Generals Mills 2019Q1

General Mills reported earnings today (press release). US yogurt sales are down once again (by 2.8%), but the loss of market share to Chobani and the negative growth seems to be slowing down (-22% the previous year and -15% the year before that) . Margins are down (gross 32.8% from 36.5% and operating 14.7% from 16.7%), whereas operating expenses do not seem to have spiralled out of control yet (SG&A $743M up 9.4% from $679M, which is only slightly outpacing the revenue growth of 8.6%). Here links to the press release, 8K, 10Q, webcast and transcript.

CNBC: General Mills drops the most since March after reporting falling demand, lower margins
– Cheerios cereal maker General Mills missed analysts’ estimates for quarterly sales.
– Results were hit by lower demand for its snacks and yogurts in the U.S.
– General Mills, like its rivals, is battling rising freight costs as railroads and truck fleets hike rates, as well as higher input costs.

Bloomberg: General Mills Dives Most in Six Months as Revenue Falls Short
– Cheerios, Yoplait maker reiterates tepid full-year forecast
– CEO Harmening defended price paid for Blue Buffalo pet food

Reuters: General Mills shares tumble as first-qtr sales, margins disappoint

CNBC NBR: Sales growth dissapoints at General Mills

Below figures with regards to revenue, expenses, profits, margins and YoY growth rates for the entire business and for each of the segments. Further below comparison of margins and multiples on an annual and quarterly basis with other packaged food companies.

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