Credit: Shutterstock photoGeneral Mills Inc. ( GIS ), the U.S. international producer and marketer of branded conumer foods that are sold through retail stores, released the financial results for the second quarter of fiscal 2018.
General Mills closed the quarter reporting adjusted EPS of 82 cents. This figure represented a 3.5% decline year over year and was in line with expectations.
Earnings for the second quarter of fiscal 2018 are backed by revenue of $4.2 billion, a 2.2% increase from the comparable quarter of fiscal 2017. General Mills beat expectations on sales by $110 million. The company reported growth in sales from all its segments.
Organic sales increased as well, by 1%.
The company reported an operating profit for the total segment of $773 million, a 7% decline from the same item of one year ago, and shared among the company's segments as follows: North America Retail with 80% or $662.9 million (-4.3% year over year); Convenience Stores & Foodservice with 17% or $106.5 million (-2.4% year over year); Europe & Australia with 3.5% or $26.9 million (-35% year over year); Asia & Latin America with 2% or $16.7 million (-42.4% year overyear).
The adjusted gross margin was 34.4% on sales, a 240 basis points decrease from the comparable of fiscal 2017, while the adjusted operating profit margin came in at 17.4%, a 220 basis points decline from one year ago. The decline in the gross margin was due to higher input costs and unfavorable trade expenses.
The effective tax rate during the quarter was 35.9% versus a tax rate of 32.8% a year ago.
For full fiscal 2018, the company said that "organic net sales are now expected to range between flat and down 1%, compared to the previous range of a decline of 1-2%."
General Mills is trading at $57.45, down 0.2% from the previous trading day, with a market capitalization of $32.47 billion, a price-earnings (P/E) ratio of 20.5, a price-book ratio (P/B) ratio of 8.32 and a price-sales (P/S) ratio of 2.10. The 52-week range is between $49.65 and $63.73.
The forward P/E ratio is 17.74.
Discloure: I have no positions in General Mills Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
