General Mills Half-Year Report 2023
General Mills Reports Fiscal 2023 Second-quarter Results
- Net sales increased 4 percent from the prior year to $5.2 billion; organic net sales1 were up 11 percent
- Operating profit of $800 million essentially matched year-ago levels; adjusted operating profit was up 7
percent in constant currency - Diluted earnings per share (EPS) of $1.01 increased 4 percent from the prior year; adjusted diluted EPS of
$1.10 was up 12 percent in constant currency - Company raises full-year fiscal 2023 outlook
Second Quarter Results Summary
- Net sales increased 4 percent to $5.2 billion, including a 5-point headwind from net divestiture and acquisition
activity and 1 point of unfavorable foreign currency exchange. Organic net sales increased 11 percent, driven by
positive organic net price realization and mix, partially offset by lower organic pound volume. - Gross margin was up 20 basis points to 32.7 percent of net sales, driven by favorable net price realization and mix, partially offset by higher input costs and unfavorable mark-to-market effects. Adjusted gross margin was up 100 basis points to 33.2 percent of net sales, driven by favorable net price realization and mix and Holistic Margin Management (HMM) cost savings, partially offset by input cost inflation, higher other cost of goods sold, and supply chain deleverage.
- Operating profit of $800 million essentially matched year-ago levels, reflecting higher gross profit dollars offset by higher selling, general, and administrative (SG&A) expenses. Operating profit margin of 15.3 percent was down 60 basis points. Constant-currency adjusted operating profit increased 7 percent, driven by higher
adjusted gross profit dollars, partially offset by higher adjusted SG&A expenses. Adjusted operating profit
margin increased 60 basis points to 16.9 percent.
