General Mills, Inc. (NYSE: GIS)
General Mills stock sank 7% in early trade on Tuesday after the company issued mixed results for its first quarter.
The Minneapolis-based firm fell short of Wall Street’s expectations on sales with North America segment revenue dropping 2.1% from the year-ago quarter, due to declining demand in yoghurt and snacks.
GIS Earnings & Outlook
Net income during the three months to August 26 was $392.3 million, or $0.65 per share, compared with $404.7 million, or $0.69 per share reported in the prior-year quarter. Excluding special items, the company earned $0.71 per share.
Net sales came in at $4.09 billion, which is an improvement from $3.77 billion that the company reported during the first-quarter of the previous year.
Analysts polled by Thompson Reuters were expecting adjusted earnings of $0.64 per share on net sales of $4.12 billion. General Mills did not make any changes on its full-year earnings outlook.
General Mills CEO Comments
“Fiscal 2019 is off to a good start. We drove organic net sales growth for the fourth consecutive quarter. The Blue Buffalo transition is progressing well, and we continue to expect double-digit top and bottom-line growth for that business this year, excluding acquisition-related charges. And we’re on track to deliver our financial commitments, with first-quarter adjusted operating profit and adjusted diluted EPS results ahead of our expectations. Based on these results and our outlook for the year, we are reaffirming our full-year fiscal 2019 targets,” said Jeff Harmening, General Mills chairman and chief executive officer.
General Mills, Inc. Company Profile
General Mills, Inc. engages in the manufacture and marketing of branded consumer foods sold through retail stores. It operates through the following segments: North America Retail; Convenience Stores & Foodservice; Europe & Australia; and Asia & Latin America; and Pet.
The North America Retail segment reflects business with a variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, and e-commerce grocery providers.
The Convenience Stores & Foodservice segment consists of ready-to-eat cereals, snacks, refrigerated yogurt, frozen meals, unbaked and fully baked frozen dough products, and baking mixes.
The Europe & Australia segment refers to the retail and foodservice businesses in the greater Europe and Australian region, which includes yogurt, meal kits, super-premium ice cream, refrigerated and frozen dough products, shelf stable vegetables, grain snacks, and dessert and baking mixes.
The Asia & Latin America segment encompasses the retail and foodservice businesses in the greater Asia and South America regions, which consist of premium ice cream and frozen desserts, refrigerated and frozen dough products, dessert and baking mixes, meal kits, salty and grain snacks, wellness beverages, and refrigerated yogurt.
The Pet segment represents the pet food products sold primarily in the United States in specialty channels, including national pet superstore chains, regional pet store chains, neighborhood pet stores, e-commerce retailers; military outlets; hardware stores; veterinary clinics, and grocery merchandisers.
The company was founded by Cadwallader C. Washburn in 1866 and is headquartered in Minneapolis, MN. – CNN Money
