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Feb 25, 2024

General Mills Q3 2024 Earnings Report

General Mills' Q3 2024 earnings were released, revealing a mix of challenges and strategic progress.

Key Takeaways

General Mills reported a 1% decrease in net sales to $5.1 billion, with organic net sales also down 1%. However, the company saw a 25% increase in operating profit to $911 million and EPS of $1.17, up 27%. The company reaffirms its full-year fiscal 2024 outlook.

Net sales decreased by 1% to $5.1 billion, with organic net sales also down 1%.

Operating profit increased by 25% to $911 million, and adjusted operating profit rose by 14% in constant currency.

Diluted EPS increased by 27% to $1.17, with adjusted diluted EPS up 22% in constant currency.

The company reaffirms its full-year fiscal 2024 outlook.

Total Revenue
$5.1B
Previous year: $5.13B
-0.5%
EPS
$1.17
Previous year: $0.97
+20.6%
Gross Profit
$1.68B
Previous year: $1.66B
+1.0%
Cash and Equivalents
$589M
Previous year: $619M
-4.9%
Free Cash Flow
$751M
Previous year: $702M
+7.1%
Total Assets
$30.9B
Previous year: $31.2B
-1.1%

General Mills

General Mills

General Mills Revenue by Segment

Forward Guidance

General Mills reaffirmed its full-year fiscal 2024 financial targets.

Positive Outlook

  • Organic net sales are expected to range between down 1 percent and flat.
  • Adjusted operating profit is expected to increase 4 to 5 percent in constant currency.
  • Adjusted diluted EPS is expected to increase 4 to 5 percent in constant currency.
  • Free cash flow conversion is expected to be at least 95 percent of adjusted after-tax earnings.
  • The net impact of divestitures and foreign currency exchange is expected to have an immaterial impact on full-year reported net sales growth.

Challenges Ahead

  • Economic health of consumers.
  • Moderating rate of input cost inflation.
  • Increasing stability of the supply chain environment.
  • Changes in foreign currency exchange rates.
  • Timing of acquisitions and divestitures.

Revenue & Expenses

Visualization of income flow from segment revenue to net income