General Mills Q1 Earnings Top Estimates

General Mills Inc GIS reported first-quarter FY22 net sales growth of 4% year-on-year, to $4.54 billion, beating the analyst consensus of $4.29 billion.
North America Retail segment sales declined 3% Y/Y. Pet segment sales increased 25%, while Convenience Stores & Foodservice segment sales rose 23%.
The gross margin contracted 120 basis points Y/Y to 35.2%.
The operating margin shrank 100 basis points to 18.6%, and operating income for the quarter fell 1% to $844 million.
General Mills held $710.6 million in cash and equivalents as of August 29, 2021. Net cash provided by operating activities totaled $369.8 million.
Adjusted EPS of $0.99 beat the analyst consensus of $0.89.
Outlook: General Mills sees FY22 organic new sales towards the higher end of initial guidance of down 3% - 1%.
The company sees constant-currency adjusted EPS toward the higher end of the initial guidance range of down 2% - flat.
Price Action: GIS shares are trading higher by 3.28% at $59.91 on the last check Wednesday.

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