Worth Watching Stock for Traders: General Mills, Inc. (NYSE:GIS)

On Wednesday, General Mills, Inc. (NYSE:GIS) above/below -0.91% and ended at $54.53. The stock market capitalization arrived at $32.908B and total traded volume was 6,550,536 shares. During last trade, its maximum trading price was registered $55.93 and it’s the minimum trading price was noted $53.63.

General Mills (GIS) recently stated results for the first quarter ended August 25, 2019.

First Quarter Results Summary

  • Net sales declined 2 percent to $4.0B. Organic net sales were down 1 percent, reflecting lower organic volume, partially offset by positive organic net price realization and mix across all operating sections.
  • Gross margin increased 190 basis points to 34.7 percent of net sales. Adjusted gross margin of 35.2 percent was 160 basis points above the previous year result that included a one-time purchase accounting inventory adjustment related to the Blue Buffalo acquisition.
  • Operating profit totaled $662M, up 10 percent from last year.Operating profit margin of 16.5 percent increased 180 basis points. Constant-currency adjusted operating profit increased 7 percent, driven by the purchase accounting impact in the previous year. Adjusted operating profit margin increased 130 basis points to 17.0 percent.
  • Net earnings attributable to General Mills totaled $521M, up 33 percent from a year ago, primarily reflecting higher operating profit, a lower effective tax rate, and lower net interest expense.
  • Diluted EPS of $0.85 increased 31 percent from the previous year. Adjusted diluted EPS totaled $0.79 in the first quarter, up 13 percent from the previous year in constant currency, driven primarily by higher adjusted operating profit, lower net interest expense, a lower adjusted effective tax rate, and higher non-service benefit plan income, partially offset by higher average diluted shares outstanding.

North America Retail Section
First-quarter net sales for General Mills’ North America Retail section totaled $2.38B, essentially matching year-before levels, with benefits from net price realization and mix offset by lower contributions from volume. The section maintained momentum in the U.S. Cereal operating unit, where net sales were up 1 percent, while improving trends in U.S. Yogurt and U.S. Snacks, where net sales were flat and down 1 percent, respectively. Net sales in the U.S. Meals & Baking unit declined 1 percent, and constant-currency net sales in Canada were also down 1 percent. First-quarter retail sales were flat in U.S. Nielsen-measured outlets. Section operating profit of $560M increased 2 percent, driven by HMM cost savings and benefits from positive net price realization and mix, partially offset by input cost inflation and higher brand-building investments.

Pet Section
First-quarter net sales for the Pet section increased 7 percent to $368M, driven by positive contributions from volume growth and positive net price realization and mix, partially offset by the comparison to an extra week of results in last year’s first quarter related to acquisition timing. Not Including the timing difference, net sales increased in the mid teens. Pet parent takeaway accelerated in the quarter, with all-channel retail sales up low double digits. Section operating profit totaled $81M contrast to $14M in the previous year, driven primarily by a $53M one-time purchase accounting inventory adjustment in the year-before period as well as higher net sales.

Convenience Stores & Foodservice Section
First-quarter net sales for the Convenience Stores & Foodservice section declined 4 percent to $445M, driven by lower bakery flour volume and unfavorable index pricing, partially offset by low single-digit growth for the Focus 6 platforms including strong performance on cereal and frozen baked goods. Section operating profit of $91M was 6 percent below the year-before result that grew 14 percent.

The corporation has PEG ratio of 2.90 and price to cash ratio of 73.29. EPS growth in past five years was 0.40% while EPS growth in next five years is projected to arrive at 6.53%. Sales growth past 5 years was measured at -1.20%.

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