General Mills Reports Fiscal 2020 First-Quarter Results

 

MINNEAPOLIS–(BUSINESS WIRE)–General Mills (NYSE: GIS):

  • Operating profit increased 10 percent; constant-currency adjusted operating profit¹ increased 7 percent
  • Diluted earnings per share (EPS) totaled $0.85, up 31 percent from the prior year; adjusted diluted EPS of $0.79 increased 13 percent in constant currency
  • Net sales decreased 2 percent to $4.0 billion; organic net sales were down 1 percent
  • Company reaffirmed its full-year fiscal 2020 outlook

¹ Please see Note 6 to the Consolidated Financial Statements below for reconciliation of this and other non-GAAP measures used in this release.

General Mills (NYSE: GIS) today reported results for the first quarter ended August 25, 2019.

We are making clear progress in becoming a nimbler, more consumer-connected General Mills,” said General Mills Chairman and Chief Executive Officer Jeff Harmening. “Our first-quarter net sales performance included encouraging improvement in North America Retail and strong growth in Pet, driven by good innovation and effective brand-building investment. We got off to a slower start in our other segments, and we’re taking actions to drive topline improvement for those segments and the company starting in the second quarter.

On the bottom line, we delivered profit and earnings growth ahead of our expectations while continuing to invest in our brands and capabilities. We remain on track to deliver our fiscal 2020 goals, including accelerating our organic sales growth, maintaining our strong margins, and reducing our leverage.”

General Mills is pursuing its Consumer First strategy and executing against its global growth framework: 1) competing effectively through strong innovation, effective consumer marketing, and excellent in-store execution; 2) accelerating growth on its four differential growth platforms including Häagen-Dazs ice cream, snack bars, Old El Paso Mexican food, and its portfolio of natural and organic food brands; and 3) reshaping its portfolio through growth-enhancing acquisitions and divestitures, including the acquisition of Blue Buffalo, the leading brand in the fast-growing wholesome natural pet food category in the U.S. The company expects consistent topline growth generated by this growth framework, combined with margin expansion, disciplined cash conversion, and cash returns, will generate top-tier returns for General Mills shareholders over the long term.

First Quarter Results Summary

  • Net sales declined 2 percent to $4.0 billion. Organic net sales were down 1 percent, reflecting lower organic volume, partially offset by positive organic net price realization and mix across all operating segments.
  • Gross margin increased 190 basis points to 34.7 percent of net sales. Adjusted gross margin of 35.2 percent was 160 basis points above the prior year result that included a one-time purchase accounting inventory adjustment related to the Blue Buffalo acquisition.
  • Operating profit totaled $662 million, up 10 percent from last year. Operating profit margin of 16.5 percent increased 180 basis points. Constant-currency adjusted operating profit increased 7 percent, driven by the purchase accounting impact in the prior year. Adjusted operating profit margin increased 130 basis points to 17.0 percent.
  • Net earnings attributable to General Mills totaled $521 million, up 33 percent from a year ago, primarily reflecting higher operating profit, a lower effective tax rate, and lower net interest expense.
  • Diluted EPS of $0.85 increased 31 percent from the prior year. Adjusted diluted EPS totaled $0.79 in the first quarter, up 13 percent from the prior year in constant currency, driven primarily by higher adjusted operating profit, lower net interest expense, a lower adjusted effective tax rate, and higher non-service benefit plan income, partially offset by higher average diluted shares outstanding.

Operating Segment Results

Note: Tables may not foot due to rounding.

 Components of Fiscal 2020 Reported Net Sales Growth

First Quarter

 

Volume

 

Price/Mix

 

Foreign

Exchange

 

Reported

Net Sales

North America Retail

 

(1) pt

 

1 pt

 

 

Flat

Pet

 

1 pt

 

7 pts

 

 

7%

Convenience Stores & Foodservice

 

(6) pts

 

2 pts

 

 

(4)%

Europe & Australia

 

(7) pts

 

2 pts

 

(4) pts

 

(9)%

Asia & Latin America

 

(11) pts

 

3 pts

 

(2) pts

 

(10)%

Total

 

(4) pts

 

3 pts

 

(1) pt

 

(2)%

Components of Fiscal 2020 Organic Net Sales Growth

First Quarter

 

Organic

Volume

 

Organic

Price/Mix

 

Organic

Net Sales

 

Foreign
Exchange

 

Acquisitions &

Divestitures

 

Reported

Net Sales

North America Retail

 

(1) pt

 

1 pt

 

Flat

 

 

 

Flat

Pet

 

1 pt

 

7 pts

 

7%

 

 

 

7%

Convenience Stores & Foodservice

 

(6) pts

 

2 pts

 

(4)%

 

 

 

(4)%

Europe & Australia

 

(7) pts

 

2 pts

 

(5)%

 

(4) pts

 

 

(9)%

Asia & Latin America

 

(5) pts

 

1 pt

 

(3)%

 

(2) pts

 

(5) pts

 

(10)%

Total

 

(4) pts

 

3 pts

 

(1)%

 

(1) pt

 

 

(2)%

Fiscal 2020 Segment Operating Profit Growth

First Quarter

 

% Change as Reported

 

% Change in Constant Currency

North America Retail

 

2%

 

2%

Pet

 

NM

 

NM

Convenience Stores & Foodservice

 

(6)%

 

(6)%

Europe & Australia

 

(20)%

 

(15)%

Asia & Latin America

 

(17)%

 

(11)%

Total

 

9%

 

9%

North America Retail Segment

First-quarter net sales for General Mills’ North America Retail segment totaled $2.38 billion, essentially matching year-ago levels, with benefits from net price realization and mix offset by lower contributions from volume. The segment maintained momentum in the U.S. Cereal operating unit, where net sales were up 1 percent, while improving trends in U.S. Yogurt and U.S. Snacks, where net sales were flat and down 1 percent, respectively. Net sales in the U.S. Meals & Baking unit declined 1 percent, and constant-currency net sales in Canada were also down 1 percent. First-quarter retail sales were flat in U.S. Nielsen-measured outlets. Segment operating profit of $560 million increased 2 percent, driven by HMM cost savings and benefits from positive net price realization and mix, partially offset by input cost inflation and higher brand-building investments.

Pet Segment

First-quarter net sales for the Pet segment increased 7 percent to $368 million, driven by positive contributions from volume growth and positive net price realization and mix, partially offset by the comparison to an extra week of results in last year’s first quarter related to acquisition timing. Excluding the timing difference, net sales increased in the mid teens. Pet parent takeaway accelerated in the quarter, with all-channel retail sales up low double digits. Segment operating profit totaled $81 million compared to $14 million in the prior year, driven primarily by a $53 million one-time purchase accounting inventory adjustment in the year-ago period as well as higher net sales.

Convenience Stores & Foodservice Segment

First-quarter net sales for the Convenience Stores & Foodservice segment declined 4 percent to $445 million, driven by lower bakery flour volume and unfavorable index pricing, partially offset by low single-digit growth for the Focus 6 platforms including strong performance on cereal and frozen baked goods. Segment operating profit of $91 million was 6 percent below the year-ago result that grew 14 percent.

Europe & Australia Segment

First-quarter net sales for the Europe & Australia segment declined 9 percent to $454 million, driven by lower volume and unfavorable foreign currency exchange, partially offset by benefits from net price realization and mix. Organic net sales were down 5 percent, driven largely by a continued challenging retail environment in France for yogurt and ice cream, as well as differences in merchandising phasing. Segment operating profit totaled $28 million compared to $34 million a year ago. On a constant-currency basis, segment operating profit was down 15 percent, driven primarily by a timing difference in brand-building investment and lower volume, partially offset by benefits from net price realization and mix.

Asia & Latin America Segment

First-quarter net sales for the Asia & Latin America segment declined 10 percent to $360 million, driven by a 5-point headwind from divestitures executed in fiscal 2019, lower volume, and unfavorable foreign currency exchange, partially offset by benefits from net price realization and mix. Organic net sales were down 3 percent, driven by retailer inventory reductions in Brazil, distribution network changes in India, and lower volumes in China. First-quarter net sales results also compared against the strongest quarter of growth last year, when organic net sales were up 8 percent. Segment operating profit totaled $10 million compared to $12 million a year ago.

Joint Venture Summary

Combined after-tax earnings from joint ventures totaled $22 million compared to $18 million a year ago, driven primarily by our $5 million after-tax share of a restructuring charge at CPW in the year-ago period. First-quarter net sales increased 2 percent in constant currency for Cereal Partners Worldwide (CPW), driven by growth in the UK & Australia, Latin America, and Asia, Middle East, and Africa regions, partially offset by declines in the continental Europe region. Constant-currency net sales for Häagen-Dazs Japan (HDJ) increased 6 percent, driven largely by growth in core mini-cups.

Other Income Statement Items

Unallocated corporate items totaled $99 million net expense in the first quarter of fiscal 2020, compared to $106 million net expense a year ago. Excluding mark-to-market valuation effects and other items affecting comparability, unallocated corporate items totaled $88 million net expense this year compared to $65 million net expense last year.

Restructuring, impairment, and other exit costs totaled $8 million in the quarter compared to a $1 million net recovery a year ago. An additional $6 million of restructuring and project-related charges were recorded in cost of sales this year compared to $1 million a year ago.

Net interest expense totaled $119 million in the first quarter compared to $134 million a year ago, driven by lower average debt balances and rates. The effective tax rate in the quarter was 11.7 percent compared to 22.6 percent last year (please see Note 5 below for more information on our effective tax rate). The adjusted effective tax rate was 20.9 percent compared to 22.7 percent a year ago.

Cash Flow Generation and Cash Returns

Cash provided by operating activities totaled $572 million in the first quarter of fiscal 2020, down 6 percent from the prior year, primarily driven by changes in inventory and deferred income taxes, partially offset by higher net earnings. Capital investments totaled $70 million compared to $113 million a year ago. Dividends paid totaled $298 million. Average diluted shares outstanding for the first quarter increased 1 percent to 612 million.

Fiscal 2020 Outlook

General Mills reaffirmed its key full-year fiscal 2020 targets:

  • Organic net sales are expected to increase 1 to 2 percent. The combination of currency translation, the impact of divestitures executed in fiscal 2019, and contributions from the 53rd week in fiscal 2020 are now expected to increase reported net sales by approximately 1 percentage point.
  • Constant-currency adjusted operating profit is expected to increase 2 to 4 percent from the base of $2.86 billion reported in fiscal 2019.
  • Constant-currency adjusted diluted EPS are expected to increase 3 to 5 percent from the base of $3.22 earned in fiscal 2019.
  • The company expects free cash flow conversion of at least 95 percent of adjusted after-tax earnings.
  • Currency translation is expected to have an immaterial impact on fiscal 2020 adjusted operating profit and adjusted diluted EPS.

General Mills will hold a briefing for investors today, September 18, 2019, beginning at 7:30 a.m. Central time (8:30 a.m. Eastern time). You can access the webcast at www.generalmills.com/investors.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our current expectations and assumptions. These forward-looking statements, including the statements under the caption “Fiscal 2020 Outlook,” and statements made by Mr. Harmening, are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. In particular, our predictions about future net sales and earnings could be affected by a variety of factors, including: competitive dynamics in the consumer foods industry and the markets for our products, including new product introductions, advertising activities, pricing actions, and promotional activities of our competitors; economic conditions, including changes in inflation rates, interest rates, tax rates, or the availability of capital; product development and innovation; consumer acceptance of new products and product improvements; consumer reaction to pricing actions and changes in promotion levels; acquisitions or dispositions of businesses or assets, including our acquisition of Blue Buffalo and issues in the integration of Blue Buffalo and retention of key management and employees; unfavorable reaction to our acquisition of Blue Buffalo by customers, competitors, suppliers, and employees; changes in capital structure; changes in the legal and regulatory environment, including tax legislation, labeling and advertising regulations, and litigation; impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets, or changes in the useful lives of other intangible assets; changes in accounting standards and the impact of significant accounting estimates; product quality and safety issues, including recalls and product liability; changes in consumer demand for our products; effectiveness of advertising, marketing, and promotional programs; changes in consumer behavior, trends, and preferences, including weight loss trends; consumer perception of health-related issues, including obesity; consolidation in the retail environment; changes in purchasing and inventory levels of significant customers; fluctuations in the cost and availability of supply chain resources, including raw materials, packaging, and energy; disruptions or inefficiencies in the supply chain; effectiveness of restructuring and cost saving initiatives; volatility in the market value of derivatives used to manage price risk for certain commodities; benefit plan expenses due to changes in plan asset values and discount rates used to determine plan liabilities; failure or breach of our information technology systems; foreign economic conditions, including currency rate fluctuations; and political unrest in foreign markets and economic uncertainty due to terrorism or war. The company undertakes no obligation to publicly revise any forward-looking statement to reflect any future events or circumstances.

Consolidated Statements of Earnings and Supplementary Information

GENERAL MILLS, INC. AND SUBSIDIARIES

(Unaudited) (In Millions, Except per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

Aug. 25,

 

 

Aug. 26,

 

 

 

 

 

 

2019

 

 

2018

 

% Change

Net sales

 

$

4,002.5

 

$

4,094.0

 

(2.2)

%

Cost of sales

 

 

2,613.0

 

 

2,751.2

 

(5.0)

%

Selling, general, and administrative expenses

 

 

718.9

 

 

742.7

 

(3.2)

%

Restructuring, impairment, and other exit costs

(recoveries)

 

 

8.2

 

 

(1.4)

 

NM

 

Operating profit

 

 

662.4

 

 

601.5

 

10.1

%

Benefit plan non-service income

 

 

(30.2)

 

 

(20.9)

 

44.5

%

Interest, net

 

 

118.7

 

 

133.5

 

(11.1)

%

Earnings before income taxes and after-tax

earnings from joint ventures

 

 

573.9

 

 

488.9

 

17.4

%

Income taxes

 

 

67.2

 

 

110.7

 

(39.3)

%

After-tax earnings from joint ventures

 

 

21.8

 

 

17.7

 

23.2

%

Net earnings, including earnings attributable

to redeemable and noncontrolling interests

 

 

528.5

 

 

395.9

 

33.5

%

Net earnings attributable to redeemable

and noncontrolling interests

 

 

7.9

 

 

3.6

 

119.4

%

Net earnings attributable to General Mills

 

$

520.6

 

$

392.3

 

32.7

%

Earnings per share – basic

 

$

0.86

 

$

0.66

 

30.3

%

Earnings per share – diluted

 

$

0.85

 

$

0.65

 

30.8

%

Dividends per share

 

$

0.49

 

$

0.49

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

Aug. 25,

 

 

Aug. 26,

 

Basis Pt

 

Comparisons as a % of net sales:

 

 

2019

 

 

2018

 

Change

 

Gross margin

 

 

34.7 %

 

 

32.8 %

 

190

 

Selling, general, and administrative expenses

 

 

18.0 %

 

 

18.1 %

 

(10)

 

Operating profit

 

 

16.5 %

 

 

14.7 %

 

180

 

Net earnings attributable to General Mills

 

 

13.0 %

 

 

9.6 %

 

340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

Comparisons as a % of net sales excluding

 

 

Aug. 25,

 

 

Aug. 26,

 

Basis Pt

 

certain items affecting comparability (a):

 

 

2019

 

 

2018

 

Change

 

Adjusted gross margin

 

 

35.2 %

 

 

33.6 %

 

160

 

Adjusted operating profit

 

 

17.0 %

 

 

15.7 %

 

130

 

Adjusted net earnings attributable to General Mills

 

 

12.1 %

 

 

10.4 %

 

170

 

(a) See Note 6 for a reconciliation of these measures not defined by generally accepted accounting principles (GAAP).

See accompanying notes to consolidated financial statements.

Operating Segment Results and Supplementary Information

GENERAL MILLS, INC. AND SUBSIDIARIES

(Unaudited) (In Millions)

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

Aug. 25,

2019

 

 

Aug. 26,
2018

 

% Change

Net sales:

 

 

 

 

 

 

 

 

North America Retail

 

$

 

2,376.1

 

 

$

 

2,387.8

 

 

(0.5

)%

Europe & Australia

 

 

454.1

 

 

 

500.7

 

 

(9.3

)%

Convenience Stores & Foodservice

 

 

445.0

 

 

 

463.2

 

 

(3.9

)%

Pet

 

 

367.8

 

 

 

343.3

 

 

7.1

%

Asia & Latin America

 

 

359.5

 

 

 

399.0

 

 

(9.9

)%

Total

 

$

 

4,002.5

 

 

$

 

4,094.0

 

 

(2.2

)%

Operating profit:

 

 

 

 

 

 

 

 

North America Retail

 

$

 

559.9

 

 

$

 

548.1

 

 

2.2

%

Europe & Australia

 

 

27.6

 

 

 

34.5

 

 

(20.0

)%

Convenience Stores & Foodservice

 

 

91.1

 

 

 

97.1

 

 

(6.2

)%

Pet

 

 

80.9

 

 

 

14.5

 

 

NM

 

Asia & Latin America

 

 

10.1

 

 

 

12.2

 

 

(17.2

)%

Total segment operating profit

 

 

769.6

 

 

 

706.4

 

 

8.9

%

Unallocated corporate items

 

 

99.0

 

 

 

106.3

 

 

(6.9

)%

Restructuring and other exit costs (recoveries)

 

 

8.2

 

 

 

(1.4

)

 

NM

 

Total

 

$

 

662.4

 

 

$

 

601.5

 

 

10.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

Aug. 25,

2019

 

 

Aug. 26,

2018

 

Basis Pt

Change

Segment operating profit as a % of net sales:

 

 

 

 

 

 

 

 

North America Retail

 

 

23.6

%

 

 

23.0

%

 

60

 

Europe & Australia

 

 

6.1

%

 

 

6.9

%

 

(80

)

Convenience Stores & Foodservice

 

 

20.5

%

 

 

21.0

%

 

(50

)

Pet

 

 

22.0

%

 

 

4.2

%

 

NM

 

Asia & Latin America

 

 

2.8

%

 

 

3.1

%

 

(30

)

Total segment operating profit

 

 

19.2

%

 

 

17.2

%

 

200

 

 

 

 

 

 

 

 

 

 

See accompanying notes to consolidated financial statements.

Consolidated Balance Sheets

GENERAL MILLS, INC. AND SUBSIDIARIES

(In Millions, Except Par Value)

 

 

 

 

 

 

 

 

 

Aug. 25,

2019

 

Aug. 26,

2018

 

May 26,

2019

 

 

(Unaudited)

 

(Unaudited)

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

504.8

 

 

$

432.9

 

 

$

450.0

 

Receivables

 

 

1,710.5

 

 

 

1,709.1

 

 

 

1,679.7

 

Inventories

 

 

1,700.1

 

 

 

1,685.5

 

 

 

1,559.3

 

Prepaid expenses and other current assets

 

 

346.0

 

 

 

358.0

 

 

 

497.5

 

Total current assets

 

 

4,261.4

 

 

 

4,185.5

 

 

 

4,186.5

 

Land, buildings, and equipment

 

 

3,668.3

 

 

 

3,955.1

 

 

 

3,787.2

 

Goodwill

 

 

13,983.6

 

 

 

14,030.4

 

 

 

13,995.8

 

Other intangible assets

 

 

7,151.4

 

 

 

7,420.8

 

 

 

7,166.8

 

Other assets

 

 

1,248.5

 

 

 

963.0

 

 

 

974.9

 

Total assets

 

$

30,313.2

 

 

$

30,554.8

 

 

$

30,111.2

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

2,786.7

 

 

$

2,723.8

 

 

$

2,854.1

 

Current portion of long-term debt

 

 

1,391.8

 

 

 

1,599.2

 

 

 

1,396.5

 

Notes payable

 

 

1,296.1

 

 

 

1,349.4

 

 

 

1,468.7

 

Other current liabilities

 

 

1,428.8

 

 

 

1,515.4

 

 

 

1,367.8

 

Total current liabilities

 

 

6,903.4

 

 

 

7,187.8

 

 

 

7,087.1

 

Long-term debt

 

 

11,619.8

 

 

 

12,665.1

 

 

 

11,624.8

 

Deferred income taxes

 

 

1,991.7

 

 

 

2,028.7

 

 

 

2,031.0

 

Other liabilities

 

 

1,554.9

 

 

 

1,325.8

 

 

 

1,448.9

 

Total liabilities

 

 

22,069.8

 

 

 

23,207.4

 

 

 

22,191.8

 

Redeemable interest

 

 

547.8

 

 

 

771.6

 

 

 

551.7

 

Stockholders’ equity:

 

 

 

 

 

 

Common stock, 754.6 shares issued, $0.10 par value

 

 

75.5

 

 

 

75.5

 

 

 

75.5

 

Additional paid-in capital

 

 

1,370.9

 

 

 

1,160.9

 

 

 

1,386.7

 

Retained earnings

 

 

15,218.8

 

 

 

14,523.8

 

 

 

14,996.7

 

Common stock in treasury, at cost, shares of 150.5, 158.5 and 152.7

 

 

(6,681.8

)

 

 

(7,035.9

)

 

 

(6,779.0

)

Accumulated other comprehensive loss

 

 

(2,600.6

)

 

 

(2,499.2

)

 

 

(2,625.4

)

Total stockholders’ equity

 

 

7,382.8

 

 

 

6,225.1

 

 

 

7,054.5

 

Noncontrolling interests

 

 

312.8

 

 

 

350.7

 

 

 

313.2

 

Total equity

 

 

7,695.6

 

 

 

6,575.8

 

 

 

7,367.7

 

Total liabilities and equity

 

$

30,313.2

 

 

$

30,554.8

 

 

$

30,111.2

 

 

 

 

 

 

 

 

See accompanying notes to consolidated financial statements.

Consolidated Statements of Cash Flows

GENERAL MILLS, INC. AND SUBSIDIARIES

(Unaudited) (In Millions)

 

 

Quarter Ended

 

 

Aug. 25,

2019

 

Aug. 26,

2018

Cash Flows – Operating Activities

 

 

 

 

Net earnings, including earnings attributable to redeemable

and noncontrolling interests

 

$

528.5

 

 

$

395.9

 

Adjustments to reconcile net earnings to net cash

provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

154.1

 

 

 

155.2

 

After-tax earnings from joint ventures

 

 

(21.8

)

 

 

(17.7

)

Distributions of earnings from joint ventures

 

 

20.7

 

 

 

29.2

 

Stock-based compensation

 

 

28.8

 

 

 

26.1

 

Deferred income taxes

 

 

(37.2

)

 

 

28.9

 

Pension and other postretirement benefit plan contributions

 

 

(6.9

)

 

 

(7.4

)

Pension and other postretirement benefit plan costs

 

 

(7.8

)

 

 

1.5

 

Restructuring, impairment, and other exit costs

 

 

4.9

 

 

 

(18.9

)

Changes in current assets and liabilities

 

 

(84.6

)

 

 

14.8

 

Other, net

 

 

(6.6

)

 

 

(0.2

)

Net cash provided by operating activities

 

 

572.1

 

 

 

607.4

 

Cash Flows – Investing Activities

 

 

 

 

Purchases of land, buildings, and equipment

 

 

(69.8

)

 

 

(112.7

)

Investments in affiliates, net

 

 

(12.5

)

 

 

0.1

 

Proceeds from disposal of land, buildings, and equipment

 

 

0.3

 

 

 

0.1

 

Other, net

 

 

(1.7

)

 

 

(27.1

)

Net cash used by investing activities

 

 

(83.7

)

 

 

(139.6

)

Cash Flows – Financing Activities

 

 

 

 

Change in notes payable

 

 

(170.0

)

 

 

(189.8

)

Payment of long-term debt

 

 

(0.1

)

 

 

(0.2

)

Proceeds from common stock issued on exercised options

 

 

55.8

 

 

 

73.4

 

Purchases of common stock for treasury

 

 

 

 

 

(0.2

)

Dividends paid

 

 

(298.5

)

 

 

(294.2

)

Distributions to noncontrolling and redeemable interest holders

 

 

(2.5

)

 

 

(2.4

)

Other, net

 

 

(13.3

)

 

 

(9.6

)

Net cash used by financing activities

 

 

(428.6

)

 

 

(423.0

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(5.0

)

 

 

(10.9

)

Increase in cash and cash equivalents

 

 

54.8

 

 

 

33.9

 

Cash and cash equivalents – beginning of year

 

 

450.0

 

 

 

399.0

 

Cash and cash equivalents – end of period

 

$

504.8

 

 

$

432.9

 

Cash Flow from changes in current assets and liabilities:

 

 

 

 

Receivables

 

$

(37.4

)

 

$

(48.7

)

Inventories

 

 

(145.3

)

 

 

(58.2

)

Prepaid expenses and other current assets

 

 

148.0

 

 

 

35.4

 

Accounts payable

 

 

(35.8

)

 

 

17.7

 

Other current liabilities

 

 

(14.1

)

 

 

68.6

 

Changes in current assets and liabilities

 

$

(84.6

)

 

$

14.8

 

See accompanying notes to consolidated financial statements.

GENERAL MILLS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(1) The accompanying Consolidated Financial Statements of General Mills, Inc. (we, us, our, General Mills, or the Company) have been prepared in accordance with accounting principles generally accepted in the United States for annual and interim financial information. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal recurring nature.

In the first quarter of fiscal 2020, we adopted new accounting requirements for hedge accounting. The new standard amends the hedge accounting recognition and presentation requirements to better align an entity’s risk management activities and financial reporting.

Contacts

(analysts) Jeff Siemon: 763-764-2301

(media) Kelsey Roemhildt: 763-764-6364

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