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Aug 29, 2021
General Mills Q1 2022 Earnings Report
General Mills reported first quarter fiscal year 2022 results with net sales increasing by 4 percent and diluted EPS decreasing by 1 percent.
Key Takeaways
General Mills reported strong first-quarter results, with both top- and bottom-line performance exceeding expectations. Net sales increased by 4 percent to $4.5 billion, and diluted EPS totaled $1.02. The company reaffirmed its full-year fiscal 2022 outlook, reflecting confidence in its Accelerate strategy and ability to navigate a dynamic operating environment.
Net sales increased 4 percent to $4.5 billion; organic net sales were up 2 percent.
Operating profit declined 1 percent to $844 million; constant-currency adjusted operating profit was down 2 percent.
Diluted earnings per share (EPS) totaled $1.02, down 1 percent from the prior year; adjusted diluted EPS of $0.99 was down 2 percent in constant currency.
Company reaffirms full-year fiscal 2022 outlook.
General Mills
General Mills
General Mills Revenue by Segment
Revenue by Segment
North America Retail Revenue
CapyFin.com Forward Guidance
General Mills reaffirmed its key full-year fiscal 2022 targets.
Positive Outlook
- Organic net sales are expected to be toward the higher end of the company’s initial guidance range of down 1 to 3 percent, reflecting stronger-than-expected net sales performance in the first quarter.
- Constant-currency adjusted operating profit is expected to be toward the higher end of the company’s initial guidance ranges of down 2 to 4 percent largely due to the impact of the pet treats acquisition.
- Constant-currency adjusted diluted EPS are each expected to be toward the higher end of the company’s initial guidance ranges of flat to down 2 percent, largely due to the impact of the pet treats acquisition, which is estimated to add approximately 2 cents to fiscal 2022 adjusted diluted EPS.
- Free cash flow conversion is expected to be approximately 95 percent of adjusted after-tax earnings.
- The above targets exclude the impact of the European Yoplait divestiture, which is scheduled to close by the end of the calendar year.
Challenges Ahead
- Predictions about future net sales and earnings could be affected by the impact of the coronavirus (COVID-19) pandemic on our business, suppliers, consumers, customers, and employees.
- Predictions about future net sales and earnings could be affected by disruptions or inefficiencies in the supply chain, including any impact of the coronavirus (COVID-19) pandemic.
- Predictions about future net sales and earnings could be affected by competitive dynamics in the consumer foods industry and the markets for our products, including new product introductions, advertising activities, pricing actions, and promotional activities of our competitors
- Predictions about future net sales and earnings could be affected by economic conditions, including changes in inflation rates, interest rates, tax rates, or the availability of capital.
- Predictions about future net sales and earnings could be affected by foreign economic conditions, including currency rate fluctuations; and political unrest in foreign markets and economic uncertainty due to terrorism or war.