GIS - Earnings call transcript Q4 2024

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Operator

Good morning, and welcome to General Mills Fourth Quarter Fiscal 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the call over to Jeff Siemon, Vice President of Investor Relations and Treasurer. Please go ahead.

Jeff Siemon

Thank you, Julia, and good morning, everyone. us and our results. full joining our session for quarter fourth year you today Q&A for on Thank fiscal 'XX hope and to to time this morning which everyone press Investor available I listen Relations our release, website. we review made our our view our remarks on presentation materials, prepared had

that that management's current on note to session, important based our Q&A we and are assumptions. may It's in make forward-looking statements views

for this to today's impact morning's press of factors we for which could and call. on refer release forward-looking that may statements please reconciliations discussing information, non-GAAP So be

our I'm CFO. and here this morning with and Jeff our Harmening, Bruce, Chairman Kofi CEO;

So I first get the you think to please we can us started? and get Julia, can ahead question. go

Operator

[Operator Instructions] Our question come first JPMorgan. will from from Goldman Ken

Kenneth Goldman

wanted understood challenges to that that start. a greater than a was the I have International. It's latter But rather sure prepared but been the it consumer degree. more might the of in in was remarks it. by a question down I bit that make about the indicate appreciate specific to would price/mix, dynamics I volume pressured commentary

So broader and there then any I'm us puts can you quarter. unusual past takes follow-up. a if and this I were dynamic the have just And if through curious there walk

Kofi Bruce

thanks the Sure. Kofi. Ken, for question. is This

were obviously sold segment. for goods was year results, you from of full a came an the that XX% important as net A organic in to to in quarter than QX, sales cost immaterial know, of half bit company's adjustment down reclassification So our International but more the the in QX. in sales that from

really conditions difficult and both rest China. of in was a of function the the market The in decline Brazil International

were shelf the value inventory consumer reducing year. environment performance, as levels customers environment where Brazil the and Our significantly as last pretty the well versus customer at specifically challenges both

that had business. start traffic and in after our on sentiment a China, quarter shop a strong premium or downturn negative we for to consumer dumpling real in a year, souring impact the then the Häagen-Dazs And saw our

So that's...

Kenneth Goldman

sorry. Oh,

Kofi Bruce

good. Yes. that's Yes, all

Kenneth Goldman

I'm follow-up the if thank stepping curious always for bit for top considerations any we of guidance this apologize, every top words, in line bottom us I year. out about you but and quarter. there's could the detailed all if -- you year. think break cadence I'm that. little the EPS in The your to of first a you P&L I provide on appreciate modeling from and particular, the the is And growth as

Kofi Bruce

Yes.

in too expect note get other results, year that below I of we the just of the the on levels performance investment strongest into against the quarter QX by think the volume of won't of and a -- than obviously, with to 'XX. rest improved driven the we year primarily our detailed would our higher we to trend balance step as comparison focus then fiscal

Operator

question Lazar Andrew next from Barclays. from comes Our

Andrew Lazar

Maybe, know mission start reinvestment, you for in 'XX. in Jeff, is the drive clear through to points need examples. of value consumers, optimizing equation areas, mentioning even of in improve the mentioned of contemplated your to sort prepared better And sort as price which results to increase sort off, discussed XX% prominently know you volume I a spending coupon a the outlook I remarks, in certain for

know price. just in I ways, value And consumer not the different of lots measures

hot for more sense right button investors let's or I higher-quality how equity sort say, sort among of you of incremental So mix is what would get of versus, topic broken hoping to a better of 'XX building spend, particularly sort trade out this now. spending price-oriented the was of as consider brand across such maybe a a

Jeffrey Harmening

look in X.X% last at down fourth volume, I of That's they improving terms year, gain terms If and ] take was our we mission were of back which of improved year, performance #X -- half past categories the X.X% to performance in had quarter. is Andrew. you, value in first pound some the categories through this volume to I up and mean our the competitiveness. Thank Yes. [ right. a really step

we and And that our benefits I from pricing think lapping talked year they previously, back had thought lapping the and did. of events we SNAP really category the private which of a smaller Gradually, they that's performance, improve few on-shelf about year are half important and because as in brands. of of there fiscal did. label ago, And the some a other availability is would

so indeed place. And took that

food to higher our than us to the inflation not actually now higher many the longer assumed people And competitiveness. fact for of the do broader Actually, is environment. coming seeing than increase be, that for if at -- you down. environment, job is in we're the level inflation X% But so been in would still of is it And necessarily. macroeconomic broader food to inflation look has longer X%

value is our more the so do for to consumers. job And create

As next can matter of the you start meaningful increase a of have value take a will And is spending of point in fact in we the I And out, variety have ways. year. point communication. amount would guess place rightly that brand at I in consumer we of spending the the

see levels that inflation. than You've higher for seen our the are probably done we what math and productivity

So our be gross margin okay. should

wisely, to do money the we job and then brand is And there to with spend start the communication. so

have news. and next meaningful week. with really it's Wilderness, we good some increase, also just coming up I I advertising some pet advertising. saw yesterday, so but again, food start a have it we fantastic And

to so to in Pet. back job Life Tastefuls, do gotten a and growth already now has We've Formula Wilderness Protection

he we've highlighting we've in global category. in got taste cereal another first coming Doughboy look things got and of great in you coming share don't like back, is are the flakier few only quarter, coming and the cereal, have he's years, our kinds a to quarter. Bringing big about doing news a business label, we're second got And third but more the that. do. Kelce all and what we in crust back for not private Doughboy, The brothers at after news If us, they that

in a Totino's has got in We've many marketing. that. the then Olympics about great sponsor and feel we some good countries, So

good investment, to So product about product We we the really our comes news. themselves. brand it good down but got feel also

news did twice We taste ago a the that when year our really have we is king. probably -- taste in categories,

and in And all taste Those like cheese of or sugar news. K-XX. your that's kids whether kinds so brownies in biscuits mac or Annie's are or great Betty reducing or cereals Crocker fudgy our cheese

new ones XX%, And be should product big investing of in in neighborhood we're the our products where our brands. activity new somewhere up really good on around and

category, to off start as is well great the far Cheerios cereal breakfast Valley free. bars, Fruity as Nature so So are allergy which which in lunchbox, a year this

Totino's really breakfast moms rolls. the know We like

we So the ROIs, found, so variety can that, packs, because -- increasing beginning lot manufacturer manufacturers, which things have we're really our data, also many value, so the innovation. like have a and first-party year. of do then effectively other good from there differentiates are we And of lot by And not add we or we us can of about got with good every that. target a can but ways XX% couponing we the that in

do we tells we spending. research it's have the increasing our the And do have so that. when coupon that that highly But that, ability we us we're to effective

places. there have other sharpen to pricing do are. price about points under pet -- much some but as we wet We that. we it's had pet as are have And we'll in always price clip, are, food. to So there but there We get talked food, a didn't

is feel job so And amount at value we for good next as of that #X look we operate that year. and about we really the consumers,

Andrew Lazar

just some goods suggests, gross Okay. And 'XX margin a Jeff highlighted, Kofi. quick HMM The fiscal commentary flexibility then to for cost versus as one, of inflation around reinvest.

margins of consumer? both the -- guess, given you pressure the still goes not gross there year? of but full you're across least amount little for in to just reinvestment that the gross could bit at kind I can some reinvestment do a SG&A, protect, does sort Given year, if margin of you can expand for your against margin, need anticipate not full planning, what that trade and gross be Or plan,

Kofi Bruce

question, Andrew. question. the Great Appreciate

a I did the of eye look key at gross flexibly of activity, levels of with would the we've we in So as that to business, job we're amount an is say towards flexibility see the here would growth-driving expansion with got even we Jeff listing And play investment? which margin enough investing of off. an modest going some eloquent

Operator

from Our comes Bryan from next America. of Bank question Spillane

Bryan Spillane

the last couple for should been this point Mills. for low year. If starting the say, say have that and I this look for question, fiscal in just some to one investment, term -- context just And quarters, X morning. we your have we've there's the is it's a the over right, -- that back around coming implied -- of enough increased different at waiting I of plan General reinvestment, guided in you us not -- or a corner. come just of angles And is And the to that's this 'XX? really, in kind I

true the across that's think I whole group.

to now? just seems business the just right, like money it give uncertainty more back, there's opportunity yourself, guess, so than versus or just take actually spend the why most. opportunity, that, year I potential cushion And given that more not to this And more more planning in

Jeffrey Harmening

Yes.

like more uncertainty. So the of each I've last years. you Bryan, volatility that about thanks for -- the said question. for The talk and X

the So evolve. for the volatility. does we have continue market where to waiting I'm year don't And

that. So question there's about no

you're evolve. Obviously, said, But marketing unduly enough being we've the got think good market really -- -- continue support. market the as we does without here ourselves -- conservative. is cushion I've to we've we're given And right,

are good our -- we've really on core brands. new products news got Our

improve would this our across X% expectation year. our this different our performance is year. that current down improve coming segments And we so was my We this which would volume year, volume performance

our margins Foodservice operating that it's the North committed can we each good, Retail back improving volume to by that or levels are have And that I'm that activity or level know with I International competitiveness. So do Pet America are and are and to of we confident or segments, already. news our our the performance already of actually that pre-pandemic supported that, we have gross that whether

the and the what say, in is on we growth. not drive our really drive see so our productivity change inflation, some sure our a we to to reinvesting need And make counting control. you as the necessarily that competitiveness, outstrips change have we're a within growth. and environment our as of that's to that we fuel It in And

And so our to we feel ability good do about that.

Bryan Spillane

dynamic is expectation you this things how anticipating are? a on the similar on planned how you've competitiveness, just year, moves? up set to follow do how environment competitors that competitive you meaning this are again, as make quick expect what's just Maybe your given And year, just would

Jeffrey Harmening

can't looking Yes. The certainly for but growth. rational competitors, that and the And more has exceptionally not see changing. what's me -- I it's we're well, is all for speak -- it's hard to been for environment interesting my that been

And to X% level X% mean I the reason because we -- that I I say mean of still inflation. have have some we is inflation.

kind that really have, in of so be productivity continues we that for environment to like absent And begs leading of rational. it an environment, levels

of for I up, to ways that. If that is up is a value spending back the about you year bit it relative think who level at kind look sure competitors of up as question discount of depth before little asked out, if value. lot pandemic, a promotional we too. was of I the But see little last I'm before. you our Andrew a do, bit, and are look There to months, to consumers, promotional XX it's create started a frequency intensity. And

know gets so consumers to of product news be make And brands. levers sure a pulling back everything that to marketing can our we and else. the of and we'll that And the big all lot the the value

Operator

Deutsche comes question from next Our Powers Bank. from Steve

Stephen Robert Powers

take and roughly have each if in hear started contribution this positive talk at someone drilling case. price started of the mean There's you start to about who guess construction. behind the the through volume company to slightly from I Apologies equal question which flat sort me. a I call level, year to as I you is,

Or I the from representative through sequencing kind equal the segments? guess that deviation enterprise? be you the is business across totality contribution think of there the that as expect year of sort any of or of you to across about different do the roughly

Jeffrey Harmening

piece look But all, being we look of way, I at as the the as it, -- we about as in volume same The by price/mix. hear we it, mix background, Yes. at talk Steve. as important relatively can't drilling I that look is really the at And it. price we the think and first

I wouldn't segments. any expect undue differential one of performance our from

of lots opportunities which we're as and across across lots the thing we Foodservice, not something Really, in improve. improve I it's say one to really job to another So if is think we in segment. segments, the to well, volume for the do growth in of segment, did one have really different to Even looking opportunities board. have

guess In -- I last sales as -- into terms terms a of be my of year the that the which quarter, sequencing, you growth sales in as quarter look ahead. that against the of would go quarter. going which up see of our was first year, our only the lot comment at We're growth highest you in pricing we was fiscal

of it our happens a along in gradual with where year we first over in we see last doesn't the gradual the America that look year. true that's reinvestment, on as our year. in first sales with at quarters And ago the gradually was toughest the Retail, course in which price/mix even say had We the the said, as especially from QX of America quarter makes North quarter, QX would really quite so I the probably improvement And on being year comp Retail year. quarter, I profitability expect a Kofi some comp toughest. X and would over an the impact in nice of North the the has mean the good. every course but what

Stephen Robert Powers

Yes.

Okay. Great.

expect you've kind embedded on the those Just Kofi, call in contribution guess you as China I International, terms those develop countries, in started Ken the and about in maybe of year talked of and some on how in any you you perspective the On or those to challenges 'XX. back regions, the started where progresses? of to -- Brazil moment. markets what the going

Kofi Bruce

at improvement of to the Jeff's -- think for past we that. and expecting certainly we markets, we kind us really But point, year. thing with critical are off pick volume expecting last which Similarly International, just segments. improvement and as We're this of all of Yes. look continued our up in EU, in on are of well Brazil, off is performance performance then AU and our this performed so see strength GEMS year's I China,

Operator

comes question Alexia Bernstein. Howard next Our from from Alliance

Connor Cerniglia

dynamics to your how segment. your see a do ask for about in of in And one think data ready-to-eat at Howard. you a competitors. challenged Jeff, Connor share suggests And promotional is spend Can increased it you Or channel talk continue to on. more front? on at This this Alexia when I'd pass stepping rational Cerniglia experienced like bit behavior? a I'll about cereal about Measured this has time you've there concern you XXXX? pricing segment is market

Jeffrey Harmening

cereal. -- we've to would rational I behavior I that would in Yes. continue. seen expect

for we our category. key cereal is feel to job us game Our back in playing focus the is -- honestly, brands game. have in the best to our the get on competitors' primarily We like and And games. our we do

had is good had We products. product ago. we some Actually, new product last in first innovation than we year top innovation our the better new had Cheerios the this of Fruity I And half. think referenced X I a year year.

our core We coming news a innovation brands. half. But important have the than we the even of coming on product some good is lot in that have second more new

some I'm also tops, with have And merchandising some big talked sure in wouldn't the our box about year back-to-school talk brothers, some excited our and about brand coming. like of which we but in about, period, but we on call, on promised about where messaging, half second which excited I'm I program a as think the have brands, big the out teams I I this I Kelce with the taste news making the of rolling coming

year, year pretty this was as be would get innovation will back really our opportunity was I coming continue growth good And that early brands so past the as quite with thought innovation this on has our it our good. job news to big really the even I to the is And that, And be cereal core suggest our better. good, innovation. think good to and returns and

Operator

from question Palmer from next comes Citi. Our Tom

Thomas Palmer

comments, we I a If growth appreciate was be give accrual, trade as guess should be down this other around I'll to want we but it starting might kind point Or are I considerations the into year? inventory you about -- overly thinking based and I there enter move sales on specific we exclude X%. your Should as we the not look of we quarter? at reductions a think organic first earlier as here, try. the

Kofi Bruce

question. the Yes. I appreciate

let and down a a Retail. you'll see point step little back to I'll drilling if North give the and if So try me and enterprise of starting then me I America bit Pet perspective, broader give to privilege at can here, just you

So organic critical move thing look to retail measured at QX that the think as QX. pretty we sales, while our we net from saw in consistent they here the slowdown were we is sales, I

you point tailwind. and trade in the comparison And At of 'XX. in the -- QX, of we on QX expense the Pet fiscal our phasing had on retailer a inventory so as the rightly is points in X saw from versus modest QX noted, we enterprise decline where or headwind also from net the big a front level, QX

that And of worth third Brazil, on made the in its about moved to I'd COGS, was then to drag I adjustment that think an had sales important, point X reference International, and we which I own. again on point net

segment drag. a X basis drag expense you those about points is points factors it it look comparison of you as trade then peel X of that at about have back. And in X on So as aggregate, at from you NAR,

about to a saw QX. -- inventory versus of tailwind at we adjustment headwind impact tailwind or in a in -- of QX point had point retailer flipping the quarter also point NAR a of the We

some then at comparison. as in points we of also Pet, look we weather Then we from NAR. QX headwind And benefited patterns about from the X expense trade in had

QX a in amount also modest QX. inventory from of retailer then have in And few reductions places. as versus We losses we did key a saw headwind well SKU

in gets the you kind aggregate, picture. that So of

the how critical QX the thinking roughly at you look here the Nielsen's quarter, to thing to QX, you're is as think about line. in I for read-through

Thomas Palmer

Got it.

in priorities. you And allocation terms Okay. repo capital pieces had presentation, the share above here. X kind listed of then in M&A of I

share assume that does for decline uses? flow cash dividend First, the deployed share other of free X% in to guidance what excess count the extent is repo in versus

then and past us know update an second, been year, but And this size standpoint? you've I from on M&A criteria plenty over give could look, your asked a appetite you and about the

Kofi Bruce

Sure. Sure.

first think I been priorities start allocation have I'd evergreen. pretty capital that So our by acknowledging

for So clearly, is, I That's -- growth. of to the allocate make is have years. capital internally handful and spending top number. We've if want think investment we roughly you last first we the the at -- around look averaged kind of X% for sure X.X%

we're a allocating that capital after-tax roughly our uninterrupted dividend in earnings. And dividend paid line years. again, our we've for Second, with increasing for XXX-plus

our out, into plan. And a to both range, we've then is something price rare, kind which easily and share episodic, we of of big rightly we you accommodate pointed as the repurchase M&A at was the our build patterns. done acquisition as billion Buffalo, we M&A adjustment modest But generally, in $X are $X.X pretty third, something not acquisitions that And again, which you last in billion do is patterns, with big, unless Blue most can look M&A. it's

the remains your growth repurchase to changes meals execute the priorities, anchor value, unlock on which places element. look well but would act around opportunities. To as share will pet make criteria allow discretionary identify points margins critical criteria I get critical leads the occasions improve capabilities faster and M&A, filter which transactions. start repurchase our us we also us can And and where for obviously, to we with our strategic most for expectations will we add leverage second us, we obviously, to that our as, food. first point around at and share So M&A as think for us to priorities around convenient breakfast we obviously, around And as us snacking

our cycle. capability with working M&A candidly been the always-on throughout we've So

creation. and continue of We same very and have at At to very the aggressively terms strong we've remained disciplined time, both look in filters opportunities. returns value

Operator

from from question next Our Matt Smith Stifel. comes

Matthew Smith

little I profit in the performance a bit the -- dive wanted in on the or profit Pet to segment.

I behind that know You in sustainable volume get look But business investment the some it the were is we as and decline try margin back that to look to growth. a you quarter. mid-XXs with talked should about this as XXXX? even to the quarter fiscal solidly you Wilderness in we increased stabilize performance in fourth the at

Kofi Bruce

Sure. Yes, start. let me

chain stable and benefited drive both volume of of we even the higher-than-expected face in we think HMM ability I more in supply this, to the saw. a declines levels environment our

opportunities, less and have external but we frankly, chain to HMM capitalize internalize both in drive disruption continue We previously supply supply struggling the that to was, to also to was period. were available on production that when

So feel of is look I what volume about point. right the exit very good -- improved would focused as think at we're business trends. on What is critical now sort driving the I we we

XX% target. XX%-plus I think wouldn't is expect and the the I would level. very necessarily that we at competitive So level profitability, the

to We And growth. I the doing say would be to like expect drive our is continue to improvement gross much back strong to into going HMM. be the at we're focus reinvesting business on drive to margin enterprise, able

Jeffrey Harmening

year of or pleased work the back over they us margin Kofi on To I'm really a the the year the to our both and last where Buffalo a team place so. roughly year lot do the the into And done were restore over back are job I Blue mean, Yes. with XX% we profile. growth. with get gross to to sales what we've up challenged done that, margin past said, have ago, on a our And margins

and that's now so do And -- to leverage. to without volume job is the

top do we to really the We're about performance. Life done Protection we've double And now Formula. going is good so what our feel to on on job down to line that. improve And

business. about last the more our advertising that. feel growth. get cat seen business And on put that We've We in some back good to Tastefuls quarter, we've

And fuel going that. on to so we're put more

And little put the while, good to here is we on And advertising and do, advertising now job it we've level next talking the behind on but been do job about in messaging. on a to a for good of really Wilderness. July

so that the is And really do. to job

the And We the good rest to can we I to real extent job the it our Buffalo have mean, of that these growth, think margins to I Blue back is But get nicely. maintain while will flow performance. really do do quite top good productivity. line accelerating

Matthew Smith

just follow-up. And a quick

to fiscal in look about achieve keeps the growth little -- distribution at year? a 'XX some Any something remains a that tougher as add as a to into talked You that little look we detail more less that Pet we division. next drag Is perhaps that? losses volume to

Jeffrey Harmening

during of on a treats wet a We've little other pandemic, food. had And kind couldn't could. was bit on as because losses pet bit who competitors supply some little the and well as that distribution we some were there

we rolling sell had so and extra some And that's off. placement,

really it's or big But our big our not customers. flavors

-- movement. in you with improved aggregate seen business And performance performance look increasingly we've our Blue good at on so that, on Buffalo even if

improved for that, year for with our volume Blue. coming the in is so performance expectation And even

Operator

comes from Palmer from David question Evercore next Our ISI.

David Palmer

remarks you you segment. drag quarter. in it in for one areas fiscal in specialty fourth -- 'XX? growth that the a was fiscal 'XX. also prepared and that, focus know about about of talked I'll big on Pet growing revenue the into Pet a see the Do segment also you was second. of specialty Pet Do follow stabilizing just up Clearly, for I the Pet

Jeffrey Harmening

Yes.

get We've not I would channel. what specific I say channel in David. avoid seen actually is channel. that going the would in an improvement is see The asked, -- won't -- it but I'm improvement an into to channel, I what you by since So completely, that

about Wilderness right really working retailers us It is of our the Wilderness. about and do is in own the Now improvement about to performance. sizing getting there job our for with to improve and the performance

By in and the performance way, the rowing want same too. to Wilderness, We on all of direction. we're improve in the they're all it, so

so We'll the yields performance I And channel. Pet improve my would in with the that Wilderness, over thing that important what to time. is improve. in that right most particularly for channel, place But see actions our which expectation the specialty feel we performance be us in improved to have

David Palmer

the segment. a seemed did question during an on just baking to And COVID. That very be area that well

and behaviors You the you areas quarter. to as 'XX. wanted on that pulse that it's in -- I one you cited declining it your in make going be that get that to Are most an this of drag just seeing was not segment fiscal consumer around and ongoing sure for

high-margin segment would pass you. you the are I it's drive how baking for know -- about segment that occasions you And I'll do that a feeling What and consumer it around behaviors at-home on. that? and the

Jeffrey Harmening

Yes.

at-home actually me to at mean are So At-home XX% I quite let occasions. XX% eaten occasions of high. with food is home. start now about

to continue. inflation, facing are with consumers that challenges we the Given would expect

I So eating category a don't at-home occasions. performance on see for drag

first that So point. be would the

shelves position, in itself return well. after there share volume past we this many that saw has of terms to It's competitors, our pretty if a remarkable and in is label look second category the hung been particularly of years label. mainly Pillsbury, at private the has smaller The challenge. private of year, And you growth,

I past an year, is going so And to anomaly. this be think,

our us level in environment, in And us plans key the for activity. quite you, for I And really the of think tell is I'll change good. not a is in the change our key there are

Doughboy think we've very biscuits, which well. got like product the improvements, But about, back. I we're also on talked taste serve I things As bringing us improvements will

coming Reese's We dough have and packs brands seen in Monster cookie Oreo a and variety Cookies. with of like

our share really business on And and a really news to have year. so we Pillsbury plan good good this

hands within and us to And good on there. Pillsbury, get our it's back growth really to so feel I our plans about

Operator

question Cowen. Moskow from next Our from Robert comes TD

Robert Moskow

the -- know, volume. more importance of now. shifted not But peers is your to wanted it the you denying lot a emphasis to just And of have it I right and it I'm used sounds been companies years historically. a that different the of create lot over to convenience. strategy improve improve CPG have margins than way mix premiumization, to a and That's the through value

accept Can you on I'm like time? premium of these at consumer do there's still absorb And today. if a of both can lot the there's this wondering volume offerings environment. discussion seems It same in still or -- the if things more

Jeffrey Harmening

don't premiumization. trade-off between as see and volume I Rob. Yes, it a

particularly really premium behind offering, Blue I our think I'll but it's take good Buffalo, is a which Life marketing. has well an Formula done and. Protection

when big about And messaging value to so talked back really really, is brands good that's good earlier, I really crucial. marketing and why our on getting really

So getting premiumization trade-off back and don't volume categories. a see I to between the in

I it's a it's got example offering premium really we've it. a against Pillsbury and. And in category, good and market is think another the where an

us down versus I hear talking volume obviously, think about a the were ago. year reason you volumes is, our

And get the so for that's really back to us to that. do to is job

But -- right to premiumize. and we that I think mean can't doesn't you're that but ask,

is many are we brand in think, make offer the itself. in go cases, we sure that together. The I the as not fact, think those about So key they exclusive. with it to commensurate things And is that mutually value

because that to about you certainly immediately lot the that a a a have the lot success. why be is talk going and is our of we go component, that's key price, the me we so And component. our And brands, people billion-dollar but not on it's big value, heard core news about to really talking to

important they a when think that to it waste. one you feed really do the want feel most can't and is it. and they their And about what pinch, the to family families, consumers is afford have things If has of

talking us so environment. hear that and taste a lot things like And news in about this you'll

question. And appreciate the so I

think one. a really I it's good

volume talking is the about it us hear that's important to premiumization the same You job time. because increasing do, obviously, at of the most but opposite not

Operator

last will from Carey today from Fargo. question Chris Our come Wells

Christopher Carey

couple just of up I'll it follow-ups. with wrap a

remarks, full did Kofi, gross the expansion So year. compares number in you you gross highlight, QX. In margin one, said prepared on for margin, harder that however, the

couponing be as that, year start balanced I Should fiscal in couponing more doing would but more we comps missed improves to year-over-year becomes be get to one. gross be You'll number margins that if Apologies QX. down easier? the and expect that

just has sales -- the outlook. morning the the or in And implied this throughout debate acceleration the then Q&A second, recurring been

think to SRM, of you're your relative the If acceleration other in these for outlook would the how the you and frame items, items that you just couponing expecting contribution about perhaps year?

Kofi Bruce

profit Okay. year Well, -- sales. price/mix net would detailed component much have just to be profit is the on comparison more quarter headwind. the same expect And been, then compared operating the effectively, too I prepared already get I not start. let which comparison QX, me that, on Jeff say to I'm will compared of prior we'd mentioned obviously. than a

subsequent I'm below So we of that. detailed our QX going not quarters. more to complexion be the to the lower than too do expect get much

our that guidance implied use think expectations we're and of I in Obviously, is levers toolkit. our all the our going to SRM

think always environment. SRM. everything the this that mix So the to point, playing a of of But the And optimization be front levers focus center from we on -- we're and certainly, I price in using lot there's is of important as focus will and trade to the are component that.

we work to I in lapped we about price/mix sales too complexion full of the of all this year. prior has year. SRM as the totality the get can't more expect But as continue a point. at prices through less clear, pricing its Obviously, we've from specific components year, or been next would driver use much this to it's the and toolkit been

Jeff Siemon

Okay.

appreciate there. it up have and always, us. to day questions questions I if and you need attention. for wrap throughout the good you follow-ups get think that to available And more as we'll and go everyone's time we're ahead I

up today, catching look to time and the appreciate soon. forward we I So

Operator

today's for conference your call. concludes participation. you Thank This

You now disconnect. may

General Mills (GIS) 26 Jun 242024 Q4 Earnings call transcript