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Aug 28, 2022
General Mills Q1 2023 Earnings Report
Reported strong first-quarter results for fiscal year 2023, driven by organic net sales growth and effective cost management, leading to an increased full-year outlook.
Key Takeaways
General Mills reported a 4% increase in net sales to $4.7 billion, with organic net sales up 10%. Operating profit increased by 29% to $1.1 billion, and diluted EPS rose by 32% to $1.35. The company raised its full-year fiscal 2023 outlook, citing strong first-quarter results and confidence in adapting to continued volatility.
Net sales increased 4% to $4.7 billion, with organic net sales up 10%.
Operating profit increased 29% to $1.1 billion.
Diluted earnings per share (EPS) increased 32% to $1.35.
The company raised its full-year fiscal 2023 outlook for net sales, operating profit, and EPS growth.
General Mills
General Mills
General Mills Revenue by Segment
General Mills Revenue by Geographic Location
Revenue by Segment
North America Retail Revenue
CapyFin.comNorth America Foodservice Revenue
CapyFin.comInternational Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
General Mills updated full-year fiscal 2023 financial targets include organic net sales are now expected to increase 6 to 7 percent, Constant-currency adjusted operating profit is now expected to range between flat and up 3 percent in constant currency, Constant-currency adjusted diluted EPS is now expected to increase 2 to 5 percent in constant currency and Free cash flow conversion is still expected to be at least 90 percent of adjusted after-tax earnings.
Positive Outlook
- Organic net sales are now expected to increase 6 to 7 percent.
- Constant-currency adjusted operating profit is now expected to range between flat and up 3 percent in constant currency.
- Constant-currency adjusted diluted EPS is now expected to increase 2 to 5 percent in constant currency.
- Free cash flow conversion is still expected to be at least 90 percent of adjusted after-tax earnings.
- Company expects lower volume elasticities and better volume performance.
Challenges Ahead
- Net impact of divestitures, acquisitions, and foreign currency exchange is now expected to reduce full-year reported net sales growth by approximately 4 percent.
- Foreign currency exchange is still expected to reduce adjusted operating profit and adjusted diluted EPS growth by approximately 1 percent.
- Increased input cost inflation to 14 to 15 percent of total cost of goods sold.
- Includes a 3-point net headwind from divestitures and acquisitions and an estimated 1-point headwind from the ice cream recall.
- Company expects volume elasticities will increase over the remaining quarters of fiscal 2023 but remain below historical levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income