GENERAL MILLS INC Q4 FY2025 earnings call

• Returning to volume growth, specifically in NAR, with investments in value in Q3 and expansion in Q4, and new product and core renovation news being strong. • Excited about Blue Buffalo's national fresh pet food launch, learned from test market that brand resonates and products are good, and looking to launch at scale. • Reinvestment in '26 with factors like fresh investment, tariff mitigation, and Yoplait divestiture costs being considered. • Pet Food business having inventory variability due to e-commerce sales, but some businesses within it showing growth like Cat business and integrated Tiki Cat. • Focused on competitiveness in categories rather than significant category rebound. • Pricing actions targeted, not a race to the bottom, with marketing and new products being important. • SG&A expected to grow faster than top line due to reinvestment and incentive reset. • Fresh Pet Food segment seen as having significant growth potential with humanization of pets being a trend.

No specific detailed financial performance for each product segment in absolute terms and revenue contribution % provided in a summarized way. However, mentions of various segments like North America Retail, Pet, etc. with some performance details such as Pet Food having inventory variability and certain businesses within it having growth like Cat business back to mid-single-digit growth, Blue Buffalo brand resonating in fresh pet food launch, etc.

• Reinvestment in '26 with significant spending, including for Fresh Pet Food national launch. • Trade expense phasing to impact organic sales setup for next year. • Expect SG&A to grow faster than top line due to reinvestment. • Category growth expected to be below long-term expectations, around 2% to 3% growth rate. • Lean more on volume in current period as opposed to more on price/mix in previous inflation period.

• Unpredictable environment with factors like tariffs and inflation being hard to predict. • Inventory variability in Pet Food business due to e-commerce sales leading to quarter-to-quarter lumpiness. • Potential impact of competitive responses to pricing actions on margin and market position. • Stranded costs from Yoplait divestiture having a tail end in fiscal '27.

Q: Ken Goldman asked about margin potential and merchandising strategy for Blue Buffalo's national fresh pet food launch.

A: Jeffrey Harmening said they learned brand resonates and products are good from test market, now can launch at scale, and Dana McNabb added on building consumer proposition and marketing plans.

Q: Andrew Lazar asked about ensuring margin profile with reinvestment.

A: Kofi Bruce said factors like fresh investment multiyear but expect profitability, tariff mitigation not all in year, Yoplait divestiture stranded cost drag.

Q: Peter Galbo asked about Pet inventory reversal and Pet business performance.

A: Jeffrey Harmening said Pet inventory in good place, lumpiness due to e-commerce, and Pet business having some growth like Cat business and integrated Tiki Cat.

Q: Peter Grom asked about organic revenue phasing and category growth assumptions.

A: Kofi Bruce said trade expense phasing impacts organic sales setup, and focused on competitiveness.

Q: Christopher Carey asked about competitive response to pricing and margin vs SG&A.

A: Jeffrey Harmening said pricing not race to the bottom, targeted, and Kofi Bruce said SG&A to grow faster.

Q: Robert Moskow asked about pricing getting positive and Fresh Pet Food growth expectations.

A: Jeffrey Harmening said need mix of price/mix and volume over time, and Dana McNabb said Fresh segment is $3B now and expected to be $10B in 10 years.

Q: David Palmer asked about category growth assumptions and must get rights.

A: Jeff Siemon said category growth below long-term, and Jeffrey Harmening said looking for improvement across board.

Q: Scott Marks asked about innovation and price investment.

A: Dana McNabb said protein innovation performing well and price investment leveraging seasons.

Q: Max Gumport asked about Fresh Pet Food investment and innovation vs acquisition.

A: Jeffrey Harmening discussed evaluation of organic vs acquisition.

Q: Michael Lavery asked about salty snacks in strategy.

A: Dana McNabb said salty snacks have challenges but innovation planned for improvement.