“Having said that, I think we’ll have full supply on our grain milling businesses. “In terms of the question about flour milling and dislocations, I mean, I don't know that we’re going to see any of the benefits,” he said. Harmening declined to respond, but he did answer a question about whether the company’s flour milling and grain merchandising businesses would benefit from dislocations associated with extreme volatility in grain markets recently. We expect to be in the 80s as we go into Q4.”Īsked by an investment analyst whether General Mills was increasing its refrigerated dough production capacity this year, Mr. We expect to get better, but not near historical levels. We’ve seen an improvement in our case fill and on-shelf availability, but our service levels are still quite a bit below historical levels. So we spent a lot of time really working as a team to improve on those platforms. “In Q3, it was particularly challenging, particularly in RBG (ready-to-bake goods), pizza and hot snacks - so things like fats and oils and starch and packaging. “The biggest issue we’re seeing is really around material disruptions, ingredients coming into our plants to run our products,” Mr. Nudi, group president of North America Retail. In the analyst call, the shortages of refrigerated dough, pizza and hot snacks were topics for comment by both Mr. The incremental improvement was projected based on expectations for organic net price realization and improved mix in the fourth quarter relative to the third quarter. Organic net sales were forecast by the company to grow about 5%, versus previous guidance of up 4% to 5%. In part because of the improved results, General Mills said its adjusted diluted earnings per share for the full year now is expected to be flat to up 2%. “The company took actions to address the shortages and drove notable improvement in customer service levels on those platforms in the final weeks of the quarter.” “Net sales performance lagged Nielsen-measured retail sales growth by approximately three points in the quarter, driven by supply shortages on the refrigerated dough, pizza, and hot snacks categories,” General Mills continued. “Net sales were up 4% in US Morning Foods, which represents the combination of the previous US Cereal and US Yogurt units, and up 3% in US Snacks,” the company said. Sales were up 6% relative to third-quarter fiscal 2020 results, pre-pandemic. Sales were $2.81 billion, up 1% from $2.79 billion in the third quarter of fiscal 2021. Operating profit of the North America Retail business in the third quarter was $611.5 million, down 3% from $628.8 million a year earlier. We worked quickly to address those disruptions, driving a faster-than-expected rebound in service the final weeks of the quarter, which translated into Q3 results that were ahead of our latest guidance.” “Input cost inflation is at historic levels with increasing variability, and disruptions continue to impact our supply chain, including some acute supply shortages that constrained a few of our US platforms in the third quarter. Harmening, chairman and chief executive officer, said in prepared remarks released after the earnings announcement. “We are executing well in an operating environment that remains as volatile as ever,” Jeffrey L. General Mills shares climbed as high as $66.30 in early trading March 23, up $3.62, or 5.8%, from the March 22 close and just 65¢ a share beneath the stock’s 52-week high of $66.95. Investors reacted favorably to the results. Organic net sales rose by 4%, driven by higher prices and product mix. While sales in the third quarter were essentially flat, the fiscal 2022 figure was depressed by divestiture and acquisition activity, which netted to a 3-point headwind for sales. Unadjusted results were boosted by a pre-tax gain of $149 million from the sale of numerous businesses, including Yoplait Marques SNC, and Liberté Marques Sàrl to Sodiaal International in exchange for Sodiaal’s interest in the General Mills Canadian yogurt business, a modified agreement for the use of Yoplait and Liberté brands in the United States and Canada.
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