NYSE$GIS

General Mills Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported strong first-quarter results and announced dividend increase.

General Mills reported a strong first quarter in fiscal 2021, with net sales increasing by 9% to $4.4 billion and organic net sales up 10%. The company saw significant growth in operating profit and diluted earnings per share, driven by increased at-home food demand due to the COVID-19 pandemic. They also announced a 4% quarterly dividend increase.

  • Net sales increased 9 percent to $4.4 billion; organic net sales were up 10 percent.
  • Operating profit increased 29 percent to $854 million.
  • Diluted earnings per share (EPS) totaled $1.03, up 21 percent from the prior year.
  • Company announces 4 percent quarterly dividend increase to $0.51 per share.

Headline financials

Total Revenue

$4.36B

Previous: $4B+9.0%
EPS (adj)

$1.00

Previous: $0.79+26.6%
Organic Net Sales Growth

10.0%

No prior period
Capital Expenditures

-$117M

Previous: -$69.8M-67.6%
Free Cash Flow

$522M

Previous: $451M+15.8%
Net Income

$639M

Previous: $521M+22.7%
Operating Income

$854M

Previous: $662M+28.9%
Gross Profit

$1.59B

Previous: $1.39B+14.5%
Cash & Equivalents

$1.8B

Previous: $505M+255.9%
Total Assets

$31.3B

Previous: $30.3B+3.1%
Stock-Based Comp

$28.3M

Previous: $28.8M-1.7%

Revenue & EPS history

General Mills · Revenue · Quarterly

$4.36B

Q1 2021+9%vs Q1 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

General Mills · $4.57B total across 3 segments · Q2 2024

  • N.A. Retail
    $3.31B-2.0%
  • International
    $683M+1.7%
  • N.A. Foodservice
    $582M-0.2%

Forward guidance

General Mills continues to expect the largest factor impacting its fiscal 2021 performance will be the relative balance of at-home versus away-from-home consumer food demand, driven by the COVID-19 pandemic and resulting global macroeconomic headwinds. The company expects second-quarter at-home food demand to remain elevated compared to pre-pandemic levels, including high single-digit aggregate retail sales growth in General Mills’ North America Retail categories. The magnitude and duration of elevated at-home food demand remains highly uncertain, and as a result, the company is not currently providing a full-year outlook for fiscal 2021 growth in organic net sales, adjusted operating profit, and adjusted diluted EPS.

Tailwinds

  • Net sales growth in fiscal 2021 will be positively impacted by its superior execution as well as elevated at-home food demand, relative to the pre-pandemic period.
  • Compete effectively, everywhere we play, leading to market share gains, increased brand penetration, competitive service levels, and strengthened customer partnerships.
  • Drive efficiency to fuel investment.
  • Reduce leverage to increase financial flexibility.
  • Company expects to close fiscal 2021 with a net debt-to-trailing 12-month adjusted EBITDA ratio below 3.2x.

Headwinds

  • Anticipates headwinds to fiscal 2021 net sales growth from comparisons against the 53rd week.
  • Anticipates headwinds to fiscal 2021 net sales growth from the extra month of Pet results.
  • Anticipates headwinds to fiscal 2021 net sales growth from the pandemic-related increase in demand in the fourth quarter of fiscal 2020.
  • Company expects second-quarter adjusted operating profit margin to decline, driven by higher costs to service demand, including increased utilization of external manufacturing capacity that will most heavily impact the second quarter, as well as the comparison to the prior-year period that included a timing-related manufacturing leverage benefit.
  • Company expects full-year margin tailwinds from HMM savings and volume leverage to be offset by headwinds from input cost inflation, higher costs to service elevated demand, increased investment in brands and capabilities, and higher ongoing health and safety-related expenses.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.2%

Avg return

Earnings day

-0.7%

Avg return

5 days after

-0.6%

Avg return

30 days after

42%

30 / 72 earnings

Positive

+8.5%

Q4 2016

Best reaction

-11.0%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026+0.0%-3.6%-8.4%
Q2 2026+2.9%+0.8%-5.3%
Q1 2026-0.9%+1.0%-2.4%
Q4 2025-1.2%-1.7%-3.9%
Q3 2025-2.1%-3.8%-4.8%
Q2 2025-2.9%-3.6%-9.6%
Q1 2025+0.5%-0.4%-6.1%
Q4 2024-5.3%-5.9%-1.4%
Q3 2024+0.2%+0.7%+2.6%
Q2 2024-3.7%-3.3%-5.3%
Q1 2024-0.6%-1.7%-4.0%
Q4 2023-5.7%-4.7%-6.7%
Q3 2023+6.2%+6.1%+9.5%
Q2 2023-2.0%-2.0%-11.1%
Q1 2023+7.1%+4.3%+2.2%
Q4 2022+7.4%+7.9%+6.4%
Q3 2022+5.9%+6.7%+15.7%
Q2 2022-3.1%-2.7%+1.0%
Q1 2022+3.9%+2.8%+8.1%
Q4 2021+0.3%+0.3%-1.9%
Q3 2021-2.7%+2.1%+0.1%
Q2 2021+0.8%-0.5%-4.5%
Q1 2021+1.2%+3.3%+6.5%
Q4 2020-0.3%+0.9%+2.6%
Q3 2020-10.0%-20.8%+1.7%
Q2 2020+2.0%+1.1%+3.2%
Q1 2020-1.2%-2.1%-4.5%
Q4 2019-2.8%-0.7%-0.1%
Q3 2019+5.9%+8.1%+9.5%
Q2 2019+6.5%+2.4%+18.4%
Q1 2019-7.3%-6.9%-8.6%
Q4 2018-3.0%-5.7%-2.3%
Q3 2018-11.0%-9.3%-13.1%
Q2 2018+3.3%+4.3%+2.6%
Q1 2018-6.7%-5.6%-6.1%
Q4 2017-1.0%-0.6%-0.3%
Q3 2017-2.2%-1.8%-3.9%
Q2 2017-1.1%-1.4%-2.2%
Q1 2017+0.6%-1.2%-6.2%
Q4 2016+8.5%+9.4%+9.3%
Q3 2016+0.9%
Q2 2016-3.8%
Q1 2016+1.1%
Q4 2015+2.4%
Q3 2015+0.9%
Q2 2015+4.7%
Q1 2015-3.7%
Q4 2014-3.1%
Q3 2014+0.7%
Q2 2014-0.4%
Q1 2014-1.9%
Q4 2013+0.0%
Q3 2013+3.1%
Q2 2013-0.5%
Q1 2013+2.9%
Q4 2012-0.9%
Q3 2012-0.4%
Q2 2012+1.4%
Q1 2012+5.4%
Q4 2011-0.4%
Q3 2011-1.0%
Q2 2011-0.8%
Q1 2011+1.3%
Q4 2008-1.4%
Q4 2010-1.4%
Q3 2009-3.3%
Q3 2010-3.3%
Q2 2010+0.8%
Q1 2010-0.8%
Q4 2009-0.8%
Q1 2009-0.8%
Q2 2009-0.8%

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