General Mills (NYSE: GIS) reported Q1 EPS of $1.11, $0.12 better than the analyst estimate of $0.99. Revenue for the quarter came in at $4.7 billion versus the consensus estimate of $4.72 billion.

Fiscal 2023 Outlook:

• General Mills continues to expect the largest factors impacting its performance in fiscal 2023 will be the economic health of consumers, the inflationary cost environment, and the frequency and severity of disruptions in the supply chain. The company expects volume elasticities will increase over the remaining quarters of fiscal 2023 but remain below historical levels. Relative to its initial full-year expectations, the company now expects lower volume elasticities and better volume performance, increased input cost inflation to 14 to 15 percent of total cost of goods sold, and increased investment in brand building and other growth-driving activities. Other key fiscal 2023 assumptions, including HMM cost savings of 3 to 4 percent of cost of goods sold, low-double-digit positive price/mix, and an expectation for moderately lower supply chain disruptions, remain unchanged.
• The company’s updated full-year fiscal 2023 financial targets are summarized below:
• Organic net sales are now expected to increase 6 to 7 percent, compared to the previous expectation of 4 to 5 percent growth.
• Constant-currency adjusted operating profit is now expected to range between flat and up 3 percent in constant currency, including a 3-point net headwind from divestitures and acquisitions and an estimated 1-point headwind from the ice cream recall. Adjusted operating profit was previously expected to range between down 2 percent and up 1 percent in constant currency, including the 3-point net headwind from divestitures and acquisitions.
• Constant-currency adjusted diluted EPS is now expected to increase 2 to 5 percent in constant currency, including a 3-point net headwind from divestitures and acquisitions and an estimated 1-point headwind from the ice cream recall. Adjusted diluted EPS was previously expected to range between flat and up 3 percent in constant currency, including the 3-point net headwind from divestitures and acquisitions.
• Free cash flow conversion is still expected to be at least 90 percent of adjusted after-tax earnings.
• The net impact of divestitures, acquisitions, and foreign currency exchange is now expected to reduce full-year reported net sales growth by approximately 4 percent, and foreign currency exchange is still expected to reduce adjusted operating profit and adjusted diluted EPS growth by approximately 1 percent.

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