General Mills (NYSE: GIS) reported Q4 EPS of $1.12, $0.05 better than the analyst estimate of $1.07. Revenue for the quarter came in at $5 billion versus the consensus estimate of $5.17 billion.

General Mills expects the largest factors impacting its performance in fiscal 2024 will be the economic health of consumers, the moderating rate of input cost inflation, and the increasing stability of the supply chain environment. The company expects to drive organic net sales growth in fiscal 2024 through strong marketing, innovation, in-store support, and net price realization generated through its Strategic Revenue Management (SRM) capability, most of which will be carried over from SRM actions taken in fiscal 2023. For the full year, input cost inflation is expected to be 5 percent of total cost of goods sold, driven primarily by labor inflation that continues to impact sourcing, manufacturing, and logistics costs. The company expects to generate HMM cost savings of roughly 4 percent of cost of goods sold, compared to 3 percent achieved in fiscal 2023.

With these assumptions in mind, General Mills outlined its full-year financial targets for fiscal 2024²:

• Organic net sales are expected to increase 3 to 4 percent.
• Adjusted operating profit is expected to increase 4 to 6 percent in constant currency from the base of $3.5 billion reported in fiscal 2023.
• Adjusted diluted EPS is expected to increase 4 to 6 percent in constant currency from the base of $4.30 earned in fiscal 2023.
• Free cash flow conversion is expected to be at least 95 percent of adjusted after-tax earnings.
• The net impact of divestitures and foreign currency exchange is expected to reduce full-year reported net sales growth by approximately one half of one percent, and foreign currency exchange is expected to have an immaterial impact on adjusted operating profit and adjusted diluted EPS growth.

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