{"id":131398,"date":"2021-07-07T10:27:22","date_gmt":"2021-07-07T10:27:22","guid":{"rendered":"https:\/\/precoinnews.com\/?p=131398"},"modified":"2021-07-07T10:27:22","modified_gmt":"2021-07-07T10:27:22","slug":"general-mills-q4-profit-declines-but-results-top-estimates","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/general-mills-q4-profit-declines-but-results-top-estimates\/","title":{"rendered":"General Mills Q4 Profit Declines, But Results Top Estimates"},"content":{"rendered":"
Branded food company General Mills, Inc. (GIS) announced Wednesday that profit for the fourth quarter declined 33 percent from last year, hurt by lower gross margins, higher restructuring charges and a loss on the sale of the Latic\u00ednios Carolina yogurt business<\/span> in Brazil.<\/p>\n However, adjusted earnings per share and quarterly net sales topped analysts’ estimates. The company also initiated adjusted earnings and organic net sales growth guidance for the full-year 2022.<\/p>\n For the fourth quarter, net earnings attributable to General Mills declined to $416.8 million or $0.68 per share from $625.7 million or $1.02 per share in the prior-year quarter.<\/p>\n Excluding items, adjusted earnings for the quarter were $0.91 per share, compared to $1.10 per share in the year-ago quarter.<\/p>\n On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.84 per share for the quarter. Analysts’ estimates typically exclude special items.<\/p>\n Net sales for the quarter declined 10 percent to $4.52 billion and organic net sales were down 6 percent, reflecting the comparison against the surge in at-home food demand at the outset of the pandemic in the prior year. Analysts expected revenues of $4.36 billion for the quarter.<\/p>\n Net sales for the North America Retail segment were down 17 percent to $2.64 billion, net sales for the Pet segment were down 20 percent to $444 million and net sales for the Convenience Stores & Foodservice segment increased 25 percent to $493 million from last year.<\/p>\n Net sales for the Europe & Australia segment increased 2 percent to $539 million and net sales for the Asia & Latin America segment increased 17 percent to $407 million from last year.<\/p>\n Gross margin was down 20 basis points to 35.0 percent of net sales, driven by higher input costs.<\/p>\n Looking ahead to fiscal 2022, the company projects constant-currency adjusted earnings per share to range between flat and down 2 percent from the base of $3.79 per share reported in fiscal 2021. Organic net sales are expected to decline 1 to 3 percent, reflecting the outlook for lower consumer demand.<\/p>\n The Street is currently looking for earnings of $3.70 per share on revenues of $17.66 billion for the full-year 2022.<\/p>\n Further, the company said it expects at-home food demand to decline year over year in fiscal 2022 across most of its core markets<\/span>, though it will remain above pre-pandemic levels. However, away-from-home food demand is expected to continue to recover in fiscal 2022, though not fully to pre-pandemic levels. <\/p>\n