- General Mills Inc GIS reported second-quarter FY22 sales growth of 6.5% year-on-year, to $5.02 billion, beating the analyst consensus of $4.84 billion.
- North America Retail segment sales increased 2% Y/Y. Pet segment sales increased 29%, while Convenience Stores & Foodservice sales rose 23%.
- Adjusted EPS of $0.99 missed the consensus of $1.05.
- The gross margin contracted 400 basis points Y/Y to 32.5%. The operating margin shrank 350 basis points to 15.9%, and operating income for the quarter fell 13% to $800 million.
- General Mills held $1.02 billion in cash and equivalents as of November 28, 2021. Net cash provided by operating activities totaled $1.50 billion for six months in FY22.
- "In the face of an unprecedented combination of input cost inflation and supply chain disruptions, we're moving quickly to keep our trusted brands on store shelves for consumers while driving net price realization to protect our bottom line," said Chairman and CEO Jeff Harmening.
- Outlook: General Mills sees FY22 organic net sales to increase 4% - 5% (prior view toward the higher end of the range of down 1% - 3%).
- The company sees constant-currency adjusted EPS of down 2% - up 1% (prior view toward the higher end of the range of flat to down 2%).
- Price Action: GIS shares are trading lower by 3.47% at $65.44 in premarket on the last check Tuesday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.