Pour a Bowl of General Mills: Fool by Numbers

On Dec. 21, packaged-food giant General Mills (NYSE: GIS  ) released second-quarter 2007 earnings for the period ended Nov. 26.

  • 5.3% sales growth might not sound like much, but after last quarter's 6.8% revenue growth, this marks the first consecutive quarters over 5% since 2003. That generous share buyback program helps, too -- General Mills has repurchased 14.2% of its shares since the first quarter of 2004.
  • Margins and returns on assets or equity remain predictably stable. There just aren't a lot of surprises in cereal and taco shells.
  • Net income and owner earnings are up, while GAAP cash flow figures are down. The difference is that operational and free cash flow numbers include the effects of much larger negative changes on the balance sheet than last year, to the tune of $282 million.
  • Seventy-five of 90 CAPS participants think that General Mills will outperform the S&P 500. You can share your own thoughts on the company in CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

Q2 2007

Q2 2006

Change

Sales

$3,467.0

$3,293.0

5.3%

Net Profit

$385.0

$370.0

4.1%

EPS

$1.08

$0.97

11.3%

Diluted Shares

357.0

384.0

(7.0%%)



Get back to basics with a look at the income statement.

Margin Checkup

Q2 2007

Q2 2006

Change*

Gross Margin

36.9%

36.5%

0.4

Operating Margin

19.4%

19.6%

(0.2)

Net Margin

11.1%

11.2%

(0.1)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Management Effectiveness

Q2 2007

Q2 2006

Change*

Return on Average Assets

8.2%

8.0%%

0.2

Return on Average Equity

28.3%

28.1%

0.2

*Expressed in percentage points.

See how management puts its financial tools to work.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Cash + ST Invest.

$492.0

$730.0

(32.6%)

Accounts Rec.

$1,291.0

$1,167.0

10.6%

Inventory

$1,359.0

$1,258.0

8.0%%



Learn the ways of the balance sheet.

Liabilities

Q2 2007

Q2 2006

Change

Accounts Payable

$738.0

$672.0

9.8%

Long-Term Debt*

$3,980.0

$4,584.0

(13.2%)

*Including current portions of $1.47 billion and $589 million, respectively.

Cash Flow Highlights

Q2 2007

Q2 2006

Change

Cash From Ops.

$565.0

$787.0

(28.2%)

Capital Expenditures

$149.0

$113.0

31.9%

Free Cash Flow

$416.0

$674.0

(38.3%)

Owner Earnings

$298.0

$250.0

19.2%



Find out why Fools always follow the money.

Related Companies:

  • Kraft Foods (NYSE: KFT  )
  • Kellogg (NYSE: K  )
  • Smucker (NYSE: SJM  )

Related Foolishness:

Kraft is an active Motley Fool Income Investor selection. Find more great dividend payers with a free 30-day trial to our income-generating investment newsletter.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, socheckFool.comfor more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool contributor Anders Bylundhad no position in any company mentioned, though he did chow down on some Kraft cereal this morning. Fool rules arehere.


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