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Nov 26, 2023
General Mills Q2 2024 Earnings Report
Second quarter results for fiscal year 2024 were reported, with an updated full-year outlook.
Key Takeaways
General Mills reported a 2% decrease in net sales to $5.1 billion, with a 2% decrease in organic net sales. Diluted EPS increased by 1% to $1.02, and adjusted diluted EPS increased by 14% in constant currency to $1.25. The company has updated its full-year fiscal 2024 outlook, reflecting expectations for a slower volume recovery and greater Holistic Margin Management (HMM) cost savings.
Net sales decreased by 2% to $5.1 billion, while organic net sales also decreased by 2%.
Operating profit increased by 2% to $812 million, and adjusted operating profit increased by 13% in constant currency to $989 million.
Diluted earnings per share (EPS) increased by 1% to $1.02, and adjusted diluted EPS increased by 14% in constant currency to $1.25.
The company updated its full-year fiscal 2024 outlook to reflect expectations for slower volume recovery and greater Holistic Margin Management (HMM) cost savings.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
General Mills has updated its full-year fiscal 2024 financial targets to reflect a slower volume recovery and greater Holistic Margin Management (HMM) cost savings.
Positive Outlook
- Holistic Margin Management (HMM) cost savings are now expected to be roughly 5% of cost of goods sold in fiscal 2024, up from its previous expectation of 4%.
- Adjusted operating profit is now expected to increase 4 to 5 percent in constant currency.
- Adjusted diluted EPS are now expected to increase 4 to 5 percent in constant currency.
- Free cash flow conversion is still expected to be at least 95 percent of adjusted after-tax earnings.
- Expects to eliminate disruption-related costs in the supply chain.
Challenges Ahead
- Organic net sales are now expected to range between down 1 percent and flat, compared to the previous range of 3 to 4 percent growth, reflecting a slower volume recovery in fiscal 2024.
- Adjusted operating profit is now expected to increase 4 to 5 percent in constant currency, compared to the previous range of 4 to 6 percent growth in constant currency, reflecting the impact of lower organic sales growth.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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