General Mills (GIS) said its first-quarter constant-currency adjusted operating profit increased 8 percent year-over-year, driven by higher adjusted gross profit dollars, partially offset by higher adjusted selling, general, and administrative expenses. Adjusted EPS increased 13 percent in constant currency, primarily driven by higher adjusted operating profit. Organic net sales increased 10 percent, driven by positive organic net price realization and mix, partially offset by lower organic pound volume, including the impact of a voluntary recall on certain international Häagen-Dazs ice cream products. Looking forward, the company increased its full-year outlook for net sales, operating profit, and EPS growth.
For fiscal 2023, constant-currency adjusted operating profit is now expected to range between flat and up 3 percent in constant currency. Adjusted operating profit was previously expected to range between down 2 percent and up 1 percent in constant currency. Constant-currency adjusted EPS is now expected to increase 2 to 5 percent in constant currency. Previously, adjusted EPS was expected to range between flat and up 3 percent in constant currency. The company now projects organic net sales to increase 6 to 7 percent, compared to the previous expectation of 4 to 5 percent growth.
First quarter bottom line totaled $820.0 million, or $1.35 per share compared with $627.0 million, or $1.02 per share, a year ago. Excluding items, General Mills reported adjusted earnings of $1.11 per share for the period. Analysts on average had expected the company to earn $1.00 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.
The company’s revenue for the quarter rose 4.0% to $4.72 billion from $4.54 billion last year. Analysts on average had estimated $4.72 billion in revenue.
Shares of General Mills are up 1% in pre-market trade on Wednesday.
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