General Mills narrows FY24 adjusted EPS view to up 4%-5% from up 4%-6%

Consensus $4.47. Cuts FY24 organic revenue view to down 1% to flat from up 3%-4%, reflecting a slower volume recovery in FY24. Sees FY24 free cash flow conversion 95% of adjusted after-tax earnings. The company said, “General Mills continues to expect 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. Relative to its previous expectation, the company now expects a slower volume recovery in fiscal 2024, reflecting a more cautious consumer economic outlook and a faster normalization of competitive on-shelf availability. For the full year, the company continues to expect input cost inflation of approximately 5 percent of total cost of goods sold, driven primarily by labor inflation that impacts sourcing, manufacturing, and logistics costs. The company now expects to generate Holistic Margin Management (HMM) cost savings of roughly 5 percent of cost of goods sold in fiscal 2024, up from its previous expectation of 4 percent and higher than the 3 percent achieved in fiscal 2023.”