NYSE$GIS

General Mills Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported results for the fourth quarter and fiscal year ended May 31, 2020.

General Mills reported strong Q4 results driven by increased at-home food demand due to the COVID-19 pandemic. Net sales increased by 21% to $5.0 billion, with organic net sales up 16%. Diluted EPS increased by 9% to $1.02, and adjusted diluted EPS rose by 33% in constant currency. The company is focused on delivering superior execution during the COVID-19 situation while continuing to invest in its brands and capabilities.

  • Net sales increased 21 percent to $5.0 billion and organic net sales were up 16 percent.
  • Operating profit of $830 million increased 16 percent; constant-currency adjusted operating profit was up 24 percent.
  • Diluted earnings per share (EPS) of $1.02 were up 9 percent; adjusted diluted EPS of $1.10 increased 33 percent in constant currency.
  • General Mills contributed $10 million in monetary and food donations to organizations addressing hunger and food access.

Headline financials

Total Revenue

$5.02B

Previous: $4.16B+20.7%
EPS (adj)

$1.10

Previous: $0.83+32.5%
Organic Net Sales Growth

16.0%

No prior period
Capital Expenditures

$191M

Previous: $170M+12.8%
Free Cash Flow

$3.2B

Previous: $610M+424.8%
Net Income

$626M

Previous: $570M+9.8%
Operating Income

$830M

Previous: $716M+15.9%
Gross Profit

$1.77B

Previous: $1.46B+21.0%
Cash & Equivalents

$1.68B

Previous: $450M+272.8%
Total Assets

$30.8B

Previous: $30.1B+2.3%
Stock-Based Comp

$28.9M

Previous: $19M+52.1%

Revenue & EPS history

General Mills · Revenue · Quarterly

$5.02B

Q4 2020+20.7%vs Q4 2019
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 expects the largest factor impacting its fiscal 2021 performance will be relative balance of at-home versus away-from-home consumer food demand. As a result, the company is not currently providing an outlook for fiscal 2021 growth in organic net sales, adjusted operating profit, and adjusted diluted EPS.

Tailwinds

  • General Mills expects net sales growth in fiscal 2021 will be positively impacted by its superior execution
  • General Mills expects net sales growth in fiscal 2021 will be positively impacted by elevated at-home food demand, relative to the pre-pandemic period.
  • The company anticipates that the combination of benefits from its HMM initiatives and volume leverage
  • The company expects to make further progress in fiscal 2021 in reducing its net-debt-to-adjusted-EBITDA ratio

Headwinds

  • The company anticipates headwinds to fiscal 2021 net sales growth from comparisons against the 53rd week
  • The company anticipates headwinds to fiscal 2021 net sales growth from the extra month of Pet results
  • The company anticipates headwinds to fiscal 2021 net sales growth from the pandemic-related increase in demand in the fourth quarter of fiscal 2020.
  • fiscal 2021 net sales growth may be negatively impacted by a potential reduction in consumers’ at-home food inventory
  • headwinds from input cost inflation, increased investment in brands and capabilities, higher costs to service elevated demand, and higher ongoing health and safety-related expenses will result in an adjusted operating profit margin that is approximately in line with fiscal 2020 levels.

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 Q4 2020

Historical avgQ4 2020

-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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