NYSE$GIS

General Mills Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

General Mills' Q2 2021 results showed net sales and organic net sales increased by 7 percent, with diluted EPS up 17 percent.

General Mills reported strong second-quarter results with a 7% increase in net sales, reaching $4.7 billion, and a 13% increase in operating profit to $917 million. Diluted earnings per share (EPS) rose by 17% to $1.11, and adjusted diluted EPS increased by 9% in constant currency. The company has updated its outlook for full-year adjusted operating profit margin.

  • Net sales increased 7 percent to $4.7 billion; organic net sales were up 7 percent.
  • Operating profit increased 13 percent to $917 million; constant-currency adjusted operating profit was up 6 percent.
  • Diluted earnings per share (EPS) totaled $1.11, up 17 percent from the prior year; adjusted diluted EPS of $1.06 increased 9 percent in constant currency.
  • Company outlines expectations for continued strong top- and bottom-line growth in the third quarter and updates outlook for full-year adjusted operating profit margin

Headline financials

Total Revenue

$4.72B

Previous: $4.42B+6.8%
EPS (adj)

$1.06

Previous: $0.95+11.6%
Organic Net Sales Growth

7.0%

Previous: 1.0%+600.0%
Capital Expenditures

-$226M

Previous: -$159M-42.7%
Free Cash Flow

$462M

Previous: $422M+9.4%
Net Income

$688M

Previous: $581M+18.5%
Operating Income

$917M

Previous: $811M+13.0%
Gross Profit

$1.72B

Previous: $1.57B+9.7%
Cash & Equivalents

$2.58B

Previous: $560M+361.0%
Total Assets

$32.3B

Previous: $30.5B+6.1%
Stock-Based Comp

$20.4M

Previous: $19M+7.4%

Revenue & EPS history

General Mills · Revenue · Quarterly

$4.72B

Q2 2021+6.8%vs Q2 2020
Beat estimate in 16 of 16 quarters(100%)
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 expects continued elevated consumer demand for food at home through the remainder of fiscal 2021 and anticipates continued strong top- and bottom-line growth in the third quarter of fiscal 2021, with organic net sales growth roughly similar to the second quarter’s growth rate and an adjusted operating profit margin in line with the year-ago period. Full-year fiscal 2021 adjusted operating profit margin will be in line or better than the previous year.

Tailwinds

  • Continued elevated consumer demand for food at home
  • Expects to generate continued strong top- and bottom-line growth in the third quarter of fiscal 2021
  • Organic net sales growth roughly similar to the second quarter’s growth rate
  • Adjusted operating profit margin in line with the year-ago period
  • Full-year fiscal 2021 adjusted operating profit margin will be in line or better than the previous year

Headwinds

  • Magnitude and duration of elevated at-home food demand remains highly uncertain
  • Not currently providing a full-year outlook for fiscal 2021 growth in organic net sales
  • Not currently providing a full-year outlook for adjusted operating profit
  • Not currently providing a full-year outlook for adjusted diluted EPS
  • Ongoing virus concerns in many markets around the world

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 Q2 2021

Historical avgQ2 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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