NYSE$GIS

General Mills Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported profitable growth driven by effective execution and strategic focus on brand investment.

General Mills reported an 8 percent increase in net sales to $4.5 billion for the third quarter of fiscal year 2021, with organic net sales up 7 percent. Operating profit increased 27 percent to $827 million, and diluted EPS rose 30 percent to $0.96. The company is resuming share repurchase activity and advancing its Accelerate strategy.

  • Net sales increased 8 percent to $4.5 billion; organic net sales increased 7 percent.
  • Operating profit increased 27 percent to $827 million; constant-currency adjusted operating profit increased 5 percent.
  • Diluted earnings per share (EPS) totaled $0.96, up 30 percent from the prior year; adjusted diluted EPS of $0.82 increased 6 percent in constant currency.
  • Company provides outlook for full-year organic net sales growth and adjusted operating profit margin; announces resumption of share repurchase activity beginning in the fourth quarter.

Headline financials

Total Revenue

$4.52B

Previous: $4.18B+8.1%
EPS (adj)

$0.82

Previous: $0.77+6.5%
Organic Net Sales Growth

7.0%

Previous: 0.0%
Capital Expenditures

-$346M

Previous: -$269M-28.6%
Free Cash Flow

$249M

Previous: $185M+35.0%
Net Income

$596M

Previous: $454M+31.2%
Operating Income

$827M

Previous: $651M+27.0%
Gross Profit

$1.55B

Previous: $1.4B+10.7%
Cash & Equivalents

$2.75B

Previous: $607M+353.8%
Total Assets

$32.6B

Previous: $30.2B+7.9%
Stock-Based Comp

$20.8M

Previous: $18.2M+14.3%

Revenue & EPS history

General Mills · Revenue · Quarterly

$4.52B

Q3 2021+8.1%vs Q3 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. Full-year organic net sales are expected to increase approximately 3.5 percent. Full-year fiscal 2021 adjusted operating profit margin is expected to be approximately in line with fiscal 2020 levels.

Tailwinds

  • Strong year-to-date organic net sales growth.
  • Continued elevated consumer demand for food at home.
  • Expected increase in full-year organic net sales.
  • Adjusted operating profit margin expected to be approximately in line with fiscal 2020 levels.
  • Resumption of share repurchase activity.

Headwinds

  • Difficult comparison in the fourth quarter due to the initial pandemic-driven surge in at-home food demand.
  • Extra month of results in the Pet segment affecting comparison.
  • Higher input cost inflation.
  • Higher logistics costs.
  • Potential impact of COVID-19 on business, suppliers, consumers, customers, and employees.

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 Q3 2021

Historical avgQ3 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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