General Mills Appoints Alicia Boler Davis to Board of Directors

Price movement

General Mills (GIS) has a market cap of $36.7 billion. It rose 2.0% to close at $61.83 per share on November 7, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -0.24%, -0.48%, and 10.4%, respectively, on the same day. GIS is trading 0.58% above its 20-day moving average, 3.3% below its 50-day moving average, and 2.5% below its 200-day moving average.

General Mills Appoints Alicia Boler Davis to Board of Directors

Related ETF and peers

The Fidelity MSCI Consumer Staples ETF (FSTA) invests 1.9% of its holdings in General Mills. The ETF tracks a market-cap-weighted index of stocks in the US consumer staples sector. The YTD price movement of FSTA was 5.1% on November 7. The market caps of General Mills’ competitors are as follows:

  • Kellogg (K) — $26.7 billion
  • Hershey (HSY) — $21.8 billion
  • Post Holdings (POST) — $5.0 billion

Latest news on General Mills

Alicia S. Boler Davis has been appointed to General Mills’ board of directors. The company reported that “Boler Davis currently serves as executive vice president, Global Manufacturing at General Motors, where she leads approximately 180,000 employees in more than 30 countries.  She is a member of the GM Executive Leadership Team, the Opel Supervisory Board and the GM Korea Board of Directors.”

Performance of General Mills in fiscal 1Q17

General Mills reported fiscal 1Q17 net sales of $3.9 billion, a fall of 7.1% from the net sales of $4.2 billion in fiscal 1Q16. Sales of the U.S. Retail, International, and Convenience Stores & Foodservice segments fell 7.9%, 5.8%, and 6.6%, respectively, between fiscal 1Q16 and fiscal 1Q17. The company’s gross profit margin and operating profit margin narrowed 1.6% and 5.5%, respectively.

Its net income and EPS (earnings per share) fell to $409.0 million and $0.67, respectively, in fiscal 1Q17, compared with $426.6 million and $0.69 in fiscal 1Q16. It reported adjusted EPS of $0.78 in fiscal 1Q17, a fall of 1.3% from fiscal 1Q16.

GIS’s cash and cash equivalents and inventories rose 0.26% and 9.5%, respectively, between fiscal 4Q16 and fiscal 1Q17. Its current ratio and debt-to-equity ratio rose to 0.80x and 3.0x, respectively, in fiscal 1Q17, compared with 0.79x and 2.9x in fiscal 4Q16.

Projections

The company has made the following projections for fiscal 2017:

  • organic net sales growth of 0% to -2%
  • total segment operating profit growth in the range of 6% to 8% on a constant-currency basis
  • adjusted operating profit margin to expand by ~1.5%.
  • adjusted EPS growth in the range of 6% to 8% on a constant-currency basis

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