NYSE$GIS

General Mills Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported strong first-quarter results for fiscal year 2023, driven by organic net sales growth and effective cost management, leading to an increased full-year outlook.

General Mills reported a 4% increase in net sales to $4.7 billion, with organic net sales up 10%. Operating profit increased by 29% to $1.1 billion, and diluted EPS rose by 32% to $1.35. The company raised its full-year fiscal 2023 outlook, citing strong first-quarter results and confidence in adapting to continued volatility.

  • Net sales increased 4% to $4.7 billion, with organic net sales up 10%.
  • Operating profit increased 29% to $1.1 billion.
  • Diluted earnings per share (EPS) increased 32% to $1.35.
  • The company raised its full-year fiscal 2023 outlook for net sales, operating profit, and EPS growth.

Headline financials

Total Revenue

$4.72B

Previous: $4.54B+3.9%
EPS (adj)

$1.11

Previous: $0.99+12.1%
Organic Net Sales Growth

10.0%

Previous: 2.0%+400.0%
Capital Expenditures

-$90.9M

Previous: -$104M+12.6%
Free Cash Flow

$729M

Previous: $523M+39.4%
Net Income

$820M

Previous: $627M+30.8%
Operating Income

$1.09B

Previous: $844M+28.6%
Gross Profit

$1.45B

Previous: $1.6B-9.4%
Cash & Equivalents

$594M

Previous: $711M-16.4%
Total Assets

$31.1B

Previous: $32.3B-3.8%
Stock-Based Comp

$33.5M

Previous: $26.8M+25.0%

Revenue & EPS history

General Mills · Revenue · Quarterly

$4.72B

Q1 2023+3.9%vs Q1 2022
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

General Mills · $4.14B total across 3 segments · Q1 2023

  • N.A. Retail
    $2.99B+13.3%
  • International
    $653M
  • N.A. Foodservice
    $496M

Forward guidance

General Mills updated full-year fiscal 2023 financial targets include organic net sales are now expected to increase 6 to 7 percent, Constant-currency adjusted operating profit is now expected to range between flat and up 3 percent in constant currency, Constant-currency adjusted diluted EPS is now expected to increase 2 to 5 percent in constant currency and Free cash flow conversion is still expected to be at least 90 percent of adjusted after-tax earnings.

Tailwinds

  • Organic net sales are now expected to increase 6 to 7 percent.
  • Constant-currency adjusted operating profit is now expected to range between flat and up 3 percent in constant currency.
  • Constant-currency adjusted diluted EPS is now expected to increase 2 to 5 percent in constant currency.
  • Free cash flow conversion is still expected to be at least 90 percent of adjusted after-tax earnings.
  • Company expects lower volume elasticities and better volume performance.

Headwinds

  • Net impact of divestitures, acquisitions, and foreign currency exchange is now expected to reduce full-year reported net sales growth by approximately 4 percent.
  • Foreign currency exchange is still expected to reduce adjusted operating profit and adjusted diluted EPS growth by approximately 1 percent.
  • Increased input cost inflation to 14 to 15 percent of total cost of goods sold.
  • Includes a 3-point net headwind from divestitures and acquisitions and an estimated 1-point headwind from the ice cream recall.
  • Company expects volume elasticities will increase over the remaining quarters of fiscal 2023 but remain below historical levels.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

-0.7%

Avg return

5 days after

-0.6%

Avg return

30 days after

42%

30 / 72 earnings

Positive

+8.5%

Q4 2016

Best reaction

-11.0%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026+0.0%-3.6%-8.4%
Q2 2026+2.9%+0.8%-5.3%
Q1 2026-0.9%+1.0%-2.4%
Q4 2025-1.2%-1.7%-3.9%
Q3 2025-2.1%-3.8%-4.8%
Q2 2025-2.9%-3.6%-9.6%
Q1 2025+0.5%-0.4%-6.1%
Q4 2024-5.3%-5.9%-1.4%
Q3 2024+0.2%+0.7%+2.6%
Q2 2024-3.7%-3.3%-5.3%
Q1 2024-0.6%-1.7%-4.0%
Q4 2023-5.7%-4.7%-6.7%
Q3 2023+6.2%+6.1%+9.5%
Q2 2023-2.0%-2.0%-11.1%
Q1 2023+7.1%+4.3%+2.2%
Q4 2022+7.4%+7.9%+6.4%
Q3 2022+5.9%+6.7%+15.7%
Q2 2022-3.1%-2.7%+1.0%
Q1 2022+3.9%+2.8%+8.1%
Q4 2021+0.3%+0.3%-1.9%
Q3 2021-2.7%+2.1%+0.1%
Q2 2021+0.8%-0.5%-4.5%
Q1 2021+1.2%+3.3%+6.5%
Q4 2020-0.3%+0.9%+2.6%
Q3 2020-10.0%-20.8%+1.7%
Q2 2020+2.0%+1.1%+3.2%
Q1 2020-1.2%-2.1%-4.5%
Q4 2019-2.8%-0.7%-0.1%
Q3 2019+5.9%+8.1%+9.5%
Q2 2019+6.5%+2.4%+18.4%
Q1 2019-7.3%-6.9%-8.6%
Q4 2018-3.0%-5.7%-2.3%
Q3 2018-11.0%-9.3%-13.1%
Q2 2018+3.3%+4.3%+2.6%
Q1 2018-6.7%-5.6%-6.1%
Q4 2017-1.0%-0.6%-0.3%
Q3 2017-2.2%-1.8%-3.9%
Q2 2017-1.1%-1.4%-2.2%
Q1 2017+0.6%-1.2%-6.2%
Q4 2016+8.5%+9.4%+9.3%
Q3 2016+0.9%
Q2 2016-3.8%
Q1 2016+1.1%
Q4 2015+2.4%
Q3 2015+0.9%
Q2 2015+4.7%
Q1 2015-3.7%
Q4 2014-3.1%
Q3 2014+0.7%
Q2 2014-0.4%
Q1 2014-1.9%
Q4 2013+0.0%
Q3 2013+3.1%
Q2 2013-0.5%
Q1 2013+2.9%
Q4 2012-0.9%
Q3 2012-0.4%
Q2 2012+1.4%
Q1 2012+5.4%
Q4 2011-0.4%
Q3 2011-1.0%
Q2 2011-0.8%
Q1 2011+1.3%
Q4 2008-1.4%
Q4 2010-1.4%
Q3 2009-3.3%
Q3 2010-3.3%
Q2 2010+0.8%
Q1 2010-0.8%
Q4 2009-0.8%
Q1 2009-0.8%
Q2 2009-0.8%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro