On Dec. 21, packaged-food giant General Mills
- 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) |
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 |
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%) |
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%) |
|
$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:
- Three Cheerios for General Mills?
- General Mills: A Bargain in the Grocery Aisle?
- Eat Healthier, Save More
- The Demented Dividend Guru
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, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned, though he did chow down on some Kraft cereal this morning. Fool rules are here .
