General Mills, Inc.(NYSE:GIS) stock rose over 1.3% on December 20th, 2017 (as of 1:13PM EST; Source: Google finance) leading to the total rise of over 7.6% in the last four weeks.
The group’s Net sales enhanced 2% to $4.2 billion while organic net sales rose 1% during the second quarter of 2018. On the other hand, the Gross margin was under pressure which fell 260 basis points to 34.4 percent of net sales hurt by rising input costs including currency-driven inflation on imported products, as well as unfavorable trade expense phasing. As a result, the group’s Operating profit fell 5% yoy to $730 million, while Operating profit margin also fell 130 basis points. Accordingly, Diluted earnings per share (EPS) lost 8% to $0.74; while adjusted diluted EPS fell 5% to $0.82. First-half operating cash flow surged 45% to $1.6 billion while free cash flow enhanced 72 percent to $1.3 billion.
As per the regional performance, the group’s North America Retail segment net sales reached $2.77 billion, which is a rise of 1% on a yoy basis boosted by a 7% rise for the U.S. Cereal operating unit and a 5 % increase for U.S. Snacks. The Canada unit delivered a 1 percent net sales growth in constant currency.
But the region’s Net sales for the U.S. Meals & Baking operating unit lost 2% while U.S. Yogurt net sales lost 11 percent. U.S. Snacks net sales growth was driven by Lärabar and Nature Valley snack bars and fruit snacks offsetting declines on Fiber One snack bars.
The group’s Convenience Stores & Foodservice Segment’s Second-quarter net sales for the Convenience Stores & Foodservice segment surged 5% to $512 million, boosted by a Focus 6 platforms, including frozen meals, cereal, and snacks, as well as benefits from market index pricing on bakery flour. As a result, the Organic net sales enhanced 5%. With regards to the Europe & Australia Segment Second-quarter net sales surged 7% yoy to $467 million, boosted by favorable foreign currency exchange and contributions from volume. Factors like Innovation, brand-building, and geographic expansion continued to drive sales and share growth for Häagen-Dazs ice cream and Nature Valley and Fiber One snacks