Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  General Mills, Inc.    GIS

GENERAL MILLS, INC.

(GIS)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

General Mills : Q1 Presentation

share with twitter share with LinkedIn share with facebook
09/23/2020 | 09:25am EDT

General Mills Earnings

First Quarter Fiscal 2021

September 23, 2020

1

A Reminder on Forward-looking Statements

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. In particular, our predictions about future net sales and earnings could be affected by a variety of factors, including: the impact of the COVID-19 pandemic on our business, suppliers, consumers, customers, and employees; disruptions or inefficiencies in the supply chain, including any impact of the COVID- 19 pandemic; competitive dynamics in the consumer foods industry and the markets for our products, including new product introductions, advertising activities, pricing actions, and promotional activities of our competitors; economic conditions, including changes in inflation rates, interest rates, tax rates, or the availability of capital; product development and innovation; consumer acceptance of new products and product improvements; consumer reaction to pricing actions and changes in promotion levels; acquisitions or dispositions of businesses or assets; changes in capital structure; changes in the legal and regulatory environment, including tax legislation, labeling and advertising regulations, and litigation; impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets, or changes in the useful lives of other intangible assets; changes in accounting standards and the impact of significant accounting estimates; product quality and safety issues, including recalls and product liability; changes in consumer demand for our products; effectiveness of advertising, marketing, and promotional programs; changes in consumer behavior, trends, and preferences, including weight loss trends; consumer perception of health-related issues, including obesity; consolidation in the retail environment; changes in purchasing and inventory levels of significant customers; fluctuations in the cost and availability of supply chain resources, including raw materials, packaging, and energy; effectiveness of restructuring and cost saving initiatives; volatility in the market value of derivatives used to manage price risk for certain commodities; benefit plan expenses due to changes in plan asset values and discount rates used to determine plan liabilities; failure or breach of our information technology systems; foreign economic conditions, including currency rate fluctuations; and political unrest in foreign markets and economic uncertainty due to terrorism or war. The company undertakes no obligation to publicly revise any forward-looking statements to reflect any future events or circumstances.

General Mills First Quarter Fiscal 2021

2

General Mills Earnings

First Quarter Fiscal 2021

September 23, 2020

Jeff Harmening

Chairman and

Chief Executive Officer

3

Today's Key Messages

  • Exceptional Performance in Q1
  • Enabled by Continued Focus on Employees and Consumers During COVID-19 Pandemic
  • Delivering on Fiscal 2021 Priorities
  • Resuming Dividend Growth, Ahead of Schedule

General Mills First Quarter Fiscal 2021

4

Operating in a Dynamic Environment

  • At-homeFood Demand Remains Elevated Globally
    • Developed Markets Moderated from F20 Q4; Q1 Demand +LDD in NAR and +MSD in EUAU
    • Emerging Market Recovery Mixed
  • Away-from-homeDemand Improved from F20 Q4, but Still Under Pressure
  • Adapting to Capture Incremental Demand
    • Adding Supply Chain Capacity - Internal and External
    • Higher Brand Investment and Shift to Digital Marketing & E-commerce

5

Exceptional Performance in Q1

+10%1

Organic Net Sales

+22%2

Adjusted Operating Profit

+27%2

Adjusted Diluted EPS

1

Non-GAAP measure. See appendix for reconciliation

6

2

Constant currency growth. Non-GAAP measure. See appendix for reconciliation

1

2

3

Our Fiscal 2021 Priorities

Compete

Compete Effectively,

Everywhere We Play

Fuel InvestmentsDrive Efficiency

to Fuel Investments in Brands and Capabilities

Reduce

Reduce Debt Leverage to

Increase Financial Flexibility

7

1 Competing Effectively: Growing Share

Holding or Growing Share in Key Markets

Holding or Growing Share in Key Categories

U.S.

Canada

France

Cereal

Snack Bars

Mexican

U.K.

China

Brazil

Pet Food

Ice Cream

Yogurt

(U.S., France, Canada)

Ref. Dough Dessert Mixes

(U.S., U.K.)

Source: Nielsen/IRI, U.S., Canada, U.K., France FYTD Aug, China; Brazil FYTD July, Aggregate share across tracked categories and geographies

8

Competing Effectively: Winning New Consumers

  • Significant, Broad-based Global Household Penetration Gains
  • U.S. Repeat Rates Higher than Pre-pandemic Levels and Ahead of Competition
  • New U.S. Consumers Over Index to Younger and Hispanic Households
  • Penetration Gains Outpacing Competition in U.S. Retail

Nielsen household penetration measured 52 wks ending 8/8/2020 vs pre-pandemic period defined as 52 wks ending 2/22/20

9

Competing Effectively: Winning New Consumers

Penetration Gains Outpacing Competition During the Pandemic in U.S. Retail

Change in Household Penetration

4.5

General Mills

Top Competitor

3.5

3.9

3.1

2.9

2.6

2.8

2.4

1.7 2.1

1.8

1.2

1.2

1.2

0.0

0.0

0.3

-0.4

-1.0

-1.9

Desserts

Ref.

Mexican

Dry

Soup

Hot

Cereal

Fruit

Yogurt

Snack

Dough

Dinners

Snacks

Snacks

Bars

Nielsen household penetration measured 52 wks ending 8/8/2020 vs pre-pandemic period defined as 52 wks ending 2/22/20

10

Competing Effectively:

Increasing the "Stickiness" of Demand

Meaningful Renovation

Relevant Innovation

11

Competing Effectively:

Increasing the "Stickiness" of Demand

Breakthrough Brand Building

Fueling E-commerce Growth

12

2 Driving Efficiency to Fuel Investments

Margin Tailwinds

Margin Headwinds

4% COGS HMM Savings

3% Input Cost Inflation

Volume Leverage from Internal

Higher Cost to Service Demand,

Capacity

Including External Manufacturing

Increased Brand and Capability

Investments

Ongoing Health & Safety Expenses

Objective: Deliver F21 Adjusted Operating Profit Margin* Roughly In Line with F20

*Non-GAAP measure

13

3 Reducing Debt Leverage and Resuming Dividend Growth

Net Debt to Adjusted EBITDA*

4.2x

3.9x

3.2x

3.0x

F18

F19

F20

Q1 F21

Pro-Forma

  • Significant Deleverage Since Blue Buffalo Acquisition (F18)
  • Returning to Normal Capital Allocation Priorities:
    1. Dividend Growth
    2. Strategic M&A
    3. Share Repurchase
  • Announced 4% Quarterly Dividend Increase, Payable Nov 2

*Non-GAAP measure. See appendix for reconciliation

14

General Mills Earnings

First Quarter Fiscal 2021

September 23, 2020

Kofi Bruce

Chief Financial Officer

15

First Quarter Fiscal 2021

Financial Results

Q1

TOTAL GENERAL MILLS

$MM

VS LY

Net Sales

$4,364

+9%

Organic Net Sales*

+10%

Adjusted Operating Profit*

$832

+22%1

Adjusted Diluted EPS*

$1.00

+27%1

*Non-GAAP measure. See appendix for reconciliation

16

(1) Constant currency growth rate. Non-GAAP measure. See appendix for reconciliation

Components of First Quarter Net Sales Growth

Organic

Net Sales*

= 10%

9%

+8 pts

+2 pts

-1 pt

Flat

Organic

Organic

Acquisitions /

Total Net Sales

Foreign

Volume

Price / Mix

Exchange

Divestitures

As Reported

*Non-GAAP measure

17

Table may not foot due to rounding

First Quarter Fiscal 2021

North America Retail

Segment Results

North America Retail

Q1

Organic Net Sales

+14%¹

Segment Op Profit

+24%²

Segment Highlights

  • Q1 net sales growth primarily driven by U.S. Meals & Baking and U.S. Cereal, reflecting pandemic-driven elevated at-home food demand
  • Held or grew share in 8 of top 10 U.S. categories in Q1
  • Q1 profit growth primarily driven by higher volume, partially offset by higher SG&A expenses, including increased media investment

(1) Organic net sales growth rate. Non-GAAP measure. See appendix for reconciliation

(2) Constant currency growth rate. Non-GAAP measure. See appendix for reconciliation

Source: Nielsen xAOC 13 weeks ending 8/29/2020

18

See slide 29 for net sales results by Operating Unit

First Quarter Fiscal 2021

Pet

Segment Results

Pet

Q1

Organic Net Sales

+6%¹

Segment Op Profit

+12%²

Segment Highlights

  • Q1 net sales growth driven by FDM and E-commerce sales
  • Reduction in at-home inventory during Q1 was a headwind to net sales
  • Continued household penetration and market share gains in Q1
  • Q1 profit growth primarily driven by higher volume and COGS HMM savings, partially offset by negative price/mix and higher SG&A, including increased media investment
  1. Organic net sales growth rate. Non-GAAP measure. See appendix for reconciliation
  2. Constant currency growth rate. Non-GAAP measure. See appendix for reconciliation

Source: Nielsen xAOC + Pet Retail 13 weeks ending 8/29/2020

19

First Quarter Fiscal 2021

Convenience Stores & Foodservice

Segment Results

CS&F

Q1

Organic Net Sales

-12%¹

Segment Op Profit

-24%

Segment Highlights

  • Q1 net sales decline due to pandemic-driven reduction in away-from-home food demand
    • Reduced consumer traffic impacted Restaurants, Lodging, and Convenience Stores; the impact moderated versus F20 Q4
  • Strong execution in Q1, with share growth in measured channels
  • Q1 profit decline driven by lower net sales

(1) Organic net sales growth rate. Non-GAAP measure. See appendix for reconciliation

20

Source: NPD ending July 2020; Nielsen ending August 2020

First Quarter Fiscal 2021

Europe & Australia

Segment Results

EUAU

Q1

Organic Net Sales

+7%¹

Segment Op Profit

+89%²

Segment Highlights

  • Q1 net sales growth primarily driven by Mexican Food, Retail Ice Cream, and Baking products
  • Q1 aggregate market share growth
  • Q1 profit growth driven by higher net sales, including positive price/mix

(1)

Organic net sales growth rate. Non-GAAP measure. See appendix for reconciliation

(2)

Constant currency growth rate. Non-GAAP measure. See appendix for reconciliation

21

Source: Nielsen/IRI FYTD through August 2020

First Quarter Fiscal 2021

Asia & Latin America

Segment Results

ASLA

Q1

Organic Net Sales

+17%¹

Segment Op Profit

+68%²

Segment Highlights

  • Q1 LATAM net sales growth +DD driven by Yoki and Kitano in Brazil
  • Q1 Asia net sales growth +DD driven primarily by Wanchai Ferry and Häagen-Dazs Retail in China, partially offset by away-from-home declines
  • Q1 profit growth driven by higher net sales

(1)

Organic net sales growth rate. Non-GAAP measure. See appendix for reconciliation

22

(2)

Constant currency growth rate. Non-GAAP measure. See appendix for reconciliation

First Quarter Fiscal 2021

Joint Ventures

Q1 AFTER-TAX EARNINGS: $41MM VS. $22MM LY

JV Results

NET SALES

Q1

CPW

+9%¹

HDJ

-1%¹

JV Highlights

  • Q1 broad-based CPW net sales growth driven by Latin America, Turkey, UK, and Europe Region
  • HDJ volume decline partially offset by positive price/mix
  • Q1 JV after-tax earnings growth primarily driven by higher net sales and volume leverage at CPW

(1) Net sales growth in constant currency

23

First Quarter Fiscal 2021

Margin Results

Adjusted Gross Margin*

Adjusted Operating Profit Margin*

(% OF NET SALES)

(% OF NET SALES)

36.2%

19.1%

35.2%

17.0%

Q1 F20

Q1 F21

Q1 F20

Q1 F21

  • Q1 Adj. Gross Margin expansion driven primarily by volume leverage, partially offset by health and safety expenses and costs to secure incremental capacity
  • Q1 Adj. Op Profit Margin expansion driven by higher Adj. Gross Margin and SG&A leverage

*Non-GAAP measure. See appendix for reconciliation

24

First Quarter Fiscal 2021

Other Income Statement Items

  • Unallocated Corporate Expenses Increased $8MM ex. Certain Items
  • Net Interest Expense Decreased $8MM
  • Adjusted Effective Tax Rate 21.9% vs. 20.9% LY*
  • Average Diluted Shares Outstanding Up 1%

*Non-GAAP measure. See appendix for reconciliation

25

First Quarter Fiscal 2021

Balance Sheet and Cash Flow

Operating Cash Flow

($ IN MILLIONS)

$572$584

  • Core Working Capital -$570MM vs. LY
  • Capital Investments = $117MM
  • Dividends Paid = $303MM
  • Leverage Ratio* = 3.0x

F20F21

*Net Debt to Trailing 12-MonthAdjusted-EBITDA Ratio. Non-GAAP measure. See appendix for reconciliation

26

Year-to-go Fiscal 2021 Assumptions

  • Balance of Full-yearAt-home and Away-from-home Food Demand Remains Uncertain
  • Anticipate Elevated At-home Demand in Q2, with North America Retail Categories Growing ~HSD
  • Expect Q4 Net Sales to Decline Due to Difficult Comparison, Including Calendar Differences (F20 Q4 Net Sales +21%)
  • Expect Q2 Adj. Op Profit Margin* Down vs LY; Targeting Full-year Adj. Op Profit Margin* Roughly in Line with F20

*Non-GAAP measures

27

Today's Key Messages

  • Exceptional Performance in Q1
  • Enabled by Continued Focus on Employees and Consumers During COVID-19 Pandemic
  • Delivering on Fiscal 2021 Priorities
  • Resuming Dividend Growth, Ahead of Schedule

General Mills First Quarter Fiscal 2021

28

Appendix: First Quarter Fiscal 2021

North America Retail Operating Unit Results

NET SALES % VS. LY

Operating Unit

Q1

U.S. Meals & Baking

+31%

U.S. Cereal

+10%

U.S. Yogurt

+5%

Canada

+3%

Canada Constant-currency

+5%¹

U.S. Snacks

-2%

(1) Net sales growth in constant currency. Non-GAAP measure. See appendix for reconciliation

29

Reconciliation of First Quarter Fiscal 2021

Organic Net Sales Growth

(FISCAL YEAR)

Q1

Organic

Organic

Organic

Foreign

Acquisitions

Reported Net

Volume

Price/Mix

Net Sales

Exchange

& Divestitures

Sales Growth

North America Retail

17 pts

(2) pts

14%

-

-

14%

Convenience Stores

(9) pts

(3) pts

(12)%

-

-

(12)%

& Foodservice

Europe & Australia

Flat

7 pts

3 pts

(1) pt

8%

7%

Asia & Latin America

20 pts

(4) pts

(10) pts

-

6%

17%

Pet

11 pts

(4) pts

-

-

6%

6%

Total

8 pts

2 pts

10%

(1) pt

-

9%

*Table may not foot due to rounding

30

Reconciliation of First Quarter Fiscal 2021 Adjusted

Operating Profit Constant-currency Growth Rate

(FISCAL YEARS, $ IN MILLIONS)

Q1

2021

2020

Change

Operating profit as reported

$

853.7

$ 662.4

29 %

Product recall costs

7.1

-

Restructuring charges

1.0

14.3

Investment activity, net

(13.0)

(9.5)

Mark-to-market effects

(16.4)

15.0

Adjusted operating profit

$

832.5

$ 682.1

22 %

Foreign currency exchange impact

Flat

Adjusted operating profit growth,

on a constant-currency basis

22 %

*Table may not foot due to rounding

31

Reconciliation of First Quarter Fiscal 2021 Adjusted

Diluted EPS and Related Constant-currency Growth Rates

(FISCAL YEARS)

Q1

Per Share Data

2021

2020

Change

Diluted earnings per share, as reported

$

1.03

$

0.85

21 %

Product recall costs**

0.01

-

Restructuring charges**

-

0.02

Tax item

-

(0.09)

Mark-to-market effects**

(0.02)

0.02

Investment activity, net**

(0.02)

(0.01)

Adjusted diluted earnings per share

$

1.00

$

0.79

27 %

Foreign currency exchange impact

Flat

Adjusted diluted earnings per share growth,

on a constant-currency basis

27 %

*Table may not foot due to rounding

**See reconciliation of tax rate excluding items for tax impact of individual items

32

Reconciliation of Net Debt-to-Adjusted EBITDA Ratio

(FISCAL YEARS, $ IN MILLIONS)

Trailing 12 Months

2020

2019

2018*

Ending 2021 Q1

Full-year

Full-year

Full-year

Net earnings, including earnings attributable to

redeemable and noncontrolling interests, as reported

$

2,328.7

$

2,210.8

$

1,786.2

$

2,284.4

Income taxes

584.1

480.5

367.8

104.3

Interest, net

458.9

466.5

521.8

527.8

Depreciation and amortization

586.7

594.7

620.1

642.6

EBITDA

$

3,958.4

$

3,752.5

$

3,295.9

$

3,559.1

After-tax earnings from joint ventures

(110.6)

(91.1)

(72.0)

(84.7)

Restructuring charges

36.9

50.2

77.6

82.7

Product recall costs

26.4

19.3

-

-

Investment activity, net

4.9

8.4

(22.8)

-

Project-related costs

1.5

1.5

1.3

11.3

Mark-to-market effects

(6.7)

24.7

36.0

(32.1)

Asset impairments

-

-

207.4

96.9

Divestitures loss

-

-

30.0

-

Acquisition integration costs

25.6

-

Hyperinflationary accounting

-

-

3.2

-

Legal recovery

-

-

(16.2)

-

Adjusted EBITDA

$

3,910.8

$

3,765.6

$

3,566.0

$

3,633.2

Total debt

$

13,621.3

$

13,539.5

$

14,490.0

$

15,818.6

Cash

1,796.7

1,677.8

450.0

399.0

Net debt

$

11,824.6

$

11,861.7

$

14,040.0

$

15,419.6

Net debt-to-adjusted EBITDA ratio

3.0

3.2

3.9

4.2

*On a Pro-forma basis

33

**Table may not foot due to rounding

Reconciliation of First Quarter Fiscal 2021

Constant-currency Segment Operating Profit Growth

(FISCAL YEAR)

Q1

Percentage Change

Impact of Foreign

Percentage Change in

in Operating Profit

Currency

Operating Profit on

as Reported

Exchange

Constant-Currency

North America Retail

24 %

Flat

24 %

Europe & Australia

93 %

4 pts

89 %

Pet

12 %

Flat

12 %

Asia & Latin America

99 %

31 pts

68 %

*Table may not foot due to rounding

34

Reconciliation of First Quarter Fiscal 2021

Adjusted Gross Margin

(FISCAL YEARS)

Q1

2021

2020

% of

% of

Net Sales

Net Sales

Gross margin as reported

36.4 %

34.7

%

Product recall costs

0.2

%

-

%

Restructuring charges

-

%

0.2

%

Mark-to-market effects

(0.4) %

0.4

%

Adjusted gross margin

36.2 %

35.2 %

*Table may not foot due to rounding

35

Reconciliation of First Quarter Fiscal 2021

Adjusted Operating Profit Margin

(FISCAL YEARS)

Q1

2021

2020

Percent

Percent of

Net Sales

Net Sales

Operating profit as reported

19.6 %

16.5 %

Mark-to-market effects

(0.4) %

0.4

%

Investment activity, net

(0.3) %

(0.2) %

Product recall costs

0.2

%

-

%

Restructuring charges

-

%

0.4

%

Adjusted operating profit

19.1 %

17.0 %

*Table may not foot due to rounding

36

Reconciliation of First Quarter Fiscal 2021

Tax Rate Excluding Items

(FISCAL YEARS, $ IN MILLIONS EXCEPT PER SHARE DATA)

Q1

2021

2020

Pretax

Income

Pretax

Income

Earnings**

Taxes

Earnings**

Taxes

As reported

$

775.9

$

170.8

$

573.9

$

67.2

Product recall costs

7.1

0.8

-

-

Restructuring charges

1.0

0.2

14.3

2.6

Tax item

-

-

-

53.1

Investment activity, net

(13.0)

(3.0)

(9.5)

(2.2)

Mark-to-market effects

(16.4)

(3.8)

15.0

3.5

As adjusted

$

754.6

$

165.1

$

593.7

$

124.2

Effective tax rate:

As reported

22.0%

11.7%

As adjusted

21.9%

20.9%

Sum of adjustment to income taxes

$

-5.7

$

57.0

Average number of common shares - diluted EPS

619.8

611.5

Impact of income tax adjustments on adjusted diluted EPS

$

-0.01

$

0.09

*Table may not foot due to rounding

37

**Earnings before income taxes and after-tax earnings from joint ventures

Reconciliation of First Quarter Fiscal 2021 Canada Operating Unit Constant-Currency Net Sales Growth

(FISCAL YEAR)

2021

Percentage

Impact of

Percentage Change in

in Net Sales

Currency

Net Sales on Constant-

as Reported

Exchange

Currency Basis

Q1

3 %

-2 pts

5 %

*Table may not foot due to rounding

38

Disclaimer

General Mills Inc. published this content on 23 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 September 2020 12:24:01 UTC


share with twitter share with LinkedIn share with facebook
All news about GENERAL MILLS, INC.
10/29COVID-driven home dining boom boosts U.S. food giants again
RE
10/29GENERAL MILLS : and its Foundation Expand COVID-19 Charitable Response to $14 Mi..
BU
10/15GENERAL MILLS : Monster Cereals Giving Away 20” Character Busts Created by..
BU
10/14GENERAL MILLS : Leads Food & Beverage Sector in America's Most Just Companies Li..
BU
10/14CUMMINS : Elects Kim Nelson to its Board of Directors
AQ
10/08McDonald's Boosts Sales With Faster Drive-Throughs and Travis Scott
DJ
10/08GENERAL MILLS, INC. : Ex-dividend day for
FA
10/07GENERAL MILLS : Wheaties Unites with LeBron James and His Foundation to Champion..
BU
10/05Consumers Are Eating Healthier and Cooking More, Food Executives Say
DJ
09/29GENERAL MILLS : Jennifer Lopez and Yoplait® Challenge Families to Dance and Play..
BU
More news
Financials (USD)
Sales 2021 17 492 M - -
Net income 2021 2 238 M - -
Net Debt 2021 11 293 M - -
P/E ratio 2021 16,1x
Yield 2021 3,45%
Capitalization 36 142 M 36 142 M -
EV / Sales 2021 2,71x
EV / Sales 2022 2,68x
Nbr of Employees 35 000
Free-Float 80,9%
Chart GENERAL MILLS, INC.
Duration : Period :
General Mills, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GENERAL MILLS, INC.
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 21
Average target price 63,82 $
Last Close Price 59,12 $
Spread / Highest target 23,5%
Spread / Average Target 7,94%
Spread / Lowest Target -13,7%
EPS Revisions
Managers
NameTitle
Jeffrey L. Harmening Chairman & Chief Executive Officer
Kofi A. Bruce Chief Financial Officer
Jodi J. Benson Chief Innovation, Technology & Quality Officer
Jaime Montemayor Chief Technology & Digital Officer
Stephen A. Odland Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
GENERAL MILLS, INC.10.38%36 203
NESTLÉ S.A.-1.60%313 429
MONDELEZ INTERNATIONAL, INC.-3.56%75 873
THE KRAFT HEINZ COMPANY-4.79%37 399
DANONE S.A-35.86%35 871
THE HERSHEY COMPANY-6.48%28 672