including a 6-point headwind from the net impact of divestitures and acquisitions; organic net sales¹ were down 1 percent

•Operating profit of $728 million was down 32 percent; adjusted operating profit of $848 million was down 20 percent in constant currency

•Diluted earnings per share (EPS) of $0.78 were down 45 percent; adjusted diluted EPS of $1.10 was down 21 percent in constant currency

1Please see Note 7 to the Consolidated Financial Statements below for reconciliation of this and other non-GAAP measures used in this release.

MINNEAPOLIS (December 17, 2025) - General Mills, Inc. (NYSE: GIS) today reported results for its second quarter ended November 23, 2025. Results for the quarter and six-month period included the previously expected impacts of investments to improve brand remarkability, the North American yogurt divestitures, and an unfavorable trade expense timing comparison from fiscal 2025.

"Our team continued to execute exceptionally well in a volatile operating environment, delivering results ahead of our expectations in the second quarter," said General Mills Chairman and Chief Executive Officer Jeff Harmening. "Our investments in remarkability are working, helping restore organic volume growth in North America Retail this quarter and driving strong competitiveness across each of our segments. With improved momentum in the first half and confidence in our plans to drive further improvement in the rest of the year, we are reaffirming our full-year fiscal 2026 outlook."

In fiscal 2026, General Mills is investing in its brands to restore volume-driven 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. This includes strong innovation plans that are expected to generate a 25 percent increase in sales from new products in fiscal 2026. The investments in remarkability are initially driving improved pound growth and market share results. The Company expects to return to dollar growth after the initial price investment phase, as improved remarkability for consumers drives pound growth with favorable price/mix. The combination of these growth investments, divested earnings from the North American Yogurt divestitures, and normalization of corporate incentive expense is expected to be a headwind to operating profit and EPS in fiscal 2026, but position the Company for stronger, more sustainable, and more profitable growth over the long term.

Second Quarter Results Summary

•Net sales were down 7 percent to $4.9 billion, including a 6-point headwind from the net impact of divestitures and acquisitions. Organic net sales were down 1 percent, driven by unfavorable organic net price realization and mix.

•Gross margin was down 210 basis points to 34.8 percent of net sales, driven by higher input costs and unfavorable mark-to-market effects, partially offset by the favorable impact of net price realization and mix to gross margin, largely due to a product mix benefit from the North American Yogurt divestitures. Adjusted gross margin was down 150 basis points to 34.8 percent of net sales, driven by higher input costs, partially offset by the favorable impact of net price realization and mix to gross margin, including the product mix benefit from the yogurt divestitures.

•Operating profit of $728 million was down 32 percent, driven primarily by lower gross profit dollars and higher restructuring, transformation, impairment, and other exit costs. Operating profit margin of 15.0 percent was down 560 basis points. Adjusted operating profit of $848 million was down 20 percent in constant currency, driven by lower adjusted gross profit dollars. Adjusted operating profit margin was down 290 basis points to 17.4 percent.

•Net earnings attributable to General Mills of $413 million were down 48 percent and diluted EPS was down 45 percent to $0.78, driven primarily by lower operating profit, lower after-tax earnings from joint ventures, and a higher effective tax rate, partially offset by lower net shares outstanding. Adjusted diluted EPS of $1.10 was down 21 percent in constant currency, driven primarily by lower adjusted operating profit and a higher adjusted effective tax rate, partially offset by lower net shares outstanding.

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Six Month Results Summary

•Net sales of $9.4 billion were down 7 percent, including a 5-point headwind from the net impact of divestitures and acquisitions. Organic net sales were down 2 percent.

•Gross margin was down 150 basis points to 34.4 percent of net sales, driven by higher input costs, partially offset by the favorable impact of net price realization and mix to gross margin, including the product mix benefit from the yogurt divestitures. Adjusted gross margin was down 140 basis points to 34.5 percent of net sales.

•Operating profit of $2.45 billion was up 29 percent, driven primarily by a $1.05 billion gain on divestitures, partially offset by lower gross profit dollars and higher restructuring, transformation, impairment, and other exit costs. Operating profit margin of 26.2 percent was up 730 basis points. Adjusted operating profit of $1.6 billion was down 19 percent in constant currency, driven by lower adjusted gross profit dollars. Adjusted operating profit margin was down 250 basis points to 16.6 percent.

•Net earnings attributable to General Mills of $1.6 billion were up 18 percent and diluted EPS was up 22 percent to $3.00, driven primarily by higher operating profit and lower net shares outstanding, partially offset by lower after-tax earnings from joint ventures and a higher effective tax rate. Adjusted diluted EPS of $1.96 was down 21 percent in constant currency, driven primarily by lower adjusted operating profit and a higher adjusted effective tax rate, partially offset by lower net shares outstanding.

Operating Segment Results

•The following transactions impacted the comparability of year-to-date financial results between fiscal 2025 and fiscal 2026: the divestiture of the U.S. Yogurt business in the first quarter of fiscal 2026, the divestiture of the Canada Yogurt business in the third quarter of fiscal 2025, and the acquisition of the North American Whitebridge Pet Brands business in the third quarter of fiscal 2025.

•Tables may not foot due to rounding.

Components of Fiscal 2026 Reported Net Sales Growth

Second Quarter

Volume

Price/Mix

Foreign Exchange

Reported Net Sales

North America Retail

(16) pts

3 pts

--

(13)%

North America Pet

3 pts

7 pts

--

11%

North America Foodservice

(6) pts

(1) pt

--

(8)%

International

4 pts

--

2 pts

6%

Total

(9) pts

1 pt

--

(7)%

Six Months

North America Retail

(16) pts

3 pts

--

(13)%

North America Pet

2 pts

6 pts

--

8%

North America Foodservice

(4) pts

(1) pt

--

(6)%

International

1 pt

3 pts

2 pts

6%

Total

(8) pts

1 pt

--

(7)%

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Components of Fiscal 2026 Organic Net Sales Growth
Second Quarter			Organic Volume			Organic Price/Mix			Organic Net Sales			Foreign Exchange			Acquisitions & Divestitures			Reported Net Sales
North America Retail			1 pt			(4) pts			(3)%			--			(10) pts			(13)%
North America Pet			(2) pts			2 pts			1%			--			10 pts			11%
North America Foodservice			(2) pts			1 pt			Flat			--			(7) pts			(8)%
International			4 pts			--			4%			2 pts			--			6%
Total			--			(2) pts			(1)%			--			(6) pts			(7)%
Six Months
North America Retail			--			(4) pts			(4)%			--			(9) pts			(13)%
North America Pet			(3) pts			1 pt			(2)%			--			10 pts			8%
North America Foodservice			(1) pt			1 pt			Flat			--			(6) pts			(6)%
International			1 pt			3 pts			4%			2 pts			--			6%
Total			--			(2) pts			(2)%			--			(5) pts			(7)%

Fiscal 2026 Segment Operating Profit Growth
Second Quarter			% Change as Reported			% Change in Constant Currency
North America Retail			(21)%			(21)%
North America Pet			(12)%			(12)%
North America Foodservice			(12)%			(12)%
International			19%			30%
Total			(18)%			(18)%
Six Months
North America Retail			(22)%			(22)%
North America Pet			(9)%			(9)%
North America Foodservice			(8)%			(8)%
International			111%			107%
Total			(17)%			(17)%

North America Retail Segment

Second-quarter net sales for General Mills' North America Retail segment were down 13 percent to $2.9 billion, including a 10-point headwind from the North American Yogurt divestitures. Net sales were down double digits for the Big G Cereal & Canada operating unit, down mid-single digits for U.S. Snacks, and down low-single digits for U.S. Meals & Baking Solutions. Organic net sales were down 3 percent. Increased consumer value, innovation, and product news drove strong pound competitiveness in the quarter, with the segment holding or gaining pound share in 8 of its top 10 U.S. categories. Retail sales growth and market share in pounds were stronger than in dollars in the quarter, as expected, due to investments to address key price cliffs and price gaps in selected categories. Segment operating profit of $682 million was down 21 percent as reported and in constant currency, due primarily to lower volume, including the impact of the yogurt divestitures.

Through six months, North America Retail segment net sales were down 13 percent to $5.5 billion, including a 9-point headwind from divestitures. Organic net sales were down 4 percent. Segment operating profit of $1.2 billion was down 22 percent as reported and in constant currency, driven primarily by lower volume, including the impact of the yogurt divestitures.

North America Pet Segment

Second-quarter net sales for the North America Pet segment were up 11 percent to $660 million, including a 10-point benefit from the North American Whitebridge Pet Brands acquisition. Net sales were up double digits for both cat food and pet treats, and were down low-single digits for dog food. Organic net sales were up 1 percent. The segment generated all-channel retail sales growth of approximately 1 percent and held share in the quarter. Segment operating profit of $123 million was down 12 percent, driven by higher input costs and higher selling, general, and administrative (SG&A) expenses, including investments to support the launch of Love Made Fresh, partially offset by favorable net price realization and mix and higher volume.

Through six months, North America Pet segment net sales were up 8 percent to $1.3 billion, including a 10-point benefit from the North American Whitebridge Pet Brands acquisition. Organic net sales were down 2 percent. Segment operating profit was down 9

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percent to $236 million, driven by higher input costs and higher SG&A expenses, partially offset by favorable net price realization and mix and higher volume.

North America Foodservice Segment

Second-quarter net sales for the North America Foodservice segment were down 8 percent to $582 million, including a 7-point headwind from the yogurt divestitures. Organic net sales essentially matched year-ago levels, with growth in frozen baked goods, cereal, and frozen meals offset by a decline in bakery flour, including a 3-point headwind from index pricing. The segment delivered another quarter of strong competitiveness, holding or gaining share in 88 percent of its priority businesses. Segment operating profit was down 12 percent to $105 million, driven by the headwind from the yogurt divestitures, partially offset by growth on the remaining business.

Through six months, North America Foodservice net sales were down 6 percent to $1.1 billion, including a 6-point headwind from the yogurt divestitures. Organic net sales essentially matched year-ago levels. Segment operating profit was down 8 percent to $175 million, reflecting the headwind from the yogurt divestitures, partially offset by growth on the remaining business.

International Segment

Second-quarter net sales for the International segment increased 6 percent to $729 million, including a 2-point benefit from foreign currency exchange. Organic net sales were up 4 percent, driven by growth in Brazil, China, India, and North Asia. The segment maintained its strong competitive performance, holding or gaining share in 54 percent of its priority businesses. Segment operating profit of $28 million was up 19 percent as reported and up 30 percent in constant currency, driven primarily by favorable net price realization and mix and higher volume, partially offset by higher SG&A expenses.

Through six months, International net sales were up 6 percent to $1.5 billion, including a 2-point benefit from foreign currency exchange. Organic net sales were up 4 percent. Segment operating profit more than doubled to $94 million, driven primarily by favorable net price realization and mix, partially offset by higher SG&A expenses.

Joint Venture Summary

Second-quarter constant-currency net sales were down 1 percent for Cereal Partners Worldwide (CPW) and essentially matched year-ago levels for Häagen-Dazs Japan (HDJ). Combined after-tax loss from joint ventures totaled $60 million in the quarter, compared to after-tax earnings of $30 million in the prior year, driven by the Company's $85 million pre-tax share of a non-cash goodwill impairment charge related to the CPW Australia market.

Other Income Statement Items

Second-quarter unallocated corporate items totaled $88 million net expense in fiscal 2026 compared to $65 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 items totaled $91 million net expense this year compared to $80 million net expense a year ago.

Restructuring, transformation, impairment, and other exit costs totaled $122 million in the second quarter compared to $1 million a year ago (please see Note 3 below for more information on these charges).

Net interest expense totaled $126 million in the second quarter compared to $125 million a year ago. The effective tax rate in the quarter was 23.3 percent compared to 20.1 percent last year (please see Note 6 below for more information on our effective tax rate). The second-quarter adjusted effective tax rate was 23.3 percent compared to 20.1 percent a year ago, driven primarily by unfavorable earnings mix by jurisdiction in fiscal 2026 and certain non-recurring discrete tax benefits in fiscal 2025.

Cash Flow Generation and Cash Returns

Cash provided by operating activities totaled $1.2 billion through six months of fiscal 2026 compared to $1.8 billion a year ago, driven primarily by lower net earnings excluding the pre-tax gain on divestitures, partially offset by the change in after-tax joint venture earnings and the change in restructuring, transformation, impairment, and other exit costs. Capital investments totaled $253 million compared to $301 million a year ago. Dividends paid totaled $659 million compared to $676 million a year ago. The Company's share repurchase activity through six months of fiscal 2026 totaled $500 million compared to $600 million in share repurchases a year ago. Average diluted shares outstanding in the first half decreased 4 percent to 540 million.

Fiscal 2026 Outlook

General Mills' top priority in fiscal 2026 is to restore volume-driven organic net sales growth. The Company expects category growth to be below its long-term projections, reflecting less benefit from price/mix amid a continued challenging consumer backdrop. To strengthen its categories and market share performance, the Company is increasing investment in consumer value, product news, innovation, and brand building, guided by its Remarkable Experience Framework. This includes a significant strategic investment to launch Blue Buffalo into the fast-growing U.S. fresh pet food sub-category. The Company expects the combination of these growth

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investments, input cost inflation (including the impact of tariffs), and normalization of corporate incentive expense will outpace its expectation for Holistic Margin Management cost savings of 5 percent of cost of goods sold, $100 million in global transformation and other efficiency savings, and benefits from a 53rd week in fiscal 2026. Additionally, the Company expects the net impact of the North American Yogurt divestitures and the North American Whitebridge Pet Brands acquisition will reduce adjusted operating profit growth by approximately 5 points in fiscal 2026.

Based on the above assumptions, the Company reaffirmed its full-year fiscal 2026 financial targets²:

•Organic net sales are expected to range between down 1 percent and up 1 percent.

•Adjusted operating profit and adjusted diluted EPS are both expected to be down 10 to 15 percent in constant currency.

•Free cash flow conversion is expected to be at least 95 percent of adjusted after-tax earnings.

•The net impact of divestitures, acquisitions, foreign currency exchange, and the 53rd week is expected to reduce full-year net sales growth by approximately 4 percent. Foreign currency exchange is not expected to have a material impact on adjusted operating profit or adjusted diluted EPS growth.

2Financial 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, December 17, 2025, 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.