Categories Analysis, Consumer

What to expect when General Mills (GIS) reports Q3 earnings next week

The consensus estimate is for EPS of $0.91 in Q3 2023

Shares of General Mills Inc. (NYSE: GIS) were down on Thursday. The stock has gained 27% over the past 12 months. The processed foods maker is scheduled to report its earnings results for the third quarter of 2023 on Thursday, March 23 before market open. Here’s a look at what to expect from the earnings announcement:

Revenue

Analysts are projecting revenue of $4.9 billion for General Mills in Q3 2023, which would reflect a growth of 9% over the same period a year ago. In the second quarter of 2023, net sales increased 4% year-over-year to $5.2 billion.

Earnings

The consensus estimate is for EPS of $0.91 in Q3 2023 which compares to adjusted EPS of $0.84 reported in the year-ago period. In Q2 2023, adjusted EPS increased 12% to $1.10.

General-Mills-Q2-2023-Earnings-Infographic-1

Points to note

General Mills’ sales in Q2 benefited from price increases undertaken to tackle inflation. These gains were partly offset by volume declines during the quarter. The company has been reshaping its portfolio through acquisitions and divestitures and over the past few months it has offloaded some parts of its business so that it can focus on the ones that have more growth potential.

GIS plans to increase its manufacturing capacity on key platforms such as pet food, Mexican food, hot snacks, fruit snacks, and cereal. At a recent analyst event, the company emphasized two businesses that it sees as key contributors to its long-term growth – North America Retail and Pet Food.

The North America Retail segment has consistently managed to hold or grow share in the majority of its priority businesses. In Q2, this segment posted double-digit sales growth, supported by gains in US Snacks, US Meals & Baking Solutions, and US Morning Foods.

The Pet Food segment has managed to grow its distribution in the US and increase its household penetration significantly over the past few years. The company expects to see continued growth for its Blue Buffalo brand over the long term as pet food and treats retain demand.

General Mills has innovation and expansion plans for its Wilderness dry dog food line, its natural pet treats portfolio, and its Tastefuls natural cat feeding line. It also has plans to test a new Fresh line of refrigerated Blue Buffalo dog food. Updates on these product innovation plans and business expansion strategies are worth keeping an eye on.

Also read: General Mills (GIS) remains bullish on Pet business’ growth prospects despite short-term headwinds

Looking for more insights on the earnings results? Click here to access the full transcripts of the latest earnings conference calls!

Most Popular

LandBridge Company gears up to raise $319 million in US IPO

LandBridge Company LLC, which is engaged in the acquisition of oil properties, is preparing to become a public entity by listing on the New York Stock Exchange through an initial

A look at the performance of Philip Morris’ (PM) smoke-free business

Shares of Philip Morris International Inc. (NYSE: PM) stayed red on Monday. The stock has gained 7% over the past three months. The company has been seeing its smoke-free business

Kroger (KR) to report Q1 earnings on Thursday. Here’s what to expect

Grocery chain The Kroger Co. (NYSE: KR) is preparing to report financial results for the first three months of fiscal 2024, with market watchers forecasting a modest outcome. Betting on

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top