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Nov 29, 2020
General Mills Q2 2021 Earnings Report
General Mills' Q2 2021 results showed net sales and organic net sales increased by 7 percent, with diluted EPS up 17 percent.
Key Takeaways
General Mills reported strong second-quarter results with a 7% increase in net sales, reaching $4.7 billion, and a 13% increase in operating profit to $917 million. Diluted earnings per share (EPS) rose by 17% to $1.11, and adjusted diluted EPS increased by 9% in constant currency. The company has updated its outlook for full-year adjusted operating profit margin.
Net sales increased 7 percent to $4.7 billion; organic net sales were up 7 percent.
Operating profit increased 13 percent to $917 million; constant-currency adjusted operating profit was up 6 percent.
Diluted earnings per share (EPS) totaled $1.11, up 17 percent from the prior year; adjusted diluted EPS of $1.06 increased 9 percent in constant currency.
Company outlines expectations for continued strong top- and bottom-line growth in the third quarter and updates outlook for full-year adjusted operating profit margin
General Mills
General Mills
General Mills Revenue by Segment
Revenue by Segment
North America Retail Revenue
CapyFin.com Forward Guidance
General Mills expects continued elevated consumer demand for food at home through the remainder of fiscal 2021 and anticipates continued strong top- and bottom-line growth in the third quarter of fiscal 2021, with organic net sales growth roughly similar to the second quarter’s growth rate and an adjusted operating profit margin in line with the year-ago period. Full-year fiscal 2021 adjusted operating profit margin will be in line or better than the previous year.
Positive Outlook
- Continued elevated consumer demand for food at home
- Expects to generate continued strong top- and bottom-line growth in the third quarter of fiscal 2021
- Organic net sales growth roughly similar to the second quarter’s growth rate
- Adjusted operating profit margin in line with the year-ago period
- Full-year fiscal 2021 adjusted operating profit margin will be in line or better than the previous year
Challenges Ahead
- Magnitude and duration of elevated at-home food demand remains highly uncertain
- Not currently providing a full-year outlook for fiscal 2021 growth in organic net sales
- Not currently providing a full-year outlook for adjusted operating profit
- Not currently providing a full-year outlook for adjusted diluted EPS
- Ongoing virus concerns in many markets around the world