Loading...
•
May 30, 2021
General Mills Q4 2021 Earnings Report
General Mills reported a decrease in net sales and operating profit for the fourth quarter of fiscal year 2021, reflecting comparison against the surge in at-home food demand at the outset of the pandemic in the prior year.
Key Takeaways
General Mills reported a 10 percent decrease in net sales to $4.5 billion and a 34 percent decrease in operating profit to $548 million for the fourth quarter of fiscal 2021. The results reflect the comparison against the surge in at-home food demand at the outset of the pandemic in the prior year.
Net sales declined 10 percent to $4.5 billion; organic net sales were down 6 percent.
Operating profit of $548 million was down 34 percent.
Diluted earnings per share (EPS) of $0.68 declined 33 percent.
Adjusted diluted EPS of $0.91 were down 19 percent in constant currency.
General Mills
General Mills
General Mills Revenue by Segment
Revenue by Segment
North America Retail Revenue
CapyFin.com Forward Guidance
General Mills expects organic net sales to decline 1 to 3 percent and constant-currency adjusted diluted EPS are expected to range between flat and down 2 percent from the base of $3.79 earned in fiscal 2021.
Positive Outlook
- Strong HMM cost savings expected to total roughly 4 percent of cost of goods sold.
- Positive net price realization generated through its Strategic Revenue Management capability, including pricing actions the company has already announced across most of its portfolio.
- Company is addressing the inflationary environment.
- Company expects away-from-home food demand is expected to continue to recover in fiscal 2022
- Company expects ongoing elevated consumer demand for food at home, relative to pre-pandemic levels.
Challenges Ahead
- Organic net sales are expected to decline 1 to 3 percent, reflecting the outlook for lower consumer demand.
- Constant-currency adjusted operating profit is expected to decline 2 to 4 percent from the base of $3.2 billion reported in fiscal 2021.
- Constant-currency adjusted diluted EPS are expected to range between flat and down 2 percent from the base of $3.79 earned in fiscal 2021.
- Company expects at-home food demand will decline year over year in fiscal 2022 across most of its core markets
- Total input cost inflation is currently expected to be approximately 7 percent of cost of goods sold in fiscal 2022.