Overview

• US packaged foods maker's fiscal Q4 sales slightly beat analyst expectations

• Adjusted EPS for fiscal Q4 beat consensus, rising 27% in constant currency

• Company posted operating loss on non-cash charges tied to goodwill and Brazil divestiture

Outlook

• General Mills expects fiscal 2027 organic net sales to range from down 1.5% to up 0.5%

• Company targets adjusted diluted EPS of $3.00 to $3.20 for fiscal 2027

• General Mills expects at least $750 mln in cost savings in fiscal 2027

Result Drivers

• MARGIN IMPROVEMENT - Higher adjusted gross margin driven by favorable net price realization and mix, and trade expense timing, partially offset by higher input costs

• COST MANAGEMENT - Lower selling, general, and administrative expenses supported profit growth, especially in North America Retail

• SEGMENT VARIATION - International and Pet segments saw profit growth from price/mix and lower input costs, while Retail and Foodservice faced volume and cost pressures

Company press release: ID:nBw7QZ31xa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Sales	Slight Beat*	$4.61 bln	$4.59 bln (15 Analysts)
Q4 Adjusted EPS	Beat	$0.95	$0.80 (16 Analysts)
Q4 EPS		-$3.74
Q4 Gross Margin		34.80%
Q4 Adjusted Gross Margin		34.20%
Q4 Operating profit		-$2.09 bln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 12 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy."

• Wall Street's median 12-month price target for General Mills Inc is $36.00, about 3.4% above its June 30 closing price of $34.80

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

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