EARNINGS UPDATE: General Mills, Constellation Brands

General Mills and Constellation Brands both reported earnings today.

Here’s a closer look at highlights from both reports:


Fourth Quarter 2021 Highlights

  • Net sales declined 10 % to $4.5 billion and organic net sales were down 6%, reflecting the comparison against the surge in at-home food demand at the outset of the pandemic in the prior year
  • Operating profit of $548 million was down 34%; constant-currency adjusted operating profit was down 18%
  • Diluted earnings per share (EPS) of $0.68 declined 33%; adjusted diluted EPS of $0.91 were down 19% in constant currency

For the full year, net sales of $18.1 billion increased 3% from the prior year; organic net sales were up 4%. Operating profit increased 6% to $3.1 billion; constant-currency adjusted operating profit was up 2 %.

Diluted EPS of $3.78 were up 6%; adjusted diluted EPS of $3.79 increased 4% in constant currency. The company resumed dividend growth and share repurchase activity; total cash returned to shareholders increased 29% to $1.5 billion.

The company anticipates that the largest factors impacting its performance in fiscal 2022 will be relative balance of at-home versus away-from-home consumer food demand and the inflationary cost environment, both of which remain uncertain. Additionally, it is expected that at-home food demand will decline year over year in fiscal 2022 across most of its core markets, though will remain above pre-pandemic levels.


First Quarter 2022 Highlights

  • Generated reported basis EPS of $(4.74) and comparable basis EPS of $2.33, including Canopy equity losses of $0.18; excluding Canopy equity losses, achieved comparable basis EPS of $2.51, an increase of 3%.
  • Beer depletion growth accelerated, driven by robust consumer demand.
  • Wine and Spirits Business delivers strong, organic net sales growth driven by solid performance from Meiomi, The Prisoner Brand Family, Simi, Ruffino, and High West.

Constellation’s beer business posted double-digit depletion growth of nearly 11%, driven by continued strong consumer demand in off-premise channels, as well as a return to growth in on-premise channels. In the wine and spirits category, consumer-driven innovation initiatives continue to contribute to net sales growth and accelerated versus prior year driven by Meiomi cabernet sauvignon, Kim Crawford Illuminate, and The Prisoner Unshackled.

“We’re emerging from the pandemic in a position of strength as we kick off our fiscal year. Our Beer Business delivered double-digit net sales and profit growth and our Wine & Spirits Business is poised to drive accelerated growth and profitability from its portfolio of high-end, industry-leading brands,” said president and CEO Bill Newlands.