General Mills Inc. (NYSE: GIS) reported improved sales results for its second quarter, ended Nov. 28, 2021.
“We continued to compete effectively and execute well this quarter in a challenging operating environment,” said General Mills chairman and chief executive Jeff Harmening. “In the face of an unprecedented combination of input cost inflation and supply chain disruptions, we’re moving quickly to keep our trusted brands on store shelves for consumers while driving net price realization to protect our bottom line."
Key points
- Net sales increased 6% to $5 billion; organic net sales were up 5%.
- Operating profit declined 13% to $800 million; constant-currency adjusted operating profit was down 6%, reflecting significant input cost inflation and elevated costs related to supply chain disruptions.
- Diluted earnings per share totaled $0.97, down 13% from the prior year; adjusted diluted EPS of $0.99 was down 7% in constant currency.
- Company updates full-year fiscal 2022 outlook to reflect stronger net sales growth, higher costs, and the impact of the European Yoplait divestiture.
General Mills expects changes in consumer behaviors driven by the COVID-19 pandemic will result in ongoing elevated consumer demand for food at home, relative to pre-pandemic levels. These changes include more time spent working from home and increased consumer appreciation for cooking and baking.
