General Mills reported a solid first quarter in a backdrop of a modest revenue decline. Q1 2025 revenue came in at $4.848B, down 5.7% year over year, while gross profit of $1.689B yielded a gross margin of 34.83%. Despite a revenue challenge, operating income rose 2.4% YoY to $831.5M and the company delivered an operating margin of 17.15%, underscoring disciplined cost management and favorable product mix. Net income stood at $579.9M with EPS of $1.03, broadly flat YoY, while QoQ metrics showed meaningful momentum in profitability with a 5.10% sequential lift in diluted EPS.
Free cash flow generation remained robust, with operating cash flow of $624.2M and free cash flow around $483.9M. Capital allocation was active, including a $300M share repurchase and a $337.8M dividend, reflecting a balanced approach to returning capital while sustaining an investment-grade balance sheet. The balance sheet shows total assets of $31.77B and total liabilities of $22.24B, with total debt of $13.32B and net debt of $12.85B. Cash and cash equivalents stood at $468.1M. Liquidity metrics are modest (current ratio 0.66, quick ratio 0.39, cash ratio 0.06), indicating a need to monitor working capital and debt levels against ongoing cash generation.
Looking ahead, management did not provide a formal quarterly guidance in the dataset, but the quarter reinforces GM’s ability to manage through demand volatility via cost discipline, pricing/tailwinds from core brands, and a disciplined capital allocation framework. Investors should monitor commodity costs, pricing realization, mix effects (notably the resilience of high-margin categories and pet food) and international growth as the company navigates a challenging macro environment while continuing to deploy free cash flow toward deleveraging and shareholder value.