General Mills Partners with USDA in Habitat Initiative

Price movement

General Mills (GIS) has a market cap of $36.0 billion. It fell 2.7% to close at $60.94 per share on November 30, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -2.8%, -1.7%, and 8.8%, respectively, on the same day.

GIS is trading 1.3% below its 20-day moving average, 1.9% below its 50-day moving average, and 4.8% below its 200-day moving average.

General Mills Partners with USDA in Habitat Initiative

Related ETF and peers

The Fidelity MSCI Consumer Staples ETF (FSTA) invests 1.9% of its holdings in General Mills. The YTD price movement of FSTA was 1.7% on November 30.

The market caps of General Mills’s competitors are as follows:

  • Kellogg (K) — $25.3 billion
  • Hershey (HSY) — $20.5 billion
  • Post Holdings (POST) — $5.0 billion

Latest news on General Mills

In a press release on November 30, 2016, General Mills announced, “General Mills, the Xerces Society, and the U.S. Department of Agriculture announce a major milestone in their partnership to restore and protect pollinator habitat across hundreds of thousands of acres of farmland in North America.

“The five-year, $4 million financial commitment between General Mills and USDA’s Natural Resources Conservation Service…will support farmers across the U.S. by providing technical assistance to plant and protect pollinator habitat, such as native wildflower field edges and flowering hedgerows.”

The report continued, “Through 2021, this partnership will help to plant over 100,000 acres of pollinator habitat. Providing habitat in agriculture landscapes has been shown to help a variety of pollinators, including bumble bees, squash bees, honey bees and butterflies, and provides benefits to crops that need insect pollinators. Such habitat can also improve water quality, reduce soil erosion and provide habitat for game and songbirds.”

Performance of General Mills in fiscal 1Q17

General Mills (GIS) reported fiscal 1Q17 net sales of $3.9 billion, a fall of 7.1% from its net sales of $4.2 billion in fiscal 1Q16. Sales of the US 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.

The company’s 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

General Mills (GIS) 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%–8% on a constant currency basis
  • adjusted operating profit margin to expand by ~1.5%.
  • adjusted EPS growth in the range of 6%–8% on a constant currency basis

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