GIS - General Mills Non-GAAP EPS of $1.25 beats by $0.09 revenue of $5.1B misses by $260M

2023-12-20 07:01:36 ET

• General Mills press release ( NYSE: GIS ): Q2 Non-GAAP EPS of $1.25 beats by $0.09 .
• Revenue of $5.1B (-2% Y/Y) misses by $260M .
• Net sales were down 2 percent to $5.1 billion, with lower pound volume partially offset by favorable net price realization and mix. Organic net sales were 2 percent below year-ago results that grew double digits; organic net sales were up 4 percent on a 2-year compound growth basis.
• FY24 outlook:
• Organic net sales are now expected to range between down 1 percent and flat, compared to the previous range of 3 to 4 percent growth, reflecting a slower volume recovery in fiscal 2024.
• Adjusted operating profit and adjusted diluted EPS are now expected to increase 4 to 5 percent in constant currency, compared to the previous range of 4 to 6 percent growth in constant currency, reflecting the impact of lower organic sales growth, largely offset by higher HMM cost savings and greater elimination of disruption-related costs in the supply chain.
• Free cash flow conversion is still expected to be at least 95 percent of adjusted after-tax earnings.
• The net impact of divestitures and foreign currency exchange is now expected to have an immaterial impact on full-year reported net sales growth, and foreign currency exchange is still expected to have an immaterial impact on adjusted operating profit and adjusted diluted EPS growth.

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