Foodservice

General Mills boosts Q4, FY 2023 sales, earnings slide

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June 28, 2023

General Mills Inc. lifted its sales for Q4 and full year 2023, boosted by pricing, while earnings took a hit, according to a press release. Highlights include:

• Net sales rose 3% from $4.9 billion in Q4 2022 to $5.03 billion for the quarter ending May 28, 2023. Organic net sales increased 5%, driven by positive organic net price realization and mix, partially offset by lower organic pound volume.
• Net earnings fell 25% from $823 million to $615 million in the comparative quarters.
• Net EPS fell 24% from $1.36 to $1.04 on a basic basis and from $1.35 to $1.03 on a diluted basis.
• Adjusted diluted EPS rose 1% to $1.12 driven primarily by lower net shares outstanding, partially offset by lower benefit plan non-service income.
• North America retail sales rose 2% from $3 billion to $3.07 billion in the comparative quarters.
• North America foodservice sales rose 7% from $526.3 million to $564.3 million.
• International sales fell 1% from $749.7 million to $744.6 million.
• Full year net sales increased 6% from $18.9 billion to $20.1 billion. Organic net sales increased 10%, driven by positive organic net price realization and mix, partially offset by lower organic pound volume.
• Full year net earnings fell 4% from $2.7 billion to $2.6 billion.
• Full year EPS fell 2% from $4.46 to $4.36 on a basic basis and from $4.42 to $4.31 on a diluted basis.
• Full year adjusted diluted EPS rose 10% to $4.30, driven primarily by higher adjusted operating profit, a lower adjusted effective tax rate and lower net shares outstanding, partially offset by lower benefit plan non-service income and lower after-tax earnings from joint ventures.
• Full year North America retail sales rose 9% from $11.6 billion to $12.66 billion.
• Full year North America foodservice sales rose 19% from $1.85 billion to $2.2 billion.
• Full year international sales rose 16% from $3.3 billion to $2.77 billion.

Shares traded today at $77.19 against a 52-week range of $71.50-$90.89.

The $5.03 billion in quarterly revenue missed analyst expectations by $150 million while the non-GAAP EPS of $1.12 beat expectations by 5 cents, according to Seeking Alpha.

"We delivered excellent results in fiscal 2023, including generating double-digit growth in organic net sales and constant-currency adjusted diluted EPS and exceeding $20 billion in annual net sales for the first time in our company's history," Jeff Harmening, chairman and CEO, said in the press release.