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General Mills (GIS) Offers Update on Key Enterprise Priorities
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General Mills, Inc. (GIS - Free Report) offered an update regarding its progress in three key priorities as part of its participation at the 2023 Barclays Global Consumer Staples Conference. Alongside, GIS reaffirmed its guidance for fiscal 2024.
Amid an evolving landscape, including moderating inflation, an improved supply chain and cautious consumers, the company remains focused on its core priorities in fiscal 2024. These include competing efficiently, enhancing supply-chain efficacy and undertaking disciplined capital allocation.
Fiscal 2024 Targets Reiterated
Despite a dynamic environment, General Mills remains committed to fiscal 2024 targets. For fiscal 2024, organic net sales are anticipated to increase 3-4%. Management earlier stated that robust marketing, innovation and in-store support are likely to drive organic sales. Also, gains from net price realization through the company’s Strategic Revenue Management initiative are likely to aid.
Adjusted operating profit growth at constant currency or cc is anticipated at 4-6%. Adjusted EPS growth at cc is also envisioned between 4% and 6%. Management expects the free cash flow conversion to be at least 95 percent of adjusted after-tax earnings in the fiscal.
Core Priorities Underway
General Mills is focused on competing efficiently. In the North America Retail segment, retail sales of at-home food categories continued to be higher than pre-pandemic levels in the first quarter of fiscal 2024.
Retail sales trends in the U.S. pet food category have been moderating of late, partly due to the reduced impact of pricing. Also, increased cautiousness about the economic outlook has shifted pet parents to more value-oriented products and channels, along with smaller pack sizes. Pet segment volumes are likely to remain under pressure in the months ahead. Consequently, management now anticipates first-quarter fiscal 2024 organic net sales to be roughly flat year over year in the Pet segment.
In the North America Foodservice segment, consumer traffic has been increasing modestly in recent months in away-from-home food channels. Segment net sales are likely to increase year over year in the first quarter.
In the International segment, General Mills is focused on sustaining the robust momentum. Enhanced service levels and innovation are likely to result in significant organic net sales growth in the first quarter of fiscal 2024.
Moving on, recently, the supply-chain landscape has consistently improved. Management is on track to boost its Holistic Margin Management cost savings to 4% of the cost of goods sold in fiscal 2024, up from 3% witnessed in fiscal 2023. GIS is focused on disciplined capital allocation and plans to make capital investments of roughly 4% of net sales in fiscal 2024.
Wrapping Up
On its last earnings call, this Zacks Rank #4 (Sell) company stated that the biggest factors impacting its show in fiscal 2024 are likely to be consumers’ economic status, cost inflation and the rising stability of supply-chain status.
However, General Mills’ focus on core priorities and the Accelerate strategy (unveiled in February 2021) bodes well. The Accelerate strategy aids GIS in making the choices of how to win and where to play to boost profitability while enhancing shareholder returns in the long run.
Shares of the company have dropped 15.6% in the past six months compared with the industry’s decline of 2.1%.
Solid Consumer Staple Bets
Inter Parfums (IPAR - Free Report) , which manufactures, markets and distributes a range of fragrances and fragrance-related products, currently sports a Zacks Rank #1 (Strong Buy). IPAR has an expected EPS growth rate of 15% for three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for Inter Parfums’ current financial-year sales indicates 19.7% growth from the year-ago reported figure. IPAR has a trailing four-quarter earnings surprise of 45.9%, on average.
Flowers Foods (FLO - Free Report) , a packaged bakery food product company, currently carries a Zacks Rank #2 (Buy). FLO has a trailing four-quarter earnings surprise of 7.6% on average.
The Zacks Consensus Estimate for Flowers Foods’ current fiscal-year sales suggests growth of 6.7% from the corresponding year-ago reported figure.
Helen of Troy (HELE - Free Report) , a provider of several consumer products, currently has a Zacks Rank #2. HELE’s expected EPS growth rate for three to five years is 8%.
The Zacks Consensus Estimate for Helen of Troy’s current fiscal-year sales suggests a decline of 2.9% from the year-ago reported numbers. HELE has a trailing four-quarter earnings surprise of 8.1%, on average.
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General Mills (GIS) Offers Update on Key Enterprise Priorities
General Mills, Inc. (GIS - Free Report) offered an update regarding its progress in three key priorities as part of its participation at the 2023 Barclays Global Consumer Staples Conference. Alongside, GIS reaffirmed its guidance for fiscal 2024.
Amid an evolving landscape, including moderating inflation, an improved supply chain and cautious consumers, the company remains focused on its core priorities in fiscal 2024. These include competing efficiently, enhancing supply-chain efficacy and undertaking disciplined capital allocation.
Fiscal 2024 Targets Reiterated
Despite a dynamic environment, General Mills remains committed to fiscal 2024 targets. For fiscal 2024, organic net sales are anticipated to increase 3-4%. Management earlier stated that robust marketing, innovation and in-store support are likely to drive organic sales. Also, gains from net price realization through the company’s Strategic Revenue Management initiative are likely to aid.
Adjusted operating profit growth at constant currency or cc is anticipated at 4-6%. Adjusted EPS growth at cc is also envisioned between 4% and 6%. Management expects the free cash flow conversion to be at least 95 percent of adjusted after-tax earnings in the fiscal.
Core Priorities Underway
General Mills is focused on competing efficiently. In the North America Retail segment, retail sales of at-home food categories continued to be higher than pre-pandemic levels in the first quarter of fiscal 2024.
Retail sales trends in the U.S. pet food category have been moderating of late, partly due to the reduced impact of pricing. Also, increased cautiousness about the economic outlook has shifted pet parents to more value-oriented products and channels, along with smaller pack sizes. Pet segment volumes are likely to remain under pressure in the months ahead. Consequently, management now anticipates first-quarter fiscal 2024 organic net sales to be roughly flat year over year in the Pet segment.
In the North America Foodservice segment, consumer traffic has been increasing modestly in recent months in away-from-home food channels. Segment net sales are likely to increase year over year in the first quarter.
In the International segment, General Mills is focused on sustaining the robust momentum. Enhanced service levels and innovation are likely to result in significant organic net sales growth in the first quarter of fiscal 2024.
Moving on, recently, the supply-chain landscape has consistently improved. Management is on track to boost its Holistic Margin Management cost savings to 4% of the cost of goods sold in fiscal 2024, up from 3% witnessed in fiscal 2023. GIS is focused on disciplined capital allocation and plans to make capital investments of roughly 4% of net sales in fiscal 2024.
Wrapping Up
On its last earnings call, this Zacks Rank #4 (Sell) company stated that the biggest factors impacting its show in fiscal 2024 are likely to be consumers’ economic status, cost inflation and the rising stability of supply-chain status.
However, General Mills’ focus on core priorities and the Accelerate strategy (unveiled in February 2021) bodes well. The Accelerate strategy aids GIS in making the choices of how to win and where to play to boost profitability while enhancing shareholder returns in the long run.
Shares of the company have dropped 15.6% in the past six months compared with the industry’s decline of 2.1%.
Solid Consumer Staple Bets
Inter Parfums (IPAR - Free Report) , which manufactures, markets and distributes a range of fragrances and fragrance-related products, currently sports a Zacks Rank #1 (Strong Buy). IPAR has an expected EPS growth rate of 15% for three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for Inter Parfums’ current financial-year sales indicates 19.7% growth from the year-ago reported figure. IPAR has a trailing four-quarter earnings surprise of 45.9%, on average.
Flowers Foods (FLO - Free Report) , a packaged bakery food product company, currently carries a Zacks Rank #2 (Buy). FLO has a trailing four-quarter earnings surprise of 7.6% on average.
The Zacks Consensus Estimate for Flowers Foods’ current fiscal-year sales suggests growth of 6.7% from the corresponding year-ago reported figure.
Helen of Troy (HELE - Free Report) , a provider of several consumer products, currently has a Zacks Rank #2. HELE’s expected EPS growth rate for three to five years is 8%.
The Zacks Consensus Estimate for Helen of Troy’s current fiscal-year sales suggests a decline of 2.9% from the year-ago reported numbers. HELE has a trailing four-quarter earnings surprise of 8.1%, on average.