General Mills (GIS) Issues Mixed Q4 Results, Light Outlook; Yoplait Drives Int'l Sales
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Price: $48.59 -0.9%
Revenue Growth %: +7.5%
Financial Fact:
Income taxes: 174.2M
Today's EPS Names:
BOSC, GASS, AAP, More
Revenue Growth %: +7.5%
Financial Fact:
Income taxes: 174.2M
Today's EPS Names:
BOSC, GASS, AAP, More
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General Mills (NYSE: GIS) shares could use a few "Kix" Wednesday morning following the company's fourth-quarter 2012 results. Shares are flat ahead of the bell.
Pulling no "Trix," General Mills said quarterly net sales rose 12 percent to $4.07 billion, slightly lighter than Street expectations of $4.11 billion.
Net earnings rose 1.6 percent to $325.4 million, or 49 cents per share, versus consensus views of 59 cents per share.
U.S. sales rose 3 percent and volume lag was offset by 10 points of sales growth attributed to price realization and mix. International sales rose 46 percent with volume up 75 points due to the Yoplait acquisition. Negatives for International segment were price realization and mix as well as unfavorable currency exchange.
"Fiscal 2012 was characterized by the highest input-cost inflation we’ve experienced in more than three decades, and this cost pressure constrained our earnings growth," said CEO Ken Powell. "In addition, slow economic recovery kept many consumer budgets under pressure. In this environment, we took strategic actions that increased our worldwide sales base and strengthened our portfolio."
Looking ahead, General Mills sees fiscal 2013 sales up in the mid-single-digit range with adjusted EPS of $2.65. The EPS estimate includes about 2-3 cents of drag from partial-year results for Yoki. The Street is expecting EPS of $2.75.
General Mills plans to: 1. make more investments in marketing and merchandising investments for U.S. yogurt and select other product lines; 2. support its Canadian Yoplait yogurt business, which will be assumed from the current licensee on September 1, 2012; and 3. invest in emerging markets, particularly China, in order to accelerate business growth.
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Pulling no "Trix," General Mills said quarterly net sales rose 12 percent to $4.07 billion, slightly lighter than Street expectations of $4.11 billion.
Net earnings rose 1.6 percent to $325.4 million, or 49 cents per share, versus consensus views of 59 cents per share.
U.S. sales rose 3 percent and volume lag was offset by 10 points of sales growth attributed to price realization and mix. International sales rose 46 percent with volume up 75 points due to the Yoplait acquisition. Negatives for International segment were price realization and mix as well as unfavorable currency exchange.
"Fiscal 2012 was characterized by the highest input-cost inflation we’ve experienced in more than three decades, and this cost pressure constrained our earnings growth," said CEO Ken Powell. "In addition, slow economic recovery kept many consumer budgets under pressure. In this environment, we took strategic actions that increased our worldwide sales base and strengthened our portfolio."
Looking ahead, General Mills sees fiscal 2013 sales up in the mid-single-digit range with adjusted EPS of $2.65. The EPS estimate includes about 2-3 cents of drag from partial-year results for Yoki. The Street is expecting EPS of $2.75.
General Mills plans to: 1. make more investments in marketing and merchandising investments for U.S. yogurt and select other product lines; 2. support its Canadian Yoplait yogurt business, which will be assumed from the current licensee on September 1, 2012; and 3. invest in emerging markets, particularly China, in order to accelerate business growth.
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