General Mills (GIS) Tops Q1 EPS by 3c

General Mills (NYSE: GIS) reported Q1 EPS of $0.75, $0.03 better than the analyst estimate of $0.72. Revenue for the quarter came in at $4.4 billion versus the consensus estimate of $4.34 billion.

Fiscal 2027 Outlook

General Mills’ top priority is to restore profitable organic net sales growth over the long term by making its brands resonate more deeply with consumers, leveraging all elements of its Remarkable Experience Framework. For fiscal 2027, the company expects category growth to be consistent with recent trends and below its long-term historical growth rate, driven by a continued challenging consumer backdrop. With its base price investment actions completed in fiscal 2026, the company is shifting its focus in fiscal 2027 to product innovation and renovation news centered on the benefits that matter most to today’s consumers, including better-for-you benefits like protein and fiber, bold flavors, fun, and indulgence, as well as the continued trend in pet humanization. This approach is expected to further strengthen its brands and drive improved organic net sales performance in fiscal 2027.

On the bottom line, General Mills continues to expect to generate at least $750 million in savings from its Holistic Margin Management productivity program, its global transformation initiative, and other cost savings actions in fiscal 2027, which are expected to offset input cost inflation and brand investments. In addition to those factors, the company continues to expect headwinds of approximately 9 points on operating profit and 11 points on EPS in fiscal 2027 from lapping the 53rd week in fiscal 2026, normalizing corporate incentive expense, and the impact of fiscal 2026 divestitures.

Based on the above assumptions, General Mills reaffirmed its full-year financial targets² for fiscal 2027:

Organic net sales are expected to range between down 1.5 percent and up 0.5 percent.
Adjusted operating profit is expected to be down 13 percent to down 8 percent in constant currency.
Adjusted diluted earnings are expected to be between $3.00 and $3.20 per share.
Free cash flow conversion is expected to be approximately 95 percent of adjusted after-tax earnings.

The net impact of divestitures, foreign currency exchange, and the 53rd week is now expected to reduce full-year fiscal 2027 reported net sales growth by approximately 4 percent, driven primarily by the 53rd week comparison and the Brazil divestiture. Foreign currency exchange is not expected to have a material impact on adjusted operating profit growth or adjusted diluted EPS growth in fiscal 2027.

For earnings history and earnings-related data on General Mills (GIS) click here.

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