General Mills Q3 2021 Earnings Report
Key Takeaways
General Mills reported an 8 percent increase in net sales to $4.5 billion for the third quarter of fiscal year 2021, with organic net sales up 7 percent. Operating profit increased 27 percent to $827 million, and diluted EPS rose 30 percent to $0.96. The company is resuming share repurchase activity and advancing its Accelerate strategy.
Net sales increased 8 percent to $4.5 billion; organic net sales increased 7 percent.
Operating profit increased 27 percent to $827 million; constant-currency adjusted operating profit increased 5 percent.
Diluted earnings per share (EPS) totaled $0.96, up 30 percent from the prior year; adjusted diluted EPS of $0.82 increased 6 percent in constant currency.
Company provides outlook for full-year organic net sales growth and adjusted operating profit margin; announces resumption of share repurchase activity beginning in the fourth quarter.
General Mills
General Mills
General Mills Revenue by Segment
Forward Guidance
General Mills expects continued elevated consumer demand for food at home through the remainder of fiscal 2021. Full-year organic net sales are expected to increase approximately 3.5 percent. Full-year fiscal 2021 adjusted operating profit margin is expected to be approximately in line with fiscal 2020 levels.
Positive Outlook
- Strong year-to-date organic net sales growth.
- Continued elevated consumer demand for food at home.
- Expected increase in full-year organic net sales.
- Adjusted operating profit margin expected to be approximately in line with fiscal 2020 levels.
- Resumption of share repurchase activity.
Challenges Ahead
- Difficult comparison in the fourth quarter due to the initial pandemic-driven surge in at-home food demand.
- Extra month of results in the Pet segment affecting comparison.
- Higher input cost inflation.
- Higher logistics costs.
- Potential impact of COVID-19 on business, suppliers, consumers, customers, and employees.