Dive Brief:
- Like many other companies, General Mills' third-quarter 2015 earnings were affected by currency fluctuations. Several figures came to be losses when with constant-currency considerations, they were actually modest gains.
- This included net sales for the 13 weeks ended Feb. 22, which were $4.35 billion, a loss for the sixth quarter in a row. This was a decrease of 1% from last year's third quarter with currency fluctuation mixed in, but it was a 3% increase in terms of constant currency.
- Excluding restructuring-related charges and other items, the company's earnings beat Wall Street estimates of $0.67 per share with reported adjusted diluted earnings per share of $0.70, according to CNBC. This was a 13% increase over $0.62 per share from last year's third quarter, as reported by a press release.
Dive Insight:
In a press release, General Mills chairman and CEO Ken Powell attributed some of the U.S. retail segment growth to the company's acquisition of Annie's in October. According to The Wall Street Journal, "Overall, higher prices, growth from its Annie’s acquisition and product mix offset lower sales volume."
General Mills has been in the headlines recently for a rumored shedding of Green Giant and cost-cutting measures, as well as the future closure of a Pillsbury plant. Back in October, the company announced it would shed 700 to 800 jobs. Certainly, General Mills seeing sluggish cereal sales isn't helping its bottom line, so the company has had to find ways to increase profits, which The Wall Street Journal reports dropped 16% in the third quarter.
Below are some tweets from the company regarding Q3 results:
Powell: Retail sales for Original Yoplait in the U.S. up 17% in Q3 #GISQ3F15
— General Mills (@GeneralMills) March 18, 2015
Powell: Even without Annie's, net U.S. sales of our natural/organic brands increased at a double-digit rate in Q3 #GISQ3F15
— General Mills (@GeneralMills) March 18, 2015
Powell: We're renovating established brands to meet consumer needs, creating new products & investing in strong consumer marketing #GISQ3F15
— General Mills (@GeneralMills) March 18, 2015