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Aug 30, 2020
General Mills Q1 2021 Earnings Report
Reported strong first-quarter results and announced dividend increase.
Key Takeaways
General Mills reported a strong first quarter in fiscal 2021, with net sales increasing by 9% to $4.4 billion and organic net sales up 10%. The company saw significant growth in operating profit and diluted earnings per share, driven by increased at-home food demand due to the COVID-19 pandemic. They also announced a 4% quarterly dividend increase.
Net sales increased 9 percent to $4.4 billion; organic net sales were up 10 percent.
Operating profit increased 29 percent to $854 million.
Diluted earnings per share (EPS) totaled $1.03, up 21 percent from the prior year.
Company announces 4 percent quarterly dividend increase to $0.51 per share.
Revenue by Segment
Forward Guidance
General Mills continues to expect the largest factor impacting its fiscal 2021 performance will be the relative balance of at-home versus away-from-home consumer food demand, driven by the COVID-19 pandemic and resulting global macroeconomic headwinds. The company expects second-quarter at-home food demand to remain elevated compared to pre-pandemic levels, including high single-digit aggregate retail sales growth in General Mills’ North America Retail categories. The magnitude and duration of elevated at-home food demand remains highly uncertain, and as a result, the company is not currently providing a full-year outlook for fiscal 2021 growth in organic net sales, adjusted operating profit, and adjusted diluted EPS.
Positive Outlook
- Net sales growth in fiscal 2021 will be positively impacted by its superior execution as well as elevated at-home food demand, relative to the pre-pandemic period.
- Compete effectively, everywhere we play, leading to market share gains, increased brand penetration, competitive service levels, and strengthened customer partnerships.
- Drive efficiency to fuel investment.
- Reduce leverage to increase financial flexibility.
- Company expects to close fiscal 2021 with a net debt-to-trailing 12-month adjusted EBITDA ratio below 3.2x.
Challenges Ahead
Historical Earnings Impact
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Avg. Return Before/After Earnings
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