General Mills company 2023

General Mills in 2023

company introduction :

One of the top producers of packaged foods in the world, General Mills also makes pet food, superpremium ice cream, yogurt, dough, and baking mixes and ingredients. Nature Valley, Cheerios, Old El Paso, Yoplait, Pillsbury, Betty Crocker, BLUE, and Haagen-Dazs are some of its most well-known brands. Although the corporation also has operations in Canada, Europe, Australia, Asia, and Latin America, 77% of its fiscal 2022 sales came from the United States. While General Mills sells the majority of its goods to customers in retail stores, it also offers goods to the food-service sector and the commercial baking market.

General Mills (NYSE:GIS) has a market cap of $40.10 billion, $20.10 billion in sales, and a stock price of $68.98 as of the most recent statistics. The estimated $75.45 fair value (GF Value) of the corporation shows that the stock is properly valued.

General Mills Inc. (NYSE:GIS) witnessed a day change of -1.75% on August 21, 2023, resulting in a 3-month loss of -20.65%. Is General Mills properly valued given its 4.31 earnings per share (EPS) (EPS)? In order to offer useful information to potential investors, this article presents a thorough value analysis of General Mills. Now let's get into the specifics.

Results for the fourth quarter and full year of fiscal year 2023 are reported by General Mills, along with a forecast for fiscal year 2024 :

General Mills Board of Directors Declares Nine Percent Dividend Increase :

Organic net sales1 climbed by 10% to $20.1 billion, a 6 percent rise over the previous year's net sales.

Operating profit fell by 1% to $3.4 billion, but adjusted operating profit increased by 8% in constant currency to $3.46 billion.

Adjusted diluted EPS of $4.30 was up 10% in constant currency from the preceding year's diluted EPS of $4.31, which was down 2% from the previous year.

Organic net sales rose by 5%, while net sales increased by 3% overall ($5.0 billion).

Operating profit of $818 million was down 19%, although adjusted operating profit of $889 million was practically the same as in constant currency last year.

Adjusted diluted EPS of $1.12 gained 1 percent in constant currency, compared to diluted EPS of $1.03, which were down 24%.

Minnesota - (Business Wire) The fourth quarter and fiscal year ending May 28, 2023, were released by General Mills, Inc. (NYSE: GIS) today ,"We delivered excellent results in fiscal 2023, including generating double-digit growth in organic net sales and constant-currency adjusted diluted EPS and surpassing $20 billion in annual net sales for the first time in our company's history," said General Mills Chairman and Chief Executive Officer Jeff Harmening. "Under the direction of our Accelerate strategy, our team successfully negotiated a highly dynamic operating environment with agility, focus, and resilience."

"As we look ahead to fiscal 2024, we'll rely on these same qualities to keep thriving in a changing business environment. We'll concentrate on retaining our competitive edge, increasing operational effectiveness, and upholding our rigorous capital allocation strategy, which we anticipate will lead to financial performance that meets or surpasses each of our primary long-term objectives. Our Board of Directors approved a nine percent dividend increase that will take effect with the August 2023 payment to further demonstrate our dedication to generating great returns for General Mills shareholders.

General Mills is carrying out its Accelerate strategy to promote long-term, profitable growth and top-tier shareholder returns. To generate competitive advantages and win, the approach is built on four pillars: building brands with audacity, never-ending innovation, unleashing scale, and standing for what is right. In order to improve its growth profile, the firm is committed to reorganizing its portfolio through strategic acquisitions and divestitures. It is emphasizing its core markets, international platforms, and local gem brands, which have the best chances for profitable growth.

Result Summary for the Fourth Quarter :

With a 1-point headwind from net divestment and acquisition activity and a 1-point negative foreign exchange headwind, net sales increased by 3 percent to $5.0 billion. Organic net sales increased by 5% as a result of higher organic net price realization and mix, which were slightly offset by lower organic pound volume, which included a negative impact from a drop in retailer inventory in North America Retail.

Higher input costs and negative mark-to-market impacts reduced gross margin by 180 basis points to 34.4 percent of net sales, which was largely offset by favorable net price realization and mix. As a result of favorable net price realization and mix, adjusted gross margin increased by 120 basis points to 35.0 percent of net sales. Higher input costs, including a 9 percent increase in input expenses during the quarter, partially offset this increase.

Operating profit of $818 million was down 19% as a result of increased selling, general, and administrative (SG&A) costs, increased restructuring charges, and reduced gross profit dollars, which were largely offset by encouraging net investment activities. The operating profit margin fell by 450 basis points to 16.3 percent. With higher adjusted SG&A costs, notably a double-digit rise in advertising spending, offsetting higher adjusted gross profit dollars, adjusted operating profit of $889 million practically matched year-ago levels in constant currency. To 17.7 percent, the adjusted operating profit margin decreased by 60 basis points.

The main reason for the decline in diluted EPS to $1.03 and the 25% decline in net earnings attributable to General Mills' company were reduced operating profit. reduced net shares outstanding were the main factor in the $1.12 adjusted diluted EPS's 1 percent gain in constant currency, which was slightly offset by reduced benefit plan non-service revenue.

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