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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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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