- General Mills Inc GIS reported second-quarter FY23 sales growth of 4% year-on-year to $5.22 billion, beating the consensus of $5.19 billion.
- North America Retail segment sales increased 11% Y/Y to $3.4 billion. Pet segment sales remained flat at $593 million, while International segment sales fell 27% to $672 million.
- Organic net sales increased 13%. Net sales increased 18% in U.S. Snacks, 10% in U.S. Meals & Baking Solutions, and 10% in U.S. Morning Foods.
- Adjusted EPS of $1.10 topped the consensus of $1.06.
- Gross margin expanded 20 basis points Y/Y to 32.7%. Adjusted gross margin rose 100 basis points to 33.2%.
- Operating margin contracted 60 basis points to 15.3%, and operating income for the quarter was $800 million.
- General Mills held $644.1 million in cash and equivalents as of November 27, 2022. Net cash provided by operating activities for six months totaled $1.2 billion.
- General Mills Chairman and CEO Jeff Harmening, said, "Amid ongoing volatility in the operating environment, we remain focused on driving our Accelerate strategy by investing in brand building and innovation, strengthening our capabilities, and continuing to reshape our portfolio."
- Outlook: General Mills raised FY23 Organic net sales growth guidance to 8% - 9% from 6% - 7%.
- The company raised FY23 constant-currency adjusted EPS growth to 4% - 6% from 2% - 5%.
- Related: General Mills Has Room For Further Guidance Boost, Says Credit Suisse
- Price Action: GIS shares are trading lower by 3.18% at $84.35 in premarket on the last check Tuesday.
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