General Mills Q3 2022 Earnings Report
Key Takeaways
General Mills reported solid execution in a volatile environment, with net sales essentially matching year-ago results at $4.5 billion and organic net sales up 4 percent. The company raised its full-year fiscal 2022 outlook, expecting strong growth in the fourth quarter.
Net sales essentially matched year-ago results at $4.5 billion; organic net sales were up 4 percent.
Diluted earnings per share (EPS) of $1.08 increased 13 percent from the prior year; adjusted diluted EPS of $0.84 increased 2 percent in constant currency.
Operating profit declined 1 percent to $815 million; adjusted operating profit was down 6 percent in constant currency
Company raises full-year fiscal 2022 outlook
General Mills
General Mills
General Mills Revenue by Segment
Forward Guidance
General Mills raised its guidance for fiscal 2022 to reflect year-to-date performance and an outlook for strong top- and bottom-line growth in the fourth quarter.
Positive Outlook
- Organic net sales are now expected to increase approximately 5 percent, including an expectation for organic net price realization and mix to increase sequentially from the third quarter to the fourth quarter.
- Constant-currency adjusted operating profit is now expected to range between down 2 percent and flat, reflecting the increased guidance on organic net sales.
- For the full year, the company continues to expect input cost inflation of 8 to 9 percent and significant costs related to supply chain disruptions.
- Constant-currency adjusted diluted EPS are now expected to range between flat and up 2 percent, driven by the higher outlook on adjusted operating profit.
- Free cash flow conversion is expected to be at least 95 percent of adjusted after-tax earnings.
Revenue & Expenses
Visualization of income flow from segment revenue to net income