General Mills, Inc. GIS shares are trading higher after the company reported a third-quarter FY24 sales decline of 1% year-on-year to $5.099 billion, beating the analyst consensus estimate of $4.962 billion.
Organic net sales decreased 1% and grew 7% on a 2-year compound growth basis.
North America Retail segment sales remained flat Y/Y at $3.2 billion. Pet segment sales declined 3% to $624 million, while International segment sales fell 3% to $680 million.
Adjusted EPS of $1.17 beat the analyst consensus estimate of $1.05.
Gross margin expanded 100 basis points Y/Y to 33.5%. Adjusted gross margin rose 20 basis points to 34%.
Operating margin expanded 370 basis points to 17.9%, and operating income for the quarter increased 25% to $910.7 million.
General Mills held $588.6 million in cash and equivalents as of February 25, 2024. Operating cash flow for nine months totaled $2.4 billion.
General Mills repurchased about 23.5 million shares of common stock through nine months of fiscal 2024 for a total of $1.6 billion.
“General Mills’ strategic focus on brand building, innovation, and in-store execution contributed to improved volume and market share trends in the third quarter,” said Chairman and CEO Jeff Harmening.
Outlook Reaffirmed: General Mills sees FY24 organic sales growth of -1% to 0%. The company sees FY24 adjusted EPS to grow 4% to 5% in constant currency.
Price Action: GIS shares are trading higher by 3.6% at $71.10 on the last check Wednesday.
Photo by Mike Mozart via Flickr
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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