- The adjusted EPS of General Mills in the third quarter surpassed estimates at $1.17 compared to the estimated $1.05 and last year’s 97 cents.
- The adjusted gross margin was 34%, slightly higher than the previous year’s 33.8% but slightly below the estimated 34.4%.
- Net sales of the company stood at $5.10 billion, a decrease of 0.5% compared to the previous year but higher than the estimated $4.99 billion.
- North America retail net sales were $3.24 billion, an increase of 0.3% from the previous year and higher than the estimated $3.14 billion.
- North America Foodservice net sales were $551.7 million, an increase of 0.7% from the previous year but slightly below the estimated $555.2 million.
- Pet segment net sales were $624.5 million, down by 3.3% from the previous year but surpassed the estimated $573 million.
- International net sales were $680.1 million, a decrease of 2.9% from the previous year and lower than the estimated $704.9 million.
- Organic net sales decreased by 1%, better than the estimated decrease of 3.26%.
- Pet organic net sales decreased by 3%, better than the estimated decrease of 10.9%.
- Change in North America Foodservice Organic Net Sales was an increase of 1%, slightly less than the estimated increase of 1.99%.
- Change in International Organic Net Sales was a decrease of 3%, much lower than the estimated increase of 1.63%.
- General Mills reaffirmed its full-year fiscal 2024 outlook.
- CEO Jeff Harmening attributed the improved volume and market share trends in the third quarter to the company’s strategic focus on brand building, innovation, and in-store execution.
- The company currently has 5 buys, 14 holds, and 3 sells.
General Mills on Smartkarma
General Mills, Inc. has been receiving a lot of attention from analysts on Smartkarma, an independent investment research network. According to research reports by Baptista Research, the sentiment towards the company is leaning bullish. In their report titled “Can The Acquisition Of Fera Pets Up Their Pet Supplements Game? – Major Drivers”, Baptista Research discusses General Mills‘ recent mixed results, with revenues falling short of expectations but earnings exceeding them. The report also highlights the company’s efforts to improve on-shelf availability, despite facing growth challenges.
In another report by Baptista Research, titled “The Unseen Forces Driving its Food Service Expansion! – Major Drivers”, General Mills‘ overall strong performance in the previous quarter is highlighted. The report mentions the company’s double-digit growth in non-measured channels, which has been driving their revenue growth ahead of their competitors. Additionally, General Mills‘ international business is also doing well, further contributing to the company’s success.
A look at General Mills Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
General Mills, Inc. has a promising long-term outlook according to the Smartkarma Smart Scores, with an overall score of 3 out of 5. This indicates a positive outlook for the company, as the higher the score, the better the company is performing in that factor. General Mills scored a 2 out of 5 in Value, 4 out of 5 in Dividend, 3 out of 5 in Growth, 2 out of 5 in Resilience, and 4 out of 5 in Momentum.
The company, which manufactures and markets branded and packaged consumer foods worldwide, also supplies food products to the foodservice and commercial baking industries. This diversified approach has helped General Mills score well in areas such as Dividend and Momentum, indicating a strong track record of consistent dividend payments and a positive stock performance. However, the company may need to focus on improving its Value and Resilience scores to ensure long-term sustainability and growth.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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