General Mills beats estimates in FQ4

General Mills (NYSE:GIS) reports organic net sales growth of 16% in FQ4 vs. consensus of +16.9%, primarily reflecting a significant increase in at-home food demand driven by the COVID-19 pandemic.
Segment sales: North America Retail sales +36% to $3.2B; Pet sales +37% to $555M; Convenience Stores and Foodservice sales -24% to $393M; Europe & Australia sales +6% to $530M; Asia and Latin America sales -12% to $349M.
Adjusted gross margin rate improved 80 bps to 36.1%, primarily driven by Holistic Margin Management cost savings and favorable manufacturing leverage.
Adjusted operating margin rate up 40 bps to 17.7%.
“As we turn to FY2021, we’ll maintain a sharp focus on the near-term opportunity to meet continued elevated demand while continuing to advance our long-term strategies by investing to build our brands, strengthen our innovation, and enhance our strategic capabilities. I remain confident that General Mills will emerge from the pandemic a stronger company," commented Chairman and CEO Jeff Harmening.
The company expects to make further progress in FY2021 in reducing its net-debt-to-adjusted-EBITDA ratio, which stood at 3.2x at the end of FY2020.
GIS -1.96% premarket.
Previously: General Mills EPS beats by $0.04, beats on revenue (July 1)