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Shares of General Mills Inc. (NYSE: GIS ) fell on Thursday. The stock has gained 27% over the past 12 months. The processed food maker is scheduled to report earnings results for the third quarter of 2023 on Thursday, March 23 before the market opens. Here’s a look at what to expect from the earnings announcement:
results
Analysts project revenue of $4.9 billion for General Mills in Q3 2023, which would represent a 9% growth over the same period a year ago. In the second quarter of 2023, net sales increased 4% annually to $5.2 billion.
earnings
The consensus estimate is for EPS of $0.91 in Q3 2023 which compares to adjusted EPS of $0.84 reported in the year-ago period. In Q2 2023, adjusted EPS increased 12% to $1.10.
Points to note
General Mills sales in Q2 benefited from price increases implemented to combat inflation. These gains were partially offset by a decline in volume during the quarter. The company has been reshaping its portfolio through acquisitions and divestitures and a few months ago it has offloaded some parts of the business so that it can focus on those that have more growth potential.
GIS plans to increase production capacity in key platforms such as pet food, Mexican food, hot snacks, fruit snacks, and cereals. At a recent analyst event, the company highlighted two businesses it sees as key contributors to long-term growth – North American Retail and Pet Food.
The North American Retail segment has consistently managed to hold or grow shares in the majority of its priority businesses. In Q2, this segment generated double-digit sales, supported by gains in US Snacks, US Meals & Baking Solutions, and US Morning Foods.
The Pet Food segment has been able to expand distribution in the US and increase household penetration significantly over the past few years. The company expects to continue to grow Blue Buffalo brand in the long term as pet food and treat demand.
General Mills has innovation and expansion plans for its the desert dry dog food line, its natural pet treat portfolio, and its the taste natural cat food line. Also have plans to try the new fresh line from the fridge Blue Buffalo dog food Updates on product innovation plans and business expansion strategies are worth keeping an eye on.
Also read: General Mills ( GIS ) remains bullish on Pet business growth prospects despite headwinds
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