- General Mills Inc (NYSE:GIS) reported first-quarter FY23 sales growth of 4% year-on-year to $4.717 billion, marginally missing the consensus of $4.72 billion.
- North America Retail segment sales increased 10% Y/Y to $2.98 billion. Pet segment sales increased 19% to $580 million, while International segment sales fell 30% to $652 million.
- Adjusted EPS of $1.11 topped the consensus of $1.00.
- The gross margin contracted 450 basis points Y/Y to 30.7%. Adjusted gross margin rose 20 basis points to 34.9%.
- Also Read: Morgan Stanley Expects Solid Q1 Earnings From General Mills
- The operating margin expanded 440 basis points to 23%, and operating income for the quarter jumped 29% to $1.1 billion.
- General Mills held $594.4 million in cash and equivalents as of August 28, 2022. Net cash provided by operating activities for the quarter totaled $389 million.
- General Mills Chairman and CEO Jeff Harmening, said, “Given the strength of our first-quarter results and confidence in our ability to adapt to continued volatility ahead, we are increasing our full-year outlook for net sales, operating profit, and EPS growth.”
- Outlook: General Mills raised FY23 Organic net sales growth guidance to 6% – 7% from 4% – 5$%.
- The company sees an FY23 constant-currency adjusted EPS growth of 2% – 5% increase in constant currency (prior view flat – up 3%).
- Price Action: GIS shares are trading higher by 2.57% at $77.35 in premarket on the last check Wednesday.
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