General Mills reported Q1 2025 revenue of $4.848 billion, down 4.92% year over year, with a gross margin of approximately 34.83% and an operating margin around 17.15%. Net income was $579.9 million, and diluted earnings per share stood at $1.03. Despite a modest top-line contraction, the company delivered solid cash generation, with operating cash flow of $624.2 million and free cash flow of $483.9 million, supporting a substantial dividend and a sizable share repurchase program. The quarter reflects ongoing margin pressures from input costs and mix, offset by cost controls and a favorable working-capital cadence, culminating in a negative cash conversion cycle that benefits liquidity timing.
However, year-over-year profitability declined meaningfully across the board: gross profit decreased about 1.09% YoY, operating income fell ~8.70% YoY, and net income declined ~13.46% YoY. The company maintains a robust asset base and substantial goodwill/intangible asset load, but liquidity metrics show near-term fragility with a current ratio of 0.66 and a quick ratio of 0.386. Leverage remains elevated, with total debt around $13.32 billion and net debt near $12.85 billion, which could constrain flexibility if macro conditions worsen. In sum, General Mills exhibits durable cash-flow resilience and a strong shareholder return profile, yet faces meaningful near-term margin headwinds and balance-sheet leverage to monitor.