On June 28, General Mills
- Net sales were up by 6.9% to $3.06 billion, backed by 5% unit volume growth and strong sales in the snack division.
- Operating margins shrunk by 1.1%, thanks to a 16% increase in consumer marketing expense in the quarter.
- The company announced an increase in the quarterly dividend rate to $0.39 per share payable in August 2007.
- Management expects the company to earn $3.39-$3.43 in EPS, or 7%-8% growth for fiscal 2007.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q4 2007 |
Q4 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$3,061.0 |
$2,863.0 |
6.9% |
|
Net Profit |
$224.0 |
$222.0 |
0.9% |
|
EPS |
$0.62 |
$0.61 |
1.6% |
|
Diluted Shares |
360.0 |
364.0 |
(1.1%) |
Get back to basics with the income statement.
Margin Checkup
|
Q4 2007 |
Q4 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
35.0% |
34.4% |
0.6 |
|
Operating Margin |
13.3% |
14.4% |
(1.1) |
|
Net Margin |
7.3% |
7.8% |
(0.4) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q4 2007 |
Q4 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$417.0 |
$647.0 |
(35.5%) |
|
Accounts Rec. |
$953.0 |
$912.0 |
4.5% |
|
Inventory |
$1,174.0 |
$1,055.0 |
11.3% |
|
Liabilities |
Q4 2007 |
Q4 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$778.0 |
$673.0 |
15.6% |
|
Total Debt |
$4,952.0 |
$4,546.0 |
8.9% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
2007 |
2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$1,765.0 |
$1,848.0 |
(4.5%) |
|
Capital Expenditures |
$460.0 |
$360.0 |
27.8% |
|
Free Cash Flow |
$1,305.0 |
$1,488.0 |
(12.3%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Foolish Forecast: General Mills Still in Charge
- Kellogg's Q1 Not So Gr-r-reat
- Before the Call: Slicing Up Kraft
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