General Mills Q1 2023 Earnings Report
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
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