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General Mills lifts Q1 2023 results, buoyed by pricing

General Mills lifts Q1 2023 results, buoyed by pricingImage provided by iStock.

General Mills Inc. lifted its Q1 2023 sales and earnings, boosted by favorable pricing compared to the prior year period, according to an earnings report.

Highlights include:

  • Net sales increased 4% in Q1 2022 from $4.54 billion to $4.72 billion in the quarter ending Aug. 28, 2022, including a 5-point headwind from net divestiture and acquisition activity.
  • Organic net sales increased 10%, driven by positive organic net price realization and mix, partially offset by lower organic pound volume, including the impact of a voluntary recall on certain international Häagen-Dazs ice cream products.
  • Net earnings jumped 31% from $627 million to $820 million in the comparative quarters.
  • Earnings per share on a basic basis jumped 33% from $1.03 to $1.37 while EPS on a diluted basis rose 32% from $1.02 to $1.35.
  • Adjusted diluted EPS rose 13% to $1.11.
  • North America retail sales increased 10% to $3 billion, driven by favorable net price realization and mix, partially offset by lower pound volume and a 1-point headwind from the Helper and Suddenly Salad divestiture. Net sales increased 14% in U.S. snacks, 10% in U.S. meals and baking solutions, 9% in U.S. morning foods and 4% in Canada.
  • North America foodservice sales increased 21% to $496 million, primarily driven by favorable net price realization and mix, including a 17-point benefit from market index pricing on bakery flour. Net sales results also included a 3-point benefit from the TNT Crust acquisition.
  • International segment sales fell 30% to $652 million, driven by lower pound volume, including the impact of yogurt and dough divestitures and an ice cream recall, and a 5-point headwind from foreign currency exchange, partially offset by favorable net price realization and mix.

Shares traded today at $80.93 against a 52-week range of $58.70-$81.04.

The $4.72 billion in quarterly revenue was in line with analyst expectations, while the non-GAAP EPS of $1.11 beat expectations by 11 cents, according to Seeking Alpha.

"We continue to deliver strong performance in a highly volatile operating environment," Jeff Harmening, chairman and CEO, said in the press release. "Given the strength of our first-quarter results and confidence in our ability to adapt to continued volatility ahead, we are increasing our full-year outlook for net sales, operating profit and EPS growth."

The company continues to expect the largest factors impacting its performance in fiscal 2023 will be the economic health of consumers, the inflationary cost environment and the frequency and severity of disruptions in the supply chain.

Organic net sales are now expected to increase 6% to 7% compared to the previous expectation of 4% to 5%.

Constant-currency adjusted diluted EPS is now expected to increase 2% to 5% after previously expected to range between flat and up 3% in constant currency.


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