General Mills Reports Fiscal 2027 First-quarter Results and Reaffirms Full-year Outlook (Form 8-K)

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 million was down 63 percent, driven largely by a $1 billion gain on the yogurt divestiture a year ago; adjusted operating profit of $634 million was down 11 percent in constant currency

•Diluted earnings per share (EPS) of $0.74 were down 67 percent; adjusted diluted EPS of $0.75 was down 13 percent in constant currency

•Company reaffirms full-year fiscal 2027 outlook

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

MINNEAPOLIS (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 divestiture. Organic net sales essentially matched year-ago levels.

•Gross margin 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.

•Operating 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 operating profit margin was down 130 basis points to 14.4 percent.

•Net earnings attributable 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 Exchange

Reported 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)%

Components of Fiscal 2027 Organic Net Sales Growth

First Quarter

Organic Volume

Organic Price/Mix

Organic Net Sales

Foreign Exchange

Acquisitions & Divestitures

Reported Net Sales

North America Retail

(2) pts

(1) pt

(3)%

--

(4) pts

(7)%

North America Pet

(6) pts

7 pts

Flat

--

--

Flat

North America Foodservice

(1) pt

5 pts

4%

--

(2) pts

1%

International

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 Foodservice			12%			12%
International			14%			15%
Total			(10)%			(10)%

North America Retail Segment

First-quarter net sales for General Mills' North America Retail segment were down 7 percent to $2.4 billion, including a 4-point headwind from the U.S. Yogurt divestiture. Net sales 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. Meals & Baking Solutions. Organic net sales 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. Segment 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 sales were flat and outpaced all-channel 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 percent to $523 million, including a 2-point headwind 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. Segment operating profit was up 12 percent to $79 million, driven by favorable net price realization and mix, partially offset by higher input costs.

2

International Segment

First-quarter net sales for the International segment increased 4 percent to $794 million, including a 1-point benefit from foreign currency exchange. Organic net sales were up 4 percent, driven by growth in distributor markets, India, and China. Segment operating profit of $75 million was up 14 percent as reported and up 15 percent in constant currency, driven by higher volume and lower input costs, partially offset by unfavorable net price realization and mix and a double-digit increase in media investment.

Joint Venture Summary

First-quarter constant-currency net sales were down 4 percent for Cereal Partners Worldwide (CPW) and down 3 percent for Häagen-Dazs Japan (HDJ). Combined after-tax earnings from joint ventures totaled $19 million in the quarter 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 totaled $78 million net expense in fiscal 2027 compared 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 items 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 expense 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 information 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 primarily 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 totaled $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. Capital investments totaled $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.

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, 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.