General Mills, Inc.
CEO : Mr. Jeffrey L. Harmening
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2023 Q3 | 13.0% YoY | -10.4% | -98.3% | 2023-03-23 |
Jeff Harmening says,
Third Quarter Sales
- Sales were roughly in line with expectations at 15%.
- Inventory was rebuilt in the third quarter as much as it was lost in the second quarter.
- Inventory and sales out are about the same for the year, with no significant retail inventory build in the third quarter.
Retail Movement
- Dry dog food business performed quite well, with Life Protection Formula up 23% in dollar terms and 9% in pounds.
- Comparisons show more dog and pet food sold in Q3 than in Q2 in terms of pounds and RNS.
Supply Chain and Customer Satisfaction
- Supply chain improved quickly in the third quarter with service levels reaching 90% or higher.
- Rebuilding inventory was possible due to the improved supply chain, and customers were glad to see retail business back in action.
Future Outlook
- Expectations remain for double-digit growth in the back half of the year.
- While there is more work to be done, the third quarter was a good one for the pet business.
- Fourth quarter results are yet to be seen.
Jon Nudi says,
Strategic Revenue Management
- Capabilities in Strategic Revenue Management have been built for 5-6 years, leveraging the entire toolbox.
- List price increases have been taken due to inflation in the past year.
- Focus has been given to promotional optimization.
- Price points were up double digits across categories.
- Sophistication in pricing has increased over the past few years.
Market Changes
- Frequency is coming back from a trade standpoint as services get healthier.
- Price architecture and mix are also being looked at.
- Elasticities have been positively impacted by these moves in the market.
Recessionary Periods
- Private label does well during recessionary periods.
- Historically, the company has held up pretty well during such times.
- Share remains relatively flat with third and fourth tier players in categories getting hit the hardest.
Q & A sessions,
Pet Business
- Category dynamics trending towards humanization with no trade down to private label or lower-priced brands.
- Mobility increase due to people going back to the office resulting in a little bit less treating and more dry dog food.
- Pounds down 2% and trailing categories but improving with services levels and marketing efforts.
Food Service
- Removed convenience stores from food service business and expanded to North America.
- Strong K-12 school business and gaining share in many categories in North America food service.
- Early innings on driving back margin growth into our food service business.
Sales Performance
- Little change in elasticities and consumption of food at home remains stable.
- Double digit marketing spending in the past 4 years resulting in strong brand growth.
No bad stock 