UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM

10-K

☑

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR

THE FISCAL YEAR ENDED

MAY 28, 2023

☐

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM __________ TO __________

Commission file number:

001-01185

________________

GENERAL MILLS, INC.

(Exact name of registrant as specified in its charter)

Delaware

41-0274440

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

Number One General Mills Boulevard

Minneapolis

,

Minnesota

55426

(Address of principal executive offices)

(Zip Code)

(763)

764-7600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange

on which registered

Common Stock, $.10 par value

GIS

New York Stock Exchange

0.125% Notes due 2025

GIS25A

New York Stock Exchange

0.450% Notes due 2026

GIS26

New York Stock Exchange

1.500% Notes due 2027

GIS27

New York Stock Exchange

3.907% Notes due 2029

GIS29

New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes

☑

 No

☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes

☐

No

☑

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities

Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),

and (2) has been subject to such filing requirements for the past 90 days. 

Yes

☑

 No

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted

pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to

submit such files).

Yes

☑

 No

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller

reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller

reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company 

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness

of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered

public accounting firm that prepared or issued its audit report.

☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the

registrant included in the filing reflect the correction of an error to previously issued financial statements.

☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based

compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b).

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes

☐

 No

☑

Aggregate market value of Common Stock held by non-affiliates of the registrant, based on the closing price of $82.97 per share as

reported on the New York Stock Exchange on November 27, 2022 (the last business day of the registrant’s most recently completed

second fiscal quarter): $

48,920

 million.

Number of shares of Common Stock outstanding as of June 14, 2023:

585,182,745

 (excluding

169,430,583

 shares held in the

treasury).

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Proxy Statement for its 2023 Annual Meeting of Shareholders are incorporated by reference into Part III.

3

Table of Contents

Page

Part I

Item 1

4

Item 1A

8

Item 1B

13

Item 2

13

Item 3

14

Item 4

14

Part II

Item 5

14

Item 7

15

Item 7A

37

Item 8

39

Item 9

88

Item 9A

89

Item 9B

89

Item 9C

89

Part III

Item 10

89

Item 11

89

Item 12

90

Item 13

90

Item 14

90

Part IV

Item 15

91

Item 16

94

95

4

PART I

ITEM 1 - Business 

COMPANY OVERVIEW

For more than 150 years, General Mills has been making food the world loves. We are a leading global manufacturer and marketer of

branded consumer foods with more than 100 brands in 100 countries across six continents. In addition to our consolidated operations,

we have 50 percent interests in two strategic joint ventures that manufacture and market food products sold in approximately 130

countries worldwide.

We manage and review the financial results of our business under four operating segments: North America Retail; International; Pet;

and North America Foodservice. See Management’s Discussion and Analysis of Financial Condition and Results of Operations

(MD&A) in Item 7 of this report for a description of our segments.

We offer a variety of human and pet food products that provide great taste, nutrition, convenience, and value for consumers around the

world. Our business is focused on the following large, global categories:

●

snacks, including grain, fruit and savory snacks, nutrition bars, and frozen hot snacks;

●

ready-to-eat cereal;

●

convenient meals, including meal kits, ethnic meals, pizza, soup, side dish mixes, frozen breakfast, and frozen entrees;

●

wholesome natural pet food;

●

refrigerated and frozen dough;

●

baking mixes and ingredients;

●

yogurt; and

●

super-premium ice cream.

Our Cereal Partners Worldwide (CPW) joint venture with Nestlé S.A. (Nestlé) competes in the ready-to-eat cereal category in markets

outside North America, and our Häagen-Dazs Japan, Inc. (HDJ) joint venture competes in the super-premium ice cream category in

Japan. For net sales contributed by each class of similar products, please see Note 17 to the Consolidated Financial Statements in Item

8 of this report.

The terms “General Mills,” “Company,” “registrant,” “we,” “us,” and “our” mean General Mills, Inc. and all subsidiaries included in

the Consolidated Financial Statements in Item 8 of this report unless the context indicates otherwise.

Certain terms used throughout this report are defined in a glossary in Item 8 of this report.

Customers

Our primary customers are grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount

chains, e-commerce retailers, commercial and noncommercial foodservice distributors and operators, restaurants, convenience stores,

and pet specialty stores. We generally sell to these customers through our direct sales force. We use broker and distribution

arrangements for certain products and to serve certain types of customers and certain markets. For further information on our customer

credit and product return practices, please refer to Note 2 to the Consolidated Financial Statements in Item 8 of this report. During

fiscal 2023, Walmart Inc. and its affiliates (Walmart) accounted for 21 percent of our consolidated net sales and 28 percent of net sales

of our North America Retail segment. No other customer accounted for 10 percent or more of our consolidated net sales. For further

information on significant customers, please refer to Note 8 to the Consolidated Financial Statements in Item 8 of this report.

Competition

The human and pet food categories are highly competitive, with numerous manufacturers of varying sizes in the United States and

throughout the world. The categories in which we participate also are very competitive. Our principal competitors in these categories

are manufacturers, as well as retailers with their own branded products. Competitors market and sell their products through brick-and-

mortar stores and e-commerce. All our principal competitors have substantial financial, marketing, and other resources. Competition

in our product categories is based on product innovation, product quality, price, brand recognition and loyalty, effectiveness of

marketing, promotional activity, convenient ordering and delivery to the consumer, and the ability to identify and satisfy consumer

preferences. Our principal strategies for competing in each of our segments include unique consumer insights, effective customer

relationships, superior product quality, innovative advertising, product promotion, product innovation aligned with consumers’ needs,

an efficient supply chain, and price. In most product categories, we compete not only with other widely advertised, branded products,

but also with regional brands and with generic and private label products that are generally sold at lower prices. Internationally, we

compete with both multi-national and local manufacturers, and each country includes a unique group of competitors.

5

Raw materials, ingredients, and packaging

The principal raw materials that we use are grains (wheat, oats, and corn), dairy products, meat, vegetable oils, sugar, vegetables,

fruits, nuts, and other agricultural products. We also use substantial quantities of carton board, corrugated, plastic, and metal

packaging materials, operating supplies, and energy. Most of these inputs for our domestic and Canadian operations are purchased

from suppliers in the United States. In our other international operations, inputs that are not locally available in adequate supply may

be imported from other countries. The cost of these inputs may fluctuate widely due to external conditions such as weather, climate

change, product scarcity, limited sources of supply, commodity market fluctuations, currency fluctuations, trade tariffs, pandemics,

war, and changes in governmental agricultural and energy policies and regulations. We believe that we will be able to obtain an

adequate supply of needed inputs. Occasionally and where possible, we make advance purchases of items significant to our business

in order to ensure continuity of operations. Our objective is to procure materials meeting both our quality standards and our production

needs at price levels that allow a targeted profit margin. Since these inputs generally represent the largest variable cost in

manufacturing our products, to the extent possible, we often manage the risk associated with adverse price movements for some inputs

using a variety of risk management strategies. We also have a grain merchandising operation that provides us efficient access to, and

more informed knowledge of, various commodity markets, principally wheat and oats. This operation holds physical inventories that

are carried at net realizable value and uses derivatives to manage its net inventory position and minimize its market exposures.

TRADEMARKS AND PATENTS

Our products are marketed under a variety of valuable trademarks. Some of the more important trademarks used in our global

operations (set forth in italics in this report) include

Annie’s

,

 Betty Crocker

,

Bisquick

,

Blue Buffalo

,

Blue Basics

,

Blue Freedom

,

Bugles

,

Cascadian

Farm

,

Cheerios

,

Chex

,

Cinnamon Toast Crunch

,

Cocoa Puffs

,

Cookie Crisp

,

EPIC

,

Fiber One

,

Fruit by the Foot

,

Fruit Gushers

,

Fruit Roll-Ups

,

Gardetto's

,

Gold Medal

,

Golden Grahams

,

Häagen-Dazs

,

Kitano

,

Kix

,

Lärabar

,

Latina

,

Lucky

Charms

,

Muir Glen

,

Nature Valley

,

Nudges, Oatmeal Crisp

,

Old El Paso

,

Pillsbury

,

Progresso

,

Raisin Nut Bran

,

Total

,

Top Chews

Naturals, Totino’s

,

Trix

,

True Chews, Wanchai Ferry

,

Wheaties

,

Wilderness

, and

Yoki

. We protect these trademarks as appropriate

through registrations in the United States and other jurisdictions. Depending on the jurisdiction, trademarks are generally valid as long

as they are in use or their registrations are properly maintained and they have not been found to have become generic. Registrations of

trademarks can also generally be renewed indefinitely for as long as the trademarks are in use. 

Some of our products are marketed under or in combination with trademarks that have been licensed from others for both long-

standing products (e.g.,

Reese’s Puffs

 for cereal,

Green Giant

for vegetables in certain countries, and

Yoplait

and related brands for

fresh dairy in the United States and Canada), and shorter term promotional products (e.g., fruit snacks sold under various third party

equities).

Our cereal trademarks are licensed to CPW and may be used in association with the

Nestlé

trademark. Nestlé licenses certain of its

trademarks to CPW, including the

Nestlé

 and

Uncle Toby’s

 trademarks. The

Häagen-Dazs

 trademark is licensed royalty-free and

exclusively to Nestlé and authorized sublicensees for ice cream and other frozen dessert products in the United States and Canada. 

The

Häagen-Dazs

 trademark is also licensed to HDJ in Japan. The

Pillsbury

 brand and the

Pillsbury Doughboy

 character are subject

to an exclusive, royalty-free license that was granted to a third party and its successors in the dessert mix and baking mix categories in

the United States and under limited circumstances in Canada and Mexico. 

We continue our focus on developing and marketing innovative, proprietary products, many of which use proprietary expertise,

recipes and formulations. We consider the collective rights under our various patents, which expire from time to time, a valuable asset,

but we do not believe that our businesses are materially dependent upon any single patent or group of related patents.

SEASONALITY

In general, demand for our products is evenly balanced throughout the year. However, within our North America Retail segment

demand for refrigerated dough, frozen baked goods, and baking products is stronger in the fourth calendar quarter. Demand for

Progresso

soup is higher during the fall and winter months. Within our International segment, demand for

Häagen-Dazs

ice cream is

higher during the summer months and demand for baking mix increases during winter months. Due to the offsetting impact of these

demand trends, as well as the different seasons in the northern and southern hemispheres, our International segment’s net sales are

generally evenly balanced throughout the year.

QUALITY AND SAFETY REGULATION

The manufacture and sale of human and pet food products is highly regulated. In the United States, our activities are subject to

regulation by various federal government agencies, including the Food and Drug Administration, Department of Agriculture, Federal

Trade Commission, Department of Commerce, Occupational Safety and Health Administration, and Environmental Protection

Agency, as well as various federal, state, and local agencies relating to the production, packaging, labelling, marketing, storage,

distribution, quality, and safety of food and pet products and the health and safety of our employees. Our business is also regulated by

similar agencies outside of the United States.

6

ENVIRONMENTAL MATTERS

As of May 28, 2023, we were involved with two response actions associated with the alleged or threatened release of hazardous

substances or wastes located in Minneapolis, Minnesota and Moonachie, New Jersey. 

Our operations are subject to the Clean Air Act, Clean Water Act, Resource Conservation and Recovery Act, Comprehensive

Environmental Response, Compensation, and Liability Act, and the Federal Insecticide, Fungicide, and Rodenticide Act, and all

similar state, local, and foreign environmental laws and regulations applicable to the jurisdictions in which we operate.

Based on current facts and circumstances, we believe that neither the results of our environmental proceedings nor our compliance in

general with environmental laws or regulations will have a material adverse effect upon our capital expenditures, earnings, or

competitive position.

HUMAN CAPITAL MANAGEMENT 

Recruiting, developing, engaging, and protecting our workforce is critical to executing our strategy and achieving business success. As

of May 28, 2023, we had approximately 34,000 employees around the globe, with approximately 16,000 in the U.S. and

approximately 18,000 located in our markets outside of the U.S. Our workforce is divided between approximately 13,000 employees

dedicated to the production of our products and approximately 21, 000 non-production employees. 

The efficient production of high-quality products and successful execution of our strategy requires a talented, skilled, and engaged

team of employees. We work to equip our employees with critical skills and expand their contributions over time by providing a range

of training and career development opportunities, including hands-on experiences via challenging work assignments and job rotations,

coaching and mentoring opportunities, and training programs. To foster employee engagement and commitment, we follow a robust

process to listen to employees, take action, and measure our progress with on-going employee conversations, transparent

communications, and employee engagement surveys.

We believe that fostering a culture of inclusion and belonging strengthens our ability to recruit talent and allows all of our employees

to thrive and succeed. We actively cultivate a culture that acknowledges, respects, and values all dimensions of diversity – including

gender, race, sexual orientation, ability, backgrounds, and beliefs. Ensuring diversity of input and perspectives is core to our business

strategy, and we are committed to recruiting, retaining, developing, and advancing a workforce that reflects the diversity of the

consumers we serve. This commitment starts with our company leadership where women represent approximately 47 percent of our

officer and director population, and approximately 22 percent of our officers and directors are racially or ethnically diverse. We

embed our culture of inclusion and belonging into our day-to-day ways of working through a number of programs to foster discussion,

build empathy, and increase understanding.

We are committed to maintaining a safe and secure workplace for our employees. We set specific safety standards to identify and

manage critical risks. We use global safety management systems and employee training to ensure consistent implementation of safety

protocols and accurate measurement and tracking of incidents. To provide a safe and secure working environment for our employees,

we prohibit workplace discrimination, and we do not tolerate abusive conduct or harassment. Our attention to the health and safety of

our workforce extends to the workers and communities in our supply chain. We believe that respect for human rights is fundamental to

our strategy and to our commitment to ethical business conduct. 

INFORMATION ABOUT OUR EXECUTIVE OFFICERS

The section below provides information regarding our executive officers as of June 28, 2023.

Kofi A. Bruce

, age 53, is Chief Financial Officer. Mr. Bruce joined General Mills in 2009 as Vice President, Treasurer after serving in

a variety of senior management positions with Ecolab and Ford Motor Company. He served as Treasurer until 2010 when he was

named Vice President, Finance for Yoplait. Mr. Bruce reassumed his role as Vice President, Treasurer from 2012 until 2014 when he

was named Vice President, Finance for Convenience Stores & Foodservice. He was named Vice President, Controller in 2017, Vice

President, Financial Operations in September 2019, and to his present position in February 2020.

Paul J. Gallagher

,

age

55, is Chief Supply Chain Officer. Mr. Gallagher joined General Mills in April 2019 as Vice President, North

America Supply Chain from Diageo plc. He began his career at Diageo where he spent 25 years serving in a variety of leadership roles

in manufacturing, procurement, planning, customer service, and engineering before becoming President, North America Supply from

2013 to March 2019. He was named to his current position in July 2021.

Jeffrey L. Harmening

, age 56, is Chairman of the Board and Chief Executive Officer. Mr. Harmening joined General Mills in 1994

and served in various marketing roles in the Betty Crocker, Yoplait, and Big G cereal divisions. He was named Vice President,

7

Marketing for CPW in 2003 and Vice President of the Big G cereal division in 2007. In 2011, he was promoted to Senior Vice

President for the Big G cereal division. Mr. Harmening was appointed Senior Vice President, Chief Executive Officer of CPW in

2012. Mr. Harmening returned from CPW in 2014 and was named Executive Vice President, Chief Operating Officer, U.S. Retail. He

became President, Chief Operating Officer in 2016. He was named Chief Executive Officer in 2017 and Chairman of the Board in

2018. Mr. Harmening is a director of The Toro Company.

Dana M. McNabb

,

age 47,

is Chief Strategy & Growth Officer. Ms. McNabb joined General Mills in 1999 and held a variety of

marketing roles in Cereal, Snacks, Meals, and New Products before becoming Vice President, Marketing for CPW in 2011 and Vice

President, Marketing for the Circle of Champions Business Unit in 2015. She became President, U.S. Cereal Operating Unit in 2016,

Group President, Europe & Australia in January 2020, and was named to her present position in July 2021.

Jaime Montemayor

, age 59, is Chief Digital and Technology Officer. He spent 21 years at PepsiCo, Inc., serving in roles of

increasing responsibility, including most recently as Senior Vice President and Chief Information Officer of PepsiCo’s Americas

Foods segment from 2013 to 2015, and Senior Vice President and Chief Information Officer, Digital Innovation, Data and Analytics,

PepsiCo from 2015 to 2016. Mr. Montemayor served as Chief Technology Officer of 7-Eleven Inc. in 2017. He assumed his current

role in February 2020 after founding and operating a digital technology consulting company from 2017 until January 2020.

Jon J. Nudi

, age 53, is Group President, North America Retail. Mr. Nudi joined General Mills in 1993 as a Sales Representative and

held a variety of roles in Consumer Foods Sales. In 2005, he moved into marketing roles in the Meals division and was elected Vice

President in 2007. Mr. Nudi was named Vice President; President, Snacks, in 2010, Senior Vice President, President,

Europe/Australasia in 2014, and Senior Vice President; President, U.S. Retail in 2016. He was named to his present position in 2017.

Shawn P. O’Grady

, age 59, is Group President, North America Foodservice. Mr. O’Grady joined General Mills in 1990 and held

several marketing roles in the Snacks, Meals, and Big G cereal divisions. He was promoted to Vice President in 1998 and held

marketing positions in the Betty Crocker and Pillsbury USA divisions. In 2004, he moved into Consumer Foods Sales, becoming Vice

President, President, U.S. Retail Sales in 2007, Senior Vice President, President, Consumer Foods Sales Division in 2010, Senior Vice

President, President, Sales & Channel Development in 2012, and Group President, Convenience Stores & Foodservice in 2017. He

was named to his current position in December 2021.

Mark A. Pallot,

age 50, is Vice President, Chief Accounting Officer. Mr. Pallot joined General Mills in 2007 and served as

Director,

Financial Reporting until 2017, when he was named Vice President, Assistant Controller. He was elected to his present position in

February 2020. Prior to joining General Mills, Mr. Pallot held accounting and financial reporting positions at Residential Capital,

LLC, Metris, Inc., CIT Group Inc., and Ernst & Young, LL

P.

Bethany Quam

, age 52, is Group President, Pet. Ms. Quam joined General Mills in 1993 and held a variety of positions before

becoming Vice President, Strategic Planning in 2007. She was promoted to Vice President, Field Sales, Channels in 2012, Vice

President; President, Convenience Stores & Foodservice in 2014, and Senior Vice President; President, Europe & Australia in 2016,

and Group President; Europe & Australia in 2017. She was named to her current position in October 2019.

Lanette Shaffer Werner

, age 52, is Chief Innovation, Technical and Quality Officer. Ms. Shaffer Werner joined General Mills in 1995

and held various R&D roles in Frozen Desserts and Pillsbury before serving as Director of One Global Dairy and Sr. Director for One

Global Cereal. In July 2021, Ms. Shaffer Werner was named as Vice President, Innovation, Technical and Quality, Meals & Baking

Solutions. She was named to her present position in June 2023.

Sean Walker

,

age 57, is Group President, International. Mr. Walker joined General Mills in 1989 and held a variety of positions

before becoming Vice President, President of Latin America in 2009. He was named Senior Vice President, President Latin America

in 2012, Senior Vice President, Corporate Strategy in 2016, and Group President, Asia & Latin America in February 2019. He was

named to his current position in July 2021.

Jacqueline Williams-Roll

, age 54, is Chief Human Resources Officer. Ms. Williams-Roll joined General Mills in 1995. In this

capacity, she also has responsibility for Corporate Communications. She held human resources leadership roles in Supply Chain,

Finance, Marketing, and Organization Effectiveness, and has also worked a large part of her career on businesses outside of the United

States. She was named Vice President, Human Resources, International in 2010, and then promoted to Senior Vice President, Human

Resources Operations in 2013. She was named to her present position in 2014. Prior to joining General Mills, she held sales and

management roles with Jenny Craig International.

Karen Wilson Thissen

, age 56, is General Counsel and Secretary. Ms. Wilson Thissen joined General Mills in June 2022. Prior to

joining General Mills, she spent 17 years at Ameriprise Financial, Inc., serving in roles of increasing responsibility, including most

recently as Executive Vice President and General Counsel from 2017 to June 2022, and Executive Vice President and Deputy General

Counsel from 2014 to 2017. Before joining Ameriprise Financial, Inc., she was a partner at the law firm of Faegre & Benson LLP

(now Faegre Drinker Biddle & Reath LLP).

8

WEBSITE ACCESS

Our website is https://www.generalmills.com.

We make available, free of charge in the “Investors” portion of this website, annual

reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or

furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (1934 Act) as soon as reasonably practicable after

we electronically file such material with, or furnish it to, the Securities and Exchange Commission (SEC). All such filings are

available on the SEC’s website at https://www.sec.gov. Reports of beneficial ownership filed pursuant to Section 16(a) of the 1934

Act are also available on our website.

ITEM 1A - Risk Factors

Our business is subject to various risks and uncertainties. Any of the risks described below could materially, adversely affect our

business, financial condition, and results of operations.

Business and Industry Risks

The categories in which we participate are very competitive, and if we are

not able to compete effectively, our results of

operations could be adversely

affected.

The human and pet food categories in which we participate are very competitive. Our principal competitors in these categories are

manufacturers, as well as retailers with their own branded and private label products. Competitors market and sell their products

through brick-and-mortar stores and e-commerce. All of our principal competitors have substantial financial, marketing, and other

resources. In most product categories, we compete not only with other widely advertised branded products, but also with regional

brands and with generic and private label products that are generally sold at lower prices. Competition in our product categories is

based on product innovation, product quality, price, brand recognition and loyalty, effectiveness of marketing, promotional activity,

convenient ordering and delivery to the consumer, and the ability to identify and satisfy consumer preferences. If our large

competitors were to seek an advantage through pricing or promotional changes, we could choose to do the same, which could

adversely affect our margins and profitability. If we did not do the same, our revenues and market share could be adversely affected.

Our market share and revenue growth could also be adversely impacted if we are not successful in introducing innovative products in

response to changing consumer demands or by new product introductions of our competitors. If we are unable to build and sustain

brand equity by offering recognizably superior product quality, we may be unable to maintain premium pricing over generic and

private label products.

We may be unable to maintain our profit margins in the face of a consolidating retail environment.

There has been significant consolidation in the grocery industry, resulting in customers with increased purchasing power. In addition,

large retail customers may seek to use their position to improve their profitability through improved efficiency, lower pricing,

increased reliance on their own brand name products, increased emphasis on generic and other economy brands, and increased

promotional programs. If we are unable to use our scale, marketing expertise, product innovation, knowledge of consumers’ needs,

and category leadership positions to respond to these demands, our profitability and volume growth could be negatively impacted. In

addition, the loss of any large customer could adversely affect our sales and profits. In fiscal 2023, Walmart accounted for 21 percent

of our consolidated net sales and 28 percent of net sales of our North America Retail segment. For more information on significant

customers, please see Note 8 to the Consolidated Financial Statements in Item 8 of this report.

Price changes for the commodities we depend on for raw materials, packaging,

and energy may adversely affect our

profitability.

The principal raw materials that we use are commodities that experience price volatility caused by external conditions such as

weather, climate change, product scarcity, limited sources of supply, commodity market fluctuations, currency fluctuations, trade

tariffs, pandemics, war (including international sanctions imposed on Russia for its invasion of Ukraine), and changes in governmental

agricultural and energy policies and regulations. Commodity prices have become, and may continue to be, more volatile. Commodity

price changes may result in unexpected increases in raw material, packaging, energy, and transportation costs. If we are unable to

increase productivity to offset these increased costs or increase our prices, we may experience reduced margins and profitability. We

do not fully hedge against changes in commodity prices, and the risk management procedures that we do use may not always work as

we intend. 

9

Concerns with the safety and quality of our products could cause consumers to

avoid certain products or ingredients.

We could be adversely affected if consumers in our principal markets lose confidence in the safety and quality of certain of our

products or ingredients. Adverse publicity about these types of concerns, whether or not valid, may discourage consumers from

buying our products or cause production and delivery disruptions.

We may be unable to anticipate changes in consumer preferences and trends,

which may result in decreased demand for our

products.

Our success depends in part on our ability to anticipate the tastes, eating habits, and purchasing behaviors of consumers and to offer

products that appeal to their preferences in channels where they shop. Consumer preferences and category-level consumption may

change from time to time and can be affected by a number of different trends and other factors. If we fail to anticipate, identify or

react to these changes and trends, such as adapting to emerging e-commerce channels, or to introduce new and improved products on a

timely basis, we may experience reduced demand for our products, which would in turn cause our revenues and profitability to suffer.

Similarly, demand for our products could be affected by consumer concerns regarding the health effects of ingredients such as sodium,

trans fats, genetically modified organisms, sugar, processed wheat, grain-free or legume-rich pet food, or other product ingredients or

attributes.

We may be unable to grow our market share or add products that are in faster

growing and more profitable categories.

The food industry’s growth potential is constrained by population growth. Our success depends in part on our ability to grow our

business faster than populations are growing in the markets that we serve. One way to achieve that growth is to enhance our portfolio

by adding innovative new products in faster growing and more profitable categories. Our future results will also depend on our ability

to increase market share in our existing product categories. If we do not succeed in developing innovative products for new and

existing categories, our growth and profitability could be adversely affected.

Our results may be negatively impacted if consumers do not maintain their favorable perception of our brands.

Maintaining and continually enhancing the value of our many iconic brands is critical to the success of our business. The value of our

brands is based in large part on the degree to which consumers react and respond positively to these brands. Brand value could

diminish significantly due to a number of factors, including consumer perception that we have acted in an irresponsible manner,

adverse publicity about our products, our failure to maintain the quality of our products, the failure of our products to deliver

consistently positive consumer experiences, concerns about food safety, or our products becoming unavailable to consumers.

Consumer demand for our products may also be impacted by changes in the level of advertising or promotional support. The use of

social and digital media by consumers, us, and third parties increases the speed and extent that information or misinformation and

opinions can be shared. Negative posts or comments about us, our brands, or our products on social or digital media could seriously

damage our brands and reputation. If we do not maintain the favorable perception of our brands, our business results could be

negatively impacted.

Operating Risks

If we are not efficient in our production, our profitability could suffer as a

result of the highly competitive environment in

which we operate.

Our future success and earnings growth depend in part on our ability to be efficient in the production and manufacture of our products

in highly competitive markets. Gaining additional efficiencies may become more difficult over time. Our failure to reduce costs

through productivity gains or by eliminating redundant costs resulting from acquisitions or divestitures could adversely affect our

profitability and weaken our competitive position. Many productivity initiatives involve complex reorganization of manufacturing

facilities and production lines. Such manufacturing realignment may result in the interruption of production, which may negatively

impact product volume and margins. We periodically engage in restructuring and cost savings initiatives designed to increase our

efficiency and reduce expenses. If we are unable to execute those initiatives as planned, we may not realize all or any of the

anticipated benefits, which could adversely affect our business and results of operations.

Disruption of our supply chain could adversely affect our business.

Our ability to make, move, and sell products is critical to our success. Damage or disruption to raw material supplies or our

manufacturing or distribution capabilities due to weather, climate change, natural disaster, fire, terrorism, cyber-attack, pandemics,

war, governmental restrictions or mandates, labor shortages, strikes, import/export restrictions, or other factors could impair our

ability to manufacture or sell our products. Many of our product lines are manufactured at a single location or sourced from a single

supplier. The failure of third parties on which we rely, including those third parties who supply our ingredients, packaging, capital

equipment and other necessary operating materials, contract manufacturers, commercial transport, distributors, contractors, and

10

external business partners, to meet their obligations to us, or significant disruptions in their ability to do so, may negatively impact our

operations. Our suppliers’ policies and practices can damage our reputation and the quality and safety of our products. Disputes with

significant suppliers, including disputes regarding pricing or performance, could adversely affect our ability to supply products to our

customers and could materially and adversely affect our sales, financial condition, and results of operations. Failure to take adequate

steps to mitigate the likelihood or potential impact of such events, or to effectively manage such events if they occur, particularly

when a product is sourced from a single location or supplier, could adversely affect our business and results of operations, as well as

require additional resources to restore our supply chain.

Short term or sustained increases in consumer demand at our retail customers may exceed our production capacity or otherwise strain

our supply chain. Our failure to meet the demand for our products could adversely affect our business and results of operations.

Our international operations are subject to political and economic risks.

In fiscal 2023, 19 percent of our consolidated net sales were generated outside of the United States. We are accordingly subject to a

number of risks relating to doing business internationally, any of which could significantly harm our business. These risks include:

●

political and economic instability;

●

exchange controls and currency exchange rates;

●

tariffs on products and ingredients that we import and export;

●

nationalization or government control of operations;

●

compliance with anti-corruption regulations;

●

foreign tax treaties and policies; and

●

restriction on the transfer of funds to and from foreign countries, including potentially negative tax consequences.

Our financial performance on a U.S. dollar denominated basis is subject to fluctuations in currency exchange rates. These fluctuations

could cause material variations in our results of operations. Our principal exposures are to the Australian dollar, Brazilian real, British

pound sterling, Canadian dollar, Chinese renminbi, euro, Japanese yen, Mexican peso, and Swiss franc. From time to time, we enter

into agreements that are intended to reduce the effects of our exposure to currency fluctuations, but these agreements may not be

effective in significantly reducing our exposure.

A strengthening in the U.S. dollar relative to other currencies in the countries in which we operate would negatively affect our

reported results of operations and financial results due to currency translation losses and currency transaction losses.

Our business operations could be disrupted if our information technology systems fail to perform adequately or are breached.

Information technology serves an important role in the efficient and effective operation of our business. We rely on information

technology networks and systems, including the internet, to process, transmit, and store electronic information to manage a variety of

business processes and to comply with regulatory, legal, and tax requirements. Our information technology systems and infrastructure

are critical to effectively manage our key business processes including digital marketing, order entry and fulfillment, supply chain

management, finance, administration, and other business processes. These technologies enable internal and external communication

among our locations, employees, suppliers, customers, and others and include the receipt and storage of personal information about

our employees, consumers, and proprietary business information. Our information technology systems, some of which are dependent

on services provided by third parties, may be vulnerable to damage, interruption, or shutdown due to any number of causes such as

catastrophic events, natural disasters, fires, power outages, systems failures, telecommunications failures, security breaches, computer

viruses, hackers, employee error or malfeasance, and other causes. Increased cyber-security threats pose a potential risk to the security

and viability of our information technology systems, as well as the confidentiality, integrity, and availability of the data stored on

those systems. The failure of our information technology systems to perform as we anticipate could disrupt our business and result in

transaction errors, processing inefficiencies, data loss, legal claims or proceedings, regulatory penalties, and the loss of sales and

customers. Any interruption of our information technology systems could have operational, reputational, legal, and financial impacts

that may have a material adverse effect on our business.

Our failure to successfully integrate acquisitions into our existing operations could adversely affect our financial results.

From time to time, we evaluate potential acquisitions or joint ventures that would further our strategic objectives. Our success

depends, in part, upon our ability to integrate acquired and existing operations. If we are unable to successfully integrate acquisitions,

our financial results could suffer. Additional potential risks associated with acquisitions include additional debt leverage, the loss of

key employees and customers of the acquired business, the assumption of unknown liabilities, the inherent risk associated with

entering a geographic area or line of business in which we have no or limited prior experience, failure to achieve anticipated synergies,

and the impairment of goodwill or other acquisition-related intangible assets.

11

Legal and Regulatory Risks

If our products become adulterated, misbranded, or mislabeled, we might

need to recall those items and may experience

product liability claims if

consumers or their pets are injured.

We may need to recall some of our products if they become adulterated, misbranded, or mislabeled. A widespread product recall could

result in significant losses due to the costs of a recall, the destruction of product inventory, and lost sales due to the unavailability of

product for a period of time. We could also suffer losses from a significant product liability judgment against us. A significant product

recall or product liability case could also result in adverse publicity, damage to our reputation, and a loss of consumer confidence in

our products, which could have an adverse effect on our business results and the value of our brands.

New regulations or regulatory-based claims could adversely affect our business.

Our facilities and products are subject to many laws and regulations administered by the United States Department of Agriculture, the

Federal Food and Drug Administration, the Occupational Safety and Health Administration, and other federal, state, local, and foreign

governmental agencies relating to the production, packaging, labelling, storage, distribution, quality, and safety of food products and

the health and safety of our employees. Our failure to comply with such laws and regulations could subject us to lawsuits,

administrative penalties, and civil remedies, including fines, injunctions, and recalls of our products. We advertise our products and

could be the target of claims relating to alleged false or deceptive advertising under federal, state, and foreign laws and regulations.

We may also be subject to new laws or regulations restricting our right to advertise our products, including restrictions on the audience

to whom products are marketed. Changes in laws or regulations that impose additional regulatory requirements on us could increase

our cost of doing business or restrict our actions, causing our results of operations to be adversely affected.

We are subject to various federal, state, local, and foreign environmental laws and regulations. Our failure to comply with

environmental laws and regulations could subject us to lawsuits, administrative penalties, and civil remedies. We are currently party to

a variety of environmental remediation obligations. Due to regulatory complexities, uncertainties inherent in litigation, and the risk of

unidentified contaminants on current and former properties of ours, the potential exists for remediation, liability, indemnification, and

compliance costs to differ from our estimates. We cannot guarantee that our costs in relation to these matters, or compliance with

environmental laws in general, will not exceed our established liabilities or otherwise have an adverse effect on our business and

results of operations.

Climate change and other sustainability matters could adversely affect our business.

There is growing concern that carbon dioxide and other greenhouse gases in the earth’s atmosphere may have an adverse impact on

global temperatures, weather patterns, and the frequency and severity of extreme weather and natural disasters. If such climate change

has a negative effect on agricultural productivity, we may experience decreased availability and higher pricing for certain commodities

that are necessary for our products. Increased frequency or severity of extreme weather could also impair our production capabilities,

disrupt our supply chain, impact demand for our products, and increase our insurance and other operating costs. Increasing concern

over climate change or other sustainability issues also may adversely impact demand for our products due to changes in consumer

preferences or negative consumer reaction to our commitments and actions to address these issues. We may also become subject to

additional legal and regulatory requirements relating to climate change or other sustainability issues, including greenhouse gas

emission regulations (e.g., carbon taxes), energy policies, sustainability initiatives (e.g., single-use plastic limits), and disclosure

obligations. If additional legal and regulatory requirements are enacted and are more aggressive than the sustainability measures that

we are currently undertaking to reduce our emissions and improve our energy efficiency and other sustainability goals, or if we chose

to take actions to achieve more aggressive goals, we may experience significant increases in our costs of operations.

We have announced goals and commitments to reduce our carbon footprint. If we fail to achieve or improperly report on our progress

toward achieving our carbon emissions reduction goals and commitments, then the resulting negative publicity could harm our

reputation and adversely affect demand for our products.

Financial and Economic Risks

Volatility in the market value of derivatives we use to manage exposures to fluctuations in commodity prices may cause

volatility in our gross margins and net earnings.

We utilize derivatives to manage price risk for some of our principal ingredient and energy costs, including grains (oats, wheat, and

corn), oils (principally soybean), dairy products, natural gas, and diesel fuel. Changes in the values of these derivatives are recorded in

earnings currently, which may result in volatility in both gross margin and net earnings. These gains and losses are reported in cost of

sales in our Consolidated Statements of Earnings and in unallocated corporate items outside our segment operating results until we

utilize the underlying input in our manufacturing process, at which time the gains and losses are reclassified to segment operating

12

profit. We also record our grain inventories at net realizable value. We may experience volatile earnings as a result of these accounting

treatments.

Economic downturns could limit consumer demand for our products.

The willingness of consumers to purchase our products depends in part on local economic conditions. In periods of economic

uncertainty, consumers may purchase more generic, private label, and other economy brands and may forego certain purchases

altogether. In those circumstances, we could experience a reduction in sales of higher margin products or a shift in our product mix to

lower margin offerings. In addition, as a result of economic conditions or competitive actions, we may be unable to raise our prices

sufficiently to protect margins. Consumers may also reduce the amount of food that they consume away from home at customers that

purchase products from our North America Foodservice segment. Any of these events could have an adverse effect on our results of

operations.

We have a substantial amount of indebtedness, which could limit financing and other options and in some cases adversely

affect our ability to pay dividends.

As of May 28, 2023, we had total debt and noncontrolling interests of $12.0 billion. The agreements under which we have issued

indebtedness do not prevent us from incurring additional unsecured indebtedness in the future. Our level of indebtedness may limit

our:

●

ability to obtain additional financing for working capital, capital expenditures, or general corporate purposes, particularly if

the ratings assigned to our debt securities by rating organizations were revised downward; and

●

flexibility to adjust to changing business and market conditions and may make us more vulnerable to a downturn in general

economic conditions.

There are various financial covenants and other restrictions in our debt instruments and noncontrolling interests. If we fail to comply

with any of these requirements, the related indebtedness, and other unrelated indebtedness, could become due and payable prior to its

stated maturity and our ability to obtain additional or alternative financing may also be adversely affected.

Our ability to make scheduled payments on or to refinance our debt and other obligations will depend on our operating and financial

performance, which in turn is subject to prevailing economic conditions and to financial, business, and other factors beyond our

control.

We depend on stable, liquid and well-functioning capital and credit markets to fund our operations. Our financial performance, our

credit ratings, interest rates, the stability of financial institutions with which we partner, and the liquidity of the overall global capital

markets could affect our access to, and the availability, terms and conditions, and cost of capital.

Volatility in the securities markets, interest rates, and other factors could substantially increase our defined benefit

pension,

other postretirement benefit, and postemployment benefit costs.

We sponsor a number of defined benefit plans for employees in the United States, Canada, and various foreign locations, including

defined benefit pension, retiree health and welfare, severance, and other postemployment plans. Our major defined benefit pension

plans are funded with trust assets invested in a globally diversified portfolio of securities and other investments. Changes in interest

rates, mortality rates, health care costs, early retirement rates, investment returns, and the market value of plan assets can affect the

funded status of our defined benefit plans and cause volatility in the net periodic benefit cost and future funding requirements of the

plans. A significant increase in our obligations or future funding requirements could have a negative impact on our results of

operations and cash flows from operations.

A change in the assumptions regarding the future performance of our businesses or a different weighted-average cost of

capital used to value our reporting units or our indefinite-lived intangible assets could negatively affect our consolidated

results of operations and net worth.

As of May 28, 2023, we had $21. 2 billion of goodwill and indefinite-lived intangible assets. Goodwill for each of our reporting units

is tested for impairment annually and whenever events or changes in circumstances indicate that impairment may have occurred. We

compare the carrying value of the reporting unit, including goodwill, to the fair value of the reporting unit. If the fair value of the

reporting unit is less than the carrying value of the reporting unit, including goodwill, impairment has occurred. Our estimates of fair

value are determined based on a discounted cash flow model. Growth rates for sales and profits are determined using inputs from our

long-range planning process. We also make estimates of discount rates, perpetuity growth assumptions, market comparables, and other

factors. If current expectations for growth rates for sales and profits are not met, or other market factors and macroeconomic

conditions were to change, then our reporting units could become significantly impaired. While we currently believe that our goodwill

is not impaired, different assumptions regarding the future performance of our businesses could result in significant impairment losses.

13

We evaluate the useful lives of our intangible assets, primarily intangible assets associated with the

Blue Buffalo

,

Pillsbury

,

Totino’s

,

Old El Paso

,

 Progresso

,

Annie’s

,

Nudges

,

and

Häagen-Dazs

 brands, to determine if they are finite or indefinite-

lived. Reaching a determination on useful life requires significant judgments and assumptions regarding the future effects of

obsolescence, demand, competition, other economic factors (such as the stability of the industry, known technological advances,

legislative action that results in an uncertain or changing regulatory environment, and expected changes in distribution channels), the

level of required maintenance expenditures, and the expected lives of other related groups of assets.

Our indefinite-lived intangible assets are also tested for impairment annually and whenever events or changes in circumstances

indicate that impairment may have occurred. Our estimate of the fair value of the brands is based on a discounted cash flow model

using inputs including projected revenues from our long-range plan, assumed royalty rates which could be payable if we did not own

the brands, and a discount rate. If current expectations for growth rates for sales and margins are not met, or other market factors and

macroeconomic conditions were to change, then our indefinite-lived intangible assets could become significantly impaired.

Our

Progresso

,

EPIC

, and

Uncle Toby’s

 brands had risk of decreasing coverage and we continue to monitor these businesses.

For further information on goodwill and intangible assets, please refer to Note 6 to the Consolidated Financial Statements in Item 8 of

this report.

ITEM 1B - Unresolved Staff Comments 

None. 

ITEM 2 - Properties 

We own our principal executive offices and main research facilities, which are located in the Minneapolis, Minnesota metropolitan

area. We operate numerous manufacturing facilities and maintain many sales and administrative offices, warehouses, and distribution

centers around the world.

As of May 28, 2023, we operated 45 facilities for the production of a wide variety of food products. Of these facilities, 27 are located

in the United States, 6 in Latin America and Mexico, 5 in Europe/Australia, 4 in the Greater China region, 2 in Canada (1 of which is

leased) and 1 in the Asia/Middle East/Africa Region. The following is a list of the locations of our principal production facilities,

which primarily support the segment noted:

North America Retail

• St. Hyacinthe, Canada

• Irapuato, Mexico

• Buffalo, New York

• Covington, Georgia

• Reed City, Michigan

• Cincinnati, Ohio

• Belvidere, Illinois

• Fridley, Minnesota

• Wellston, Ohio

• Geneva, Illinois

• Hannibal, Missouri

• Murfreesboro, Tennessee

• Cedar Rapids, Iowa

• Albuquerque, New Mexico

• Milwaukee, Wisconsin

International

• Rooty Hill, Australia

• Recife, Brazil

• Arras, France

• Cambara, Brazil

• Guangzhou, China

• Labatut, France

• Campo Novo do Pareceis, Brazil

• Nanjing, China

• Inofita, Greece

• Paranavai, Brazil

• Sanhe, China

• Nashik, India

• Pouso Alegre, Brazil

• Shanghai, China

• San Adrian, Spain

Pet

• Richmond, Indiana

• Joplin, Missouri

North America Foodservice

• Chanhassen, Minnesota

• Joplin, Missouri

• St. Charles, Missouri

• Green Bay, Wisconsin

We operate numerous grain elevators in the United States in support of our domestic manufacturing activities. We also utilize

approximately 16 million square feet of warehouse and distribution space, nearly all of which is leased, that primarily supports our

14

North America Retail and Pet segments. We own and lease a number of dedicated sales and administrative offices around the world,

totaling approximately 2 million square feet. We have additional warehouse, distribution, and office space in our plant locations.

As part of our Häagen-Dazs business in our International segment we operate 450 (all leased) and franchise 382 branded ice cream

parlors in various countries around the world, all outside of the United States and Canada.

ITEM 3 - Legal Proceedings 

We are the subject of various pending or threatened legal actions in the ordinary course of our business. All such matters are subject to

many uncertainties and outcomes that are not predictable with assurance. In our opinion, there were no claims or litigation pending as

of May 28, 2023, that were reasonably likely to have a material adverse effect on our consolidated financial position or results of

operations. See the information contained under the section entitled “Environmental Matters” in Item 1 of this report for a discussion

of environmental matters in which we are involved.

ITEM 4 - Mine Safety Disclosures

None.

PART II

ITEM 5 - Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Our common stock is listed on the New York Stock Exchange under the symbol “GIS.” On June 15, 2023, there were approximately

24,200 record holders of our common stock. 

The following table sets forth information with respect to shares of our common stock that we purchased during the fiscal quarter

ended May 28, 2023:

Period

Total Number

of Shares

Purchased (a)

Average Price

Paid Per Share

Total Number of Shares

Purchased as Part of a

Publicly Announced

Program (b)

Maximum Number of

Shares that may yet

be Purchased

Under the Program (b)

February 27, 2023 -

April 2, 2023

1,338,293

$

79.20

1,338,293

86,503,364

April 3, 2023 -

April 30, 2023

846,538

86.88

846,538

85,656,826

May 1, 2023 -

May 28, 2023

793,957

89.58

793,957

84,862,869

Total

2,978,788

$

84.06

2,978,788

84,862,869

(a) The total number of shares purchased includes shares of common stock withheld for the payment of withholding taxes upon the

distribution of deferred option units.

(b) On June 27, 2022, our Board of Directors approved a new authorization for the repurchase of up to 100,000,000 shares of our

common stock and terminated the prior authorization. Purchases can be made in the open market or in privately negotiated

transactions, including the use of call options and other derivative instruments, Rule 10b5-1 trading plans, and accelerated

repurchase programs. The Board did not specify an expiration date for the authorization.

15

ITEM 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations

EXECUTIVE OVERVIEW

We are a global packaged foods company. We develop distinctive value-added food products and market them under unique brand

names. We work continuously to improve our core products and to create new products that meet consumers’ evolving needs and

preferences. In addition, we build the equity of our brands over time with strong consumer-directed marketing, innovative new

products, and effective merchandising. We believe our brand-building approach is the key to winning and sustaining leading share

positions in markets around the globe.

Our fundamental financial goal is to generate competitively differentiated returns for our shareholders over the long term. We believe

achieving that goal requires us to generate a consistent balance of net sales growth, margin expansion, cash conversion, and cash

return to shareholders over time.

Our long-term growth objectives are to deliver the following performance on average over time:

●

2 to 3 percent annual growth in organic net sales;

●

mid-single-digit annual growth in adjusted operating profit;

●

mid- to high-single-digit annual growth in adjusted diluted earnings per share (EPS);

●

free cash flow conversion of at least 95 percent of adjusted net earnings after tax; and

●

cash return to shareholders of 80 to 90 percent of free cash flow, including an attractive dividend yield.

We are executing our Accelerate strategy to drive sustainable, profitable growth and top-tier shareholder returns over the long term. 

The strategy focuses on four pillars to create competitive advantages and win: boldly building brands, relentlessly innovating,

unleashing our scale, and being a force for good. We are prioritizing our core markets, global platforms, and local gem brands that

have the best prospects for profitable growth, and we are committed to reshaping our portfolio with strategic acquisitions and

divestitures to further enhance our growth profile.

In fiscal 2023, we continued to successfully adapt to the dynamic operating environment and deliver strong performance. This

included growth in organic net sales, adjusted operating profit, and adjusted diluted EPS that was ahead of our initial targets. We

achieved each of the three priorities we established at the beginning of the year: 

We continued to compete effectively, including holding or growing market share in more than 50 percent of our global

priority businesses for the fifth consecutive year, when adjusting for an unusual competitive dynamic in cereal in fiscal 2022

and assessing that platform on a 2-year basis. We generated organic net sales growth across each of our four operating

segments, fueled by compelling brand building and innovation across our leading brands, and supported with strong levels of

net price realization in response to 13 percent input cost inflation.

We continued to invest for the future, including a 17 percent increase in media and advertising expense, a double-digit

increase in investment in our digital and technology capability, and a strong increase in capital investment related to new

growth capacity.

We continued to reshape our portfolio, including closing on one acquisition and two divestitures that further improved our

portfolio’s ability to generate profitable growth over the long term.

Our consolidated net sales for fiscal 2023 rose 6 percent to $20,094 million. On an organic basis, net sales increased 10 percent

compared to year-ago levels. Operating profit of $3,434 million was down 1 percent. Adjusted operating profit of $3,457 million

increased 8 percent on a constant-currency basis. Diluted EPS of $4.31 was down 2 percent compared to fiscal 2022 results. Adjusted

diluted EPS of $4.30 increased 10 percent on a constant-currency basis (See the “Non-GAAP Measures” section below for a

description of our use of measures not defined by generally accepted accounting principles (GAAP)).

Net cash provided by operations totaled $2,779 million in fiscal 2023, representing a conversion rate of 106 percent of net earnings,

including earnings attributable to redeemable and noncontrolling interests. This cash generation supported capital investments totaling

$690 million, and our resulting free cash flow was $2,089 million at a conversion rate of 80 percent of adjusted net earnings, including

earnings attributable to redeemable and noncontrolling interests. We returned cash to shareholders through dividends totaling $1,288

million and net share repurchases totaling $1,171 million. (See the “Non-GAAP Measures” section below for a description of our use

of measures not defined by GAAP).

A detailed review of our fiscal 2023 performance compared to fiscal 2022 appears below in the section titled “Fiscal 2023

Consolidated Results of Operations.” A detailed review of our fiscal 2022 performance compared to our fiscal 2021 performance is set

forth in Part II, Item 7 of our Form 10-K for the fiscal year ended May 30, 2022 under the caption “Management’s Discussion and

16

Analysis of Financial Condition and Results of Operations – Fiscal 2022 Results of Consolidated Operations,” which is incorporated

herein by reference.

In fiscal 202 4, we expect to build on our positive momentum and continue to advance our Accelerate strategy. Our key priorities are

to continue to compete effectively, to improve our supply chain efficiency, and to maintain our disciplined approach to capital

allocation. We expect the largest factors impacting our performance in fiscal 2024 will be the economic health of consumers, the

moderating rate of input cost inflation, and the increasing stability of the supply chain environment. We expect to drive organic net

sales growth in fiscal 2024 through strong marketing, innovation, in-store support, and net price realization generated through our

Strategic Revenue Management (SRM) capability, most of which will be carried over from SRM actions taken in fiscal 2023. For the

full year, input cost inflation is expected to be approximately 5 percent of total cost of goods sold, driven primarily by labor inflation

that continues to impact sourcing, manufacturing, and logistics costs. We expect to generate higher levels of Holistic Margin

Management (HMM) cost savings compared to fiscal 2023.

Based on these assumptions, our key full-year fiscal 2024 targets are summarized below:

●

Organic net sales are expected to increase 3 to 4 percent.

●

Adjusted operating profit is expected to increase 4 to 6 percent in constant-currency from the base of $3,457 million reported

in fiscal 2023.

●

Adjusted diluted EPS are expected to range between 4 to 6 percent in constant-currency from the base of $4.30 earned in

fiscal 2023.

●

Free cash flow conversion is expected to be at least 95 percent of adjusted after-tax earnings.

See the “Non-GAAP Measures” section below for a description of our use of measures not defined by GAAP.

Certain terms used throughout this report are defined in a glossary in Item 8 of this report.

FISCAL 2023 CONSOLIDATED RESULTS OF OPERATIONS

In fiscal 2023, net sales increased 6 percent compared to fiscal 2022 and organic net sales increased 10 percent compared to last year.

Operating profit decreased 1 percent to $3,434 million primarily driven by higher input costs, a decrease in contributions from volume

growth, an unfavorable change to the mark-to-market valuation of certain commodities positions and grain inventories, and an

increase in selling, general, and administrative (SG&A) expenses, including increased media and advertising expenses, partially offset

by favorable net price realization and mix. Operating profit margin of 17.1 percent decreased 120 basis points. Adjusted operating

profit of $3, 457 million increased 8 percent on a constant-currency basis, primarily driven by favorable net price realization and mix,

partially offset by higher input costs, a decrease in contributions from volume growth and an increase in SG&A expenses, including

increased media and advertising expenses. Adjusted operating profit margin increased 30 basis points to 17.2 percent. Diluted earnings

per share of $4.31 decreased 2 percent compared to fiscal 2022. Adjusted diluted earnings per share of $4.30 increased 10 percent on a

constant-currency basis (see the “Non-GAAP Measures” section below for a description of our use of measures not defined by

GAAP).

A summary of our consolidated financial results for fiscal 2023 follows:

Fiscal 2023

In millions,

except per

share

Fiscal 2023 vs.

Fiscal 2022

Percent of Net

Sales

Constant-

Currency

Growth (a)

Net sales

$

20,094.2

6

%

Operating profit

3,433.8

(1)

%

17.1

%

Net earnings attributable to General Mills

2,593.9

(4)

%

Diluted earnings per share

$

4.31

(2)

%

Organic net sales growth rate (a)

10

%

Adjusted operating profit (a)

3,457.3

8

%

17.2

%

8

%

Adjusted diluted earnings per share (a)

$

4.30

9

%

10

%

(a) See the "Non-GAAP Measures" section below for our use of measures not defined by GAAP.

17

Consolidated

 net sales

were as follows:

Fiscal 2023

Fiscal 2023 vs.

Fiscal 2022

Fiscal 2022

Net sales (in millions)

$

20,094.2

6

%

$

18,992.8

Contributions from volume growth (a)

(8)

pts

Net price realization and mix

15

pts

Foreign currency exchange

(1)

pt

Note: Table may not foot due to rounding

(a) Measured in tons based on the stated weight of our product shipments.

Net sales in fiscal 2023 increased 6 percent compared to fiscal 2022, driven by favorable net price realization and mix, partially offset

by a decrease in contributions from volume growth and unfavorable foreign currency exchange.

Components of organic net sales growth are shown in the following table:

Fiscal 2023 vs. Fiscal 2022

Contributions from organic volume growth (a)

(4)

pts

Organic net price realization and mix

14

pts

Organic net sales growth

10

pts

Foreign currency exchange

(1)

pt

Acquisitions and divestitures

(4)

pts

Net sales growth

6

pts

Note: Table may not foot due to rounding

(a) Measured in tons based on the stated weight of our product shipments.

Organic net sales in fiscal 2023 increased 10 percent compared to fiscal 2022, driven by favorable organic net price realization and

mix, partially offset by a decrease in contributions from organic volume growth.

Cost of sales

increased $958 million in fiscal 2023 to $13,548 million. The increase was primarily driven by a $1,454 million increase

attributable to product rate and mix, partially offset by a $950 million decrease due to lower volume. We recorded a $292 million net

increase in cost of sales related to mark-to-market valuation of certain commodity positions and grain inventories in fiscal 2023,

compared to a net decrease of $133 million in fiscal 2022 (please see Note 8 to the Consolidated Financial Statements in Item 8 of this

report for additional information). In fiscal 2023, we recorded a $25 million charge related to a voluntary recall on certain

international

Häagen-Dazs

ice cream products. We also recorded $5 million of restructuring charges and $2 million of restructuring

initiative project-related costs in cost of sales in fiscal 2023 compared to $3 million of restructuring charges in cost of sales in fiscal

2022 (please see Note 4 to the Consolidated Financial Statements in Item 8 of this report for additional information).

Gross margin

increased 2 percent in fiscal 2023 compared to fiscal 2022. Gross margin as a percent of net sales decreased 110 basis

points to 32.6 percent compared to fiscal 2022. 

SG&A expenses

 increased $353 million to $3,500 million in fiscal 2023 compared to fiscal 2022 primarily driven by increased media

and advertising expenses, unfavorable valuation adjustments and the loss on sale of certain corporate investments, an increase in

certain compensation and benefits expenses, and an increase in charitable contributions in fiscal 2023. SG&A expenses as a percent of

net sales in fiscal 2023 increased 80 basis points compared to fiscal 2022.

Divestitures gain, net

 totaled $445 million in fiscal 2023

primarily related to the sale of our Helper main meals and Suddenly Salad

side dishes business. In fiscal 2022, we recorded a $194 million divestitures gain related to the sale of our interest in Yoplait SAS,

Yoplait marques SNC and Liberté Marques Sàrl and our European dough businesses (please refer to Note 3 to the Consolidated

Financial Statements in Part I, Item 1 of this report).

Restructuring, impairment, and other exit costs (recoveries)

totaled $56 million in fiscal 2023 compared to $26 million of net

recoveries in fiscal 2022. In fiscal 2023, we approved restructuring actions to enhance the efficiency of our global supply chain

structure and to optimize our Häagen-Dazs shops network, and as a result, we recorded $41 million of charges in fiscal 2023. In fiscal

2022, we approved restructuring actions in the International segment to drive efficiencies in manufacturing and logistics operations

and recorded $12 million of charges. Please see Note 4 to the Consolidated Financial Statements in Item 8 of this report for additional

information. 

18

Benefit plan non-service income

totaled $89 million in fiscal 2023 compared to $113 million in fiscal 2022, primarily reflecting an

increase in interest costs, partially offset by lower amortization of losses and higher expected return on plan assets (please see Note 14

to the Consolidated Financial Statements in Item 8 of this report for additional information).

Interest, net

for fiscal 2023 totaled $382 million, $2 million higher than fiscal 2022.

Our

effective tax rate

for fiscal 2023 was 19.5 percent compared to 18.3 percent in fiscal 2022. The 1.2 percentage point increase was

primarily driven by a change in the valuation allowance on our capital loss carryforward s in fiscal 2022, partially offset by certain

favorable discrete tax items in fiscal 2023 . Our adjusted effective tax rate was 20.4 percent in fiscal 2023 compared to 20.9 percent in

fiscal 2022 (see the “Non-GAAP Measures” section below for a description of our use of measures not defined by GAAP). The 0.5

percentage point decrease was primarily due to certain favorable discrete tax items in fiscal 2023.

After-tax earnings from joint ventures

decreased to $81 million in fiscal 2023 compared to $112 million in fiscal 2022, primarily

driven by higher input costs at CPW and HDJ and lower net sales at HDJ, partially offset by favorable net price realization and mix at

CPW. On a constant-currency basis, after-tax earnings from joint ventures decreased 18 percent (see the “Non-GAAP Measures”

section below for a description of our use of measures not defined by GAAP). The components of our joint ventures’ net sales growth

are shown in the following table:

Fiscal 2023 vs. Fiscal 2022

CPW

HDJ

Total

Contributions from volume growth (a)

(10)

pts

(5)

pts

Net price realization and mix

14

pts

Flat

Net sales growth in constant currency

4

pts

(5)

pts

2

pts

Foreign currency exchange

(8)

pts

(15)

pts

(10)

pts

Net sales growth

(5)

pts

(21)

pts

(8)

pts

Note: Table may not foot due to rounding

(a) Measured in tons based on the stated weight of our product shipments.

Net earnings attributable to redeemable and noncontrolling interests

 decreased to $16 million in fiscal 2023 compared to $28

million in fiscal 2022, primarily driven by the sale of our interests in Yoplait SAS, Yoplait Marques SNC, and Liberté Marques Sàrl in

fiscal 2022.

Average diluted shares outstanding

decreased by 11 million in fiscal 2023 from fiscal 2022 primarily due to share repurchases,

partially offset by option exercises. 

RESULTS OF SEGMENT OPERATIONS

Our businesses are organized into four operating segments: North America Retail, International, Pet, and North America Foodservice .

In fiscal 2022, we completed a new organization structure to streamline our global operations. We restated our net sales by segment

and segment operating profit to reflect our new operating segments. These segment changes had no effect on previously reported

consolidated net sales, operating profit, net earnings attributable to General Mills, or earnings per share.

19

The following tables provide the dollar amount and percentage of net sales and operating profit from each segment for fiscal 2023 and

fiscal 2022:

Fiscal Year

2023

2022

In Millions

Dollars

Percent of Total

Dollars

Percent of Total

Net Sales

North America Retail

$

12,659.9

63

%

$

11,572.0

61

%

International

2,769.5

14

3,315.7

17

Pet

2,473.3

12

2,259.4

12

North America Foodservice

2,191.5

11

1,845.7

10

Total

$

20,094.2

100

%

$

18,992.8

100

%

Segment Operating Profit

North America Retail

$

3,181.3

78

%

$

2,699.7

74

%

International

161.8

4

232.0

6

Pet

445.5

11

470.6

13

North America Foodservice

290.0

7

255.5

7

Total

$

4,078.6

100

%

$

3,657.8

100

%

Segment operating profit as reviewed by our executive management excludes unallocated corporate items, net gain or loss on

divestitures, and restructuring, impairment, and other exit costs that are centrally managed.

NORTH AMERICA RETAIL SEGMENT

Our North America Retail operating segment reflects business with a wide variety of grocery stores, mass merchandisers, membership

stores, natural food chains, drug, dollar and discount chains, convenience stores, and e-commerce grocery providers. Our product

categories in this business segment are ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough

products, dessert and baking mixes, frozen pizza and pizza snacks, snack bars, fruit snacks, savory snacks, and a wide variety of

organic products including ready-to-eat cereal, frozen and shelf-stable vegetables, meal kits, fruit snacks and snack bars.

North America Retail net sales were as follows:

Fiscal 2023

Fiscal 2023 vs. 2022

Percentage Change

Fiscal 2022

Net sales (in millions)

$

12,659.9

9

%

$

11,572.0

Contributions from volume growth (a)

(6)

pts

Net price realization and mix

16

pts

Foreign currency exchange

(1)

pt

Note: Table may not foot due to rounding.

(a)

Measured in tons based on the stated weight of our product shipments. 

The 9 percent increase in North America Retail net sales for fiscal 2023 was driven by favorable net price realization and mix,

partially offset by a decrease in contributions from volume growth and unfavorable foreign currency exchange.

20

The components of North America Retail organic net sales growth are shown in the following table:

Fiscal 2023 vs. 2022