Earnings Review - General Mills

LONDON, September 22, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings review on General Mills Inc. (NYSE: GIS). The company reported its financial results for Q1 FY15 on September 17, 2014. During Q1 FY15, General Mills Inc.'s diluted EPS fell by $0.15 from the previous year, and its net sales declined 2% Y-o-Y. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

During Q1 FY15, General Mills Inc.'s net sales decreased to $4,268.4 million, from $4,372.7 million, in Q1 FY14. On a constant-currency basis, net sales declined 1% Y-o-Y. The company's reported quarter's net sales trailed Bloomberg analysts' forecasts of $4,383 million. Net sales for General Mills' US Retail segment declined 5.4% Y-o-Y to $2444.3 million, in Q1 FY15. However, the company's consolidated international businesses increased 2.3% Y-o-Y to $1351.1 million, and Convenience Stores and Foodservice segment net sales grew 1.1% Y-o-Y to $473.0 million. The free research on GIS can be downloaded as in PDF format at:

www.Investor-Edge.com/GISFreeReport

General Mills Inc.'s Q1 FY15 Segment operating profit fell by 14.9% to $690.5 million, from $811.6 million, in Q1 FY14. During Q1 FY15, net earnings attributable to General Mills declined to $345.2 million or $0.55 per diluted share, from $459.3 million or $0.70 per diluted share in the preceding year quarter. Analysts from Bloomberg were expecting the company to report net income of $426.0 million or $0.69 per diluted share in the reported period. Excluding certain items, the company's adjusted diluted EPS during the quarter declined by 13% Y-o-Y to $0.61, from $0.70 in Q1 FY14.

Ken Powell, Chairman and CEO of General Mills, stated that the company in its 2015 plans had anticipated the first-quarter EPS to be below year-ago levels. While the company's results were driven by sales and profit declines in the US, where industry trends were weak in the quarter, the higher merchandising expense for the company's US Retail businesses in this period further depressed reported net sales and gross margin, he explained. Sign up and read the free analyst's notes on GIS at:

www.Investor-Edge.com/GIS-22092014

Mr. Powell however stated that the company has made some important progress in Q1 FY15, such as in US Retail, General Mills' Yoplait yogurt business returned to growth, with volume, sales, and market share gains. In addition, several other key product lines including Big G cereals, grain bars, and fruit snacks achieved market share increases. Also, General Mills Inc.'s Convenience Stores and Foodservice segment generated sales growth and an 18% operating profit increase, and its International business segment posted 17% constant-currency profit growth with good constant-currency sales gains, notably in Latin America and Europe, he added.

Commenting on the company's outlook for FY15, Mr. Powell stated that the company's number one objective continues to be accelerating its top-line growth. At the same time, the company will work towards reducing costs, streamlining operations and improving efficiency across its worldwide business. General Mills' CEO informed that the company has got strong plans for both of these efforts.

General Mills reiterated its full-year growth targets for 2015, and expects net sales to grow at a mid-single-digit rate in constant currency, including contribution of a 53rd week in FY15. Segment operating profit is also projected to grow at a mid-single-digit rate in constant currency.  Further, the company anticipates its adjusted diluted EPS to grow at a high single-digit rate in constant currency.  Visit Investor-Edge and access the latest research on GIS at:

www.Investor-Edge.com/GISEarningsCoverage

Stock Performance 

On the day of earnings release, September 17, 2014, shares in General Mills Inc. took a beating of 4.42%, and ended the session at $50.83. However, the stock has moved slightly higher since then, and on the last close, Friday, September 19, 2014, it ended the session at $51.28, up 0.12% over its previous day's close. The stock vacillated between $51.09 and $51.45 during the last session. A total of 4.14 million shares were traded, which was above its three months average volume of 2.97 million shares. Over the previous three trading sessions and in the last one month, the company's shares have fallen by 3.57% and 3.65%, respectively. However, they continue to be up 2.74% from the beginning of 2014. General Mills Inc.'s shares are trading below their 50-day and 200-day moving averages of $52.63 and $51.67, respectively. Further, the stock traded at a PE ratio of 19.46 and has a Relative Strength Index (RSI) of 35.47.

Sneak Peek to Corporate Insider Trading  

In the last one month, General Mills Inc. has reported six trading transactions by five insiders. On August 20, 2014, Raymond V. Gilmartin, Lead Independent Director at General Mills Inc., purchased 20,000 shares of the company, worth $450,000, at a price of $22.50 per share, while on the same day he sold 8,424 shares at a price of $53.42 per share for $450,010. On August 24, 2014, four other Independent Directors of the company, Bradbury H. Anderson, Dr. Hilda M. Ochoa-Brillembourg, Stephen A. Odland, and Michael D. Rose, purchased a total of 1,471 shares of General Mills Inc., worth $78,580.80, at an average price of $53.42 per share. Complimentary in-depth research on GIS is available at:

www.Investor-Edge.com/GISInsiderTrading

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