- General Mills Inc (NYSE:GIS) reported third-quarter FY22 sales growth of 0.4% year-on-year, to $4.54 billion, marginally missing the consensus of $4.56 billion. Organic net sales increased 4%.
- North America Retail segment sales increased 1% Y/Y to $2.81 billion. Pet segment sales increased 30% to $568 million, while International segment sales fell 23% to $721 million.
- Adjusted EPS of $0.84 topped the consensus of $0.78.
- The gross margin contracted 350 basis points Y/Y to 30.9%. Adjusted gross margin was down 160 basis points to 31.4%.
- Operating margin compressed 30 basis points to 18%, and operating income for the quarter fell 1% to $815 million.
- General Mills held $844.4 million in cash and equivalents as of February 27, 2022. Net cash provided by operating activities totaled $2.23 billion for nine months in FY22.
- "We expect to drive strong growth in the fourth quarter, fueled by accelerating net price realization," said Chairman and CEO Jeff Harmening.
- Outlook: General Mills raised FY22 constant-currency organic net sales growth forecast to 5% from the previous view of 4% - 5%.
- The company sees constant-currency adjusted EPS of flat to up 2% (prior view down 2% - up 1%).
- Price Action: GIS shares are trading higher by 5.01% at $65.82 on the last check Wednesday.
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General Mills' Q3 Bottom-Line Beats Street View, Boosts FY22 Outlook
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