GIS - Earnings call transcript Q3 2021

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Operator

Greetings and welcome to the Fiscal 2021 Q3 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded Wednesday, March 24, 2021. I would now like to turn the conference over to Jeff Siemon, VP of Investor Relations. Please go ahead.

Jeff Siemon

Thanks, Jennifer and good morning to everyone. colleagues Mills my us. for of behalf at thanks General joining On

statements President Bruce, Kofi President Jon Nudi, that here CEO; and virtually am Bethany America Furthermore, I note European a our the are our to and prepared are Yoplait that yesterday potential for assumptions, to proposed morning’s results. for available Also by third had transaction statements the a have to announcing and labor for forward Harmening, of which remarks site. it’s I impact Investor our Relations on filings other this on press of reconciliations views Chairman release that to Q&A current that of forward-looking our is in everyone to We we end North Retail. presentation to our will issued pandemic the the related made consultations, I ‘XX. results to our regard on memorandum CFO; that forward-looking management’s and and and for expect note fiscal close factors call. live assumptions view important looking appropriate our are customary transaction, materials, make operations to COVID-XX today’s release, press that listen session press our our just subject maybe and segment; on Quam, hope calendar and sale morning with our Sodiaal. that have could to of to Q&A closing Group including refer chance today, may proposed to our still regulatory our review impact year. which discussed we Pet of based we session conditions refer in understanding we Please non-GAAP the quarter information, on and in our our Group Jeff release facts this

this call holding are from We locations. different

Jennifer, technology get get hopefully, started. goes everything with we you can cooperates And that, can smoothly. question. us and So first the into

Operator

Our line you. with the from Instructions] your Andrew [Operator with Thank Please first Lazar comes proceed question. Barclays. question of

Andrew Lazar

Good the for Thanks morning, question. everybody.

Jeff Harmening

Good morning, Andrew.

Andrew Lazar

Great.

shift I like would the you to I but with you fiscal expect. that the of it roughly growth seem remarks. look is of that sales Thinking be a a laid methodology discussed expected realize many inventory refill be occurs reopening X-year kind the you slower of XQ again maybe is basis. growth with likely some would that and into in reported this – X-year CAGR think out sales growth in to to sales And prepared than to of fiscal a as organic imply XQ, believe currently suggest bit you what on way stick that likely growth I in in line deceleration would about XQ XQ, would it

a of So it of your you. that this what’s I of to characterization if that’s informing viewpoint? fair a just And juncture. trying am at is, if get thinking Thank sort sense

Jeff Harmening

Harmening. Jeff you, is Thank Yes. This Andrew.

demand addition I by stimulus this pandemic as the all right. at weather-related clearly U.S. including mean, exactly as that as look third and quarter fueled of that have the was You year, we spending well the world, events. some in the over high to

think. And as of school U.S., at and the seeing restaurants are really as back have gradually really, and of look business at of about be and general, you are XXXX, we XX% we our in month that, some quick-service was pre-pandemic. is what higher As as the pounds XX%. about that seeing quick-service weeks we you sales to bounce in going and restaurants, it last pricing, that aren’t in schools healthcare are QX, foodservice and industry the healthcare. if than online believe terms at Andrew, And the look we consumer behaviors the seen is getting we our look confident of is fuels year, first was changing and both that would in declined quickly the as couple And

So that relatively quickly. will bounce back

of at are clearly, and XX% it seen Another canteens related not take eating is if we And that’s travel, driven And to casual was finally, decline that to of all, way. business places longer the because does about have to going work back. of year going then we last going away-from-home to cutback, the to same over and dining to take that’s come decline leisure, by really industry longer half think term ever work. at the

a going to flexible home People at little be want are than before. were working schedules. more we We

While cut remotely. consumers have more now business not going things are lot plans realize much maybe and technology has up traveling making than be because a people we can to do of vacation as they we

quarter have in will what expected kind we we what see are this there fourth and we inventory first have on move than so only the based fuels we and what weeks over of of this not but seen our year belief better past buildup, what month, the in And is quarter. some the few be confident the

Andrew Lazar

leave I much. very there. Thanks will it Great.

Jeff Harmening

Thanks.

Operator

Ken your the with Our question. line Please next Goldman with JPMorgan. from question comes proceed of

Ken Goldman

Hi, thank me. you. for Two

looking appetite there of upwards your buybacks. aggressive we share $X.X billion prior for years back company on Buff some about were repo? Just spent First, the on think how to the should deal, being

one. within my think do we least level around? the more or keep at should want wellness So, you possibilities to is That’s little powder a this first dry

Kofi Bruce

morning. Thanks This we really ended Ken. are Good where balance sheet. strong we position is a the for quarter absolutely think I in Look, a with Sure, the question. Kofi.

think have net I was of that debt-to-EBITDA, means progress of capacity goals. started. which to restore I great use will ratio our that continued is have return. our at important And levers we we the all leverage X.Xx make expect I Our to we with our capital cash against think signal full already

share we our beyond done, the to have anything I we the as have think any repurchase the look a so cash sheet reminder, and of those, flexibility And commit policy. of is excess last extent steer to can’t that continue would and allocation we free extent the what capital act leverage use the full to I flow. where balance to while manage that So, is to

Ken Goldman

this Thank you for of subcategory you for issues. of changed the it’s may down, into It but Bethany, signs but pet broader and showing Has of not of sort see really is a lot still within food, wait Blue supply refrigerated that. it your about predecessors said, kind break in Buffalo’s And state, a to talking some slowing is attitude? chain then all small, except some at of implied it’s have necessarily appetite what growing customer have or it? not quickly,

Bethany Quam

pets thanks continue question. really the their to have hi, offer pandemic, wanted really forms. Well, we have What seen for this to throughout that is parents different pet

here. So, talking different about you are forms

So as different [indiscernible] the the our as we and mix to to incredibly still well fresh. food. wet very is from performing have a small It’s mixing seen continuing parents between kinds But category. of well pet food of business trend then wet cans part

parents Blue all So take and it. continue Buffalo pet want different to those we to at we think to areas master see the will brand where look continue

Ken Goldman

good. Very

Operator

question. the with Our comes Growe next with from of Stifel. Chris question line your Please proceed

Chris Growe

morning. good Hi,

Jeff Harmening

Chris. Hi,

Chris Growe

with better capacity. a I some for inflation to start you very in to to cost the secure and pieces with and the moving margin kind cost first was on – incremental understand about the of the that – question inflation just gross gets had the clear there

this simple inflation quarter? of also couple the a understand a understand in at to and the things, third to want rate then just quarter And of inflation relation factor look I the in all So, for was fourth might margin just how you to quarter? weather then like gross

Kofi Bruce

will to Thanks be address your I Chris, for question. Sure. happy asking.

in you are network we to think other you factors the demand have higher to environment. you up costs logistics cost as will part I as the there higher demand tell certainly, in environment. our the to as operate high costs So gone responding of And – about in that this relation flagged,

also levers and to where need incremental X% of an to related where is as which the I are is were to in the new operating but and up some network, where about we in open be our costs have we rounding reposition the beginning Specifically, about reach position now environment, capacity, X% to we as would are inflation. freight we external are year HMM seen in opportunity characterize supply for higher the we to the lanes expectation note to the as down get all And QX, we we rounding we while to we are and on to year, us it And our will way a guidance at giving to think of X%, QX is to I we important F up still the of not with our quarter. ourselves as critical inflation. weather full expecting in to And ‘XX. it’s act anticipation think X% are I inflation, we the step SRM our about the for taking set into of inflation thing – within are

Chris Growe

higher you just been then is of had And foods up of the come had a industry? that’s to spending Do one at you And on costs, forward in could sort also some Okay. in a question, that. launch all continue? where in a promotional not seen separate Does pet, for you Thank then division relation taste in Bethany. have through if see see that I [ph], some through? for business? there, that around promotional looking for you pricing costs But incremental commentary the there has but perhaps that so yet that. I for we where Has that could coming that the step increase industry,

Bethany Quam

new we business do launching so support, the have are with to starting that. cost a you Well, and

see category. entire we the right within we a at portfolio. for spending so And can the rate And that’s work ourselves again,

are launch now. costs are those So, that talking we right

in of terms part category. of is every continuing absolutely the that premiumization In

part cat to per cost premiumization see category cost definitely every So, wet food in the you premium pound than dry, on but continue on the basis. higher a per see pound of what

Jeff Siemon

original add XX% I quarter, the last this is in would basis, versus a I would margin Chris, pet to the is year-to-date year. XX.X% note about little Siemon. costs just Jeff the a on about over at question that segment just

where business cost, very growth a So, standpoint. we about while – was quarter still bit a we are incremental for there feel good and year-to-date from margin was the that of a maybe little

Chris Growe

Okay. Thank appreciate and that for you it.

Operator

question Please line with proceed question. Lavery Sandler. Michael of with comes your Our Piper the next from

Michael Lavery

morning. Good you. Thank

Jeff Harmening

Good morning.

Michael Lavery

driven Just of kind year. a following you volume of versus had course more much just of up Can have the the the pipeline of segment, fill that behind is on give growth momentum? you run-rate how over Pet from some sense launches a new accelerating type

Bethany Quam

Yes, thanks question. the for

continued to have movement of we the accelerate. So, the see business

we when inventory, being movement reported about movement bit little ahead went bit a XX% little talked accelerated of had sales had but our we QX, into in QX. our we so And a as

point. of And feel about the this so we levels inventory pretty good at

Michael Lavery

question how Okay, ahead to trying positioning get of thinking on high then on that following looking of how it of sense if little be kind up bit, sticky yourself and sense for to great. think just positions might back? give much the versus ‘XX a may And at can the just some a prices inflation you in your run are you a come you much level? take current a waiting What’s

Kofi Bruce

want we are preparing at And inflation. get ahead. for I Well, too level, far don’t high certainly, higher a to

on reiterate ‘XX we levers strategic you just management strategic all back specifically that come I using preparation around HMM basis talk revenue are will the our management. F but our of revenue QX in plans and and about We inflation and actions will the to taking expectations, of of

Michael Lavery

so Thanks much. great. Okay,

Kofi Bruce

You bet.

Operator

with your with comes Credit question Suisse. Moskow Please next line question. proceed from Our of the Robert

Robert Moskow

Hi, Kofi and Jeff.

levers inflation I I you think But to than those price it. going increases within I are know same got. as answer to higher get just thought have think the multiple you levers. of list is But SRM, accelerating one I am offset Michael and

competitors say it retailers right that Is contemplated? it’s easy, know inflation. through? willingness you there look, lot about that are is utilized that to about a it the of And inflation? is talking inflation I that, pass than to So, to talking facing who fair of will fair lot it’s not more now are is originally a have say your be more just but to never

Jeff Harmening

Jeff. is This

different same at a question, answer, get you Let it you least the because from that me take get then person. if

Robert Moskow

If you would, yes. please,

Jeff Harmening

would I very saying start by global. and inflation is that broad-based So actually it’s

we across globe and the commodities, across it logistics, seeing are we So things seeing it’s inflation are across aluminum like and across broad-based steel.

go saw to are environment see just are going in will of it, to net environment, realize global, same we ago, HMM it, seeing like you this years whenever are broad-based our and we competitors so we this And pricing. and it thing, are realize so few our seeing And of kind we first, inflation seeing retailers kind certainly the that’s pricing. when it’s where you an but a

will We of mix. it’s but will price pricing, the list manage all and how it then also, just tools is includes pack and architecture, use we it’s price list that and we finally, pricing, trade

will pricing, comes go depend they on geography. macro levers. we to when We and And depend it the pull the need use to micro those certainly so fast from to all and certainly levers the pretty on category you

so, we we levers all know would will use – to our in fourth that all here quarter. And those you we begin process I want use and disposal would the at the

Kofi Bruce

lever holistic context, reminder for management, add just margin that first is our me let And additional Yes. right. a

productivity, which been averaging goods So, our annually. cost has about of X% sold

So the four productivity. issue, through or get would to points on first we the are so, not expect address gross SRM we relying to just margin

Robert Moskow

leave I will there. Thank Okay. it you.

Operator

comes question Jason the next Goldman Please Sachs. Our your from question. proceed line English with with of

Jason English

Hey, Thank you for taking. folks. good morning

Jeff Harmening

Good morning.

Jason English

I sort the think at ‘XX question of inflation. am this for quarter are savings so guide trying here. below back going And levels to you understand around to margins be about fiscal head it, wrap I the profit really and my the quarter, just talking your fourth keep think to trying I below exceeding margins actually and HMM of just coming or point I in margins that’s pre-COVID. guess I Kofi, great clearly, was same

below still? other expect have expansion pricing quantify out stacked for are those other the leverage, there pre-COVID. would those for year, say falling us COVID, have Can huge actually are margin you up costs falling maybe got best You them? and the phenomenal months? offsets? to offset? which look with we profit next meaningful And you the those actually the over the So, transitory deflation on pricing related in net through volume I year, What the not right help rolling of offsets What and XX XX, You is years. as

Kofi Bruce

Sure. Sure.

freight look in key speak external with to after the logistics related of with this are environment you operating So, here. are spot cost need position those, Foundationally, we at let in to higher securing that, us costs more rates, capacity higher external to environment capacity a we from supply me securing mid that puts support inflation that some to associated which market freight drivers at in this would we where the And additional that in single-digit the us operating chain. lanes environment. for note seeing about in

supply to are delivering So customers is exposed lanes, distribution on those and the chain spot as the external higher. markets cost of to centers we

those tremendously inventory demand balance, to costs linked I factors, and would to as to expect balance So, abate. part the of the driven be those both a the the into where environment amount the because would that And fair largely was more obviously, our supply service two inventory drawdown and just as QX and we expect to to demand into come used in I system strong levels more demand. in are of come leverage system the retailers in lapping us a

Jason English

the to That’s we attack these really takes are away? look we Just logistics we any there to like our that of transitory costs some so Is right contemplating? as of sort and those have quantify helpful. can that got fall way things model, puts

Kofi Bruce

some the want leverage, the see that to the you of of to more those to specific sufficient QX, I we key benefits to are say offsets drivers too and it’s – as but expected Yes. to leverage than offset this specifically think I don’t year. on about think get fair some

Jason English

you. thank Okay,

Kofi Bruce

bet. You

Operator

next Alwy Our from of question. the comes question with Faiza proceed Deutsche your line with Bank. Please

Faiza Alwy

Yes. morning. Hi, good

from bar is Andrew’s So to what guess how you of you platforms. about your follow-up about global specifically, could And how snack don’t within I will about you to habits category, I if that talked expect Jeff, that, patterns think on here. the change. I wanted But you trend think you consumer see was consumption one and which to talk how question, wanted

thinking So is category I’m how different that the segments. in many The there category. are curious recovery you’re about And overall fragmented.

So play the share just how aspirations you you like overall wondering if could would around to your category. in

Jeff Harmening

Yes.

thanks let the So for me question. make –

schools, clarifying the all it we eating a was to will people return make What back. to volume out return point. back pandemic. near it before, a where we’ll me Let of as was that see happening that see people the demand is higher just to reversion in and way not of some future be than pre Certainly,

way not would think analysts is if I at-home than investors I today snap it as is going seen it envision and any the normal an is higher different. U.S., volume but And we’ve it will So elongated, in pandemic. was to be it’s to seeing our demand current and believe will us as meeting, that currently And that we’re pre high what return be pandemic. environment norm before to some will feel just outside the where lead as the to to was some back channel in what eventually return more

bars So much. have high to been and our same level see as Nudi people then I’ll as may is is that true not Jon energy a recently, the on-the-go, category the little been down commentary, fact of bars category, because that, hold would the give it weigh we and in. has really on-the-go In want because

little start little bit. bit category As the a more, out improve a to people get seen we’ve

with I’m of fact, our progress share. really pleased terms in In

as well Europe We’re be in U.S. as category world well the all the over bars would Australia. as as competing the effectively that

competing want have anything bit, other Jon, in see to return – you category starting do add to to it. a any we’re quite and effectively so been that? little that we’ve And you

Jon Nudi

mean really the nature bars down I Jeff, time on tough is it, double the of single mean, year-to-date. high digits categories. grain you snacks hit I Performance on-the-go down with is a digits.

So again, point. that’s toughest the been to

mentioned, we’ve been focused. Jeff As really

In growing things fact, bars. share that one is actually of proud of total we’re I’m the

the this strong as is As some packed struggling with there, news out rolled many category, Valley in We’ve out number of are one remember, And which been in last wrapper gone the base years. Nature around some recyclable really category we’ve great really you turnarounds got just brands. as year. past by this the launch our that well marketing few

So back to Jeff And bounce how normal more will we get a as the growth. mentioned, about to good we’re we back performing. feel time categories

Faiza Alwy

there Great. And Bethany then could advantage call. little the being And give was us bit Blue Blue prevalent. are relative Buffalo everything Early hoping And the just treats the a FDM channel of the take is it’s treat I wanted else where a to more that I color on that also has on, of think as a view business. was that bit more you been side Bethany, on done. into disappointing moves to I

if curious more more whether marketing? side sort and of be am have treats or business more potential innovation, can Any of any long-term work do business? I there of you needs that done to you the around thoughts the So, you on the is think that

Bethany Quam

Thanks. Yes.

treats in you channel. treating. is mass with definitely into You’re get terms of right, that channel, absolutely sold the food resonates more pet correct, drug Buffalo as exposed Blue that in parents are there

quarter, behind the bones. new are innovation launching in fourth a here see You’ll we

bone opportunity crunchy is alternative, that – parents true the Blue feed to biscuit to pet meets for promise. And so the a that clean

better. treats And can continuing do we to we know in are but well so the we do category,

as as architect we’re launching And so work as doing well both we innovation pack well. price some have

merchandise. we’re so to And able

than treat If responsive is more the food you to segment category, merchandising look segment. your obviously at the Pet

how today, whole you remarks up picture we if of in have now. so And portfolio our show will look the a

our so sticks, when are merchandise, new offer to able And the sizzlers, we cover we and retailers really types. bone, different treat our all

continuing are we So merchandise. to press

moments. to We behind of starting different are types some also marketing tradable do

got to that drive it. pushing a higher to have growth. we would to a of We’ve We all are so on continue huge areas category. business. And share like It’s

Faiza Alwy

Thank so much. you Great.

Operator

proceed line from comes with with question Modi question. Markets. Our next RBC Nik of Please your the Capital

Nik Modi

Good morning everyone.

Jeff Harmening

morning, Good Nik.

Nik Modi

just is a General wanted a just ask pretty My to new within new So construct as look of I you kind just about then is the be wanted onto in retail, at all understanding I kind backdrop to quick in I area SKU just have to XXXX. of understand the these really items. going And how rationalization to a this shelf? active happening Mills follow-up. – that going work of get products is And in to

Jeff Siemon

you take want do to that? Jon,

Jon Nudi

Yes, sure.

is tell for and SKU At going really retail by optimizing and engaged So shelf well. same I’ll new new the driven space. that as obviously, retailers looking really are on And are the rationalization is time, products innovation. there consumers some always click-and-collect very by you,

X well. fiscal our in X new top And record. great got top X that we’ve performed in category. in we’ve and X track sell So ‘XX, the new of us got products. the launches In, a cereal, the of products track record In we’ve really helps got quite launches

higher. is place perform. And in the We’ve track bar to to doing as help have got items. have a of really that, record we us coming we will which the got items year. new So good We’ve

as products thing and really well. help The is at us distribution looking And categories our in is that. our up new key actually other overall again, share it with

approach we’re to So going it. that’s how

for the have we We get really share closer year. which are the we well, fiscal to ‘XX about we’ll as plans excited as coming new

Nik Modi

retailers we have about SKU prioritize shelf, how would And which as of I additional brands next kind Jon, a some as over just XX the expect result rationalization of the you months of and changes? mean, on space those think to

Jon Nudi

as Well, they shelf shopping highest getting shelf space are their as click-and-collect for I mean, think really well as operations. now bricks-and-mortar the I the turning using SKUs, those obviously, right

a that’s I from really to track space shelf a success. innovation us. And record good our for of So then again, standpoint, top thing grow SKUs and looking that are for an think continue retailers

the are can looking a if companies It’s think items. some our where first, that we cases, have ago, environment in to I do few them as smaller those coming that in So we for items right that, now. all were I tough jumping years retailers think are over we proven a

So really believe items I these And manufacturers all excited brands good turn you that about record get well, that with how deliver. to retailer have think sees and a And do products we’ve able building recently. a new do shelf. I time that track for more big it’s to are can been

Nik Modi

Excellent. Thank I on. you. will it pass

Operator

comes question Consumer line next with Our the question. Feeney proceed from Edge. your Please Jonathan with of

Jonathan Feeney

fear like we is would that at thanks. and and Is the a love little response to you effort raise touched growth discounting cost this let and pricing. going and clear more headlines it given seeing morning this I’d marketplace? on your XXXX-type front? Good in just private you this – pricing here, this that’s given tactical the to the a about right not yet like that I’m least everything – the a clearly something Because or or and before, your at are feels in on inside that’s here organization, a to is in costs surprised label bit rise yet, not but visible dedicated would look environment – to a just little input that there

Jeff Harmening

Jon – go ahead, Go ahead. Kofi.

Kofi Bruce

inflation Jon, the certainly now answer your right just question, to are that Hey, be expectation higher. No. to think going on I responding is we

Jeff seeing broad-based. it we’re As earlier, referenced

hard using SRM at working seeing are the our global We’re in levers. businesses, it and frankly of all we

actions fact, market have of you front. some already on think in we acting. And in our businesses, see will I So the us in SRM

sort note we’re just So right I now. of that would moving respectfully

Jonathan Feeney

recognize Okay. I a it’s Thanks very topic. much. sensitive

Operator

your from comes the question of Guggenheim. proceed with next line Grandet Our question. Laurent with Please

Laurent Grandet

everyone. good Hey, morning

Jeff Harmening

Hi, Laurent.

Laurent Grandet

in like segment. understand to to negative it Pet quarter. come as the on the the in like dynamics I’d Hey, was back I’d better price/mix

Third the where specialty quarter, mean, asked for a grew also time, in and you for mean the treats, you your but said, first and premium pet I you which probably price. launched weight in [indiscernible] in premium – I

should So price/mix quarter understand that segment we in price/mix this forward? better Thank was the and what I’d how like going negative about you. in driving think to

Bethany Quam

the Again, for thanks question.

our So up the into year, the for XX%. our months profit right, and up are sales X is XX%

drive can the So we’re mix vary we depending business how channel. about feel good the on right? able in really Our to quarter,

And to a so as this build business we young is some channels. out, in really continue

out. from building mix. We variance the product mix, also we’re a have channel so the And didn’t but

what’s Blue And in parts I And invested we business. premiumization. about that the part. and right to the by Buffalo good the by price/mix, pet continue again, by long-term feel category we behind driving will can is is solely so that we channel, mix. have the product vary quarter, price/mix, different the of ensure it

Jeff Siemon

business. to – a add Laurent, were in I’d very first high price/mix as just everyone, the and this first the comparing that that, Jeff where more line is Wilderness it’s half we Siemon. our were still especially a broadly so reminder against into the of half year, year expanding last we drug food, and mass

so probably half. a little headwind into back a first the comparison bit the half, through that was And maybe

we’ve and the Bethany mix are fully of expansion. which news go positive. treat you’re the And As as and in the we segments, forward, now innovation certainly a said, all lot is that comped seeing wet

we about where here. good go feel we So from

Laurent Grandet

your growth, you also us on of like profitability play same in business the Canada. Thanks. of the it in there. please? mean, your Thanks. in faster? got in have topic. color more terms a growing and you to, completely type to bit in I the Canada, U.S. Could visibility is Canada on I play about that some think different question, much a should about My It’s we second color maybe Not give as

Jeff Harmening

good on Jon a Why that Canada. pension have don’t We business? have Nudi market I the commentary in provide of some

Jon Nudi

business And in business business in total Canada. Liberté. like really we Yogurt Canada. Laurent, it��s Yes, about business, of our us our for the is third actually, bigger

takes greek about Canada our the things leading And a one yogurt versus for yogurt it’s of XX% of Canada. business XX% love Liberté we in So is Yoplait. total in

years few U.S., the so share strong back a very position as result in of and the into – a we well and trend while that market So did we a in in market. Canada well

of is some well to like more move to Canada exposure coming, new probably as that have we’ll our really we we highlight the business other forward, things but in as So performing we’ll products we and and speak.

Laurent Grandet

will you. Thank it you. Thank I pass on.

Operator

of Our with Please comes with your ISI. next from David question Palmer the Evercore line proceed question.

David Palmer

Thanks.

As there I’m look faster you and within within have that know, and sort even categories, are you our in pet than X-year insights and reopen you trends retail, And follow-up. as some impact I seeing? garnering others, on the about are of that Texas what of at wondering, and you’re individual Florida. maybe reopening the markets U.S., some the that, those retail micro are examples, some a

Jeff Harmening

Yes.

So Jeff. me David, let this is –

Let on year, year, I’ll me the little the past look provide we’ve what trends so. at at-home across But month the little a last we our seen bit markets. last really or the in a and you of seeing we’re take as background

you reopening We’ve have markets, some across those closed, that than accelerated the been has the because be at-home – more of lot And relatively especially may open And pretty open. seeing at-home situation. the they really The more on over of markets weather as relatively than have or less those consumption. even away-from-home markets month, data but gets year, a it’s growth been are have across last a the because consistent past we’re the performance whether of but – at-home others, more that know. seen been talk couple trends there points challenging

last at eating, snowstorm the But storm. month, say it’s recent to which you be pieces. this because be trying huge And a up for that I anything. counterintuitive, short-term, elevated a which its really see and part do. so Texas difficult to the had bit try up, pick to demand variables would to they over in huge consumption but the So opened but and away-from-home if that’s example, quite over winter look that would would Texas but at-home And don’t it, you of has hide

so we’ll of know I we’ve And lot once quarter more seen end this think at a the more.

over tell long-term, the have I what now, demand the right elevated seen across last So we year, over you can is markets.

many there hard to are really Over It the term, shorter apart. pick to is them variables so play.

David Palmer

the you And year, both costs headwinds at when just and COVID-related COVID-related we’re up look supply but feels pass being it is It that. pressure such with chain indirect? essentially direct of ‘XX, will going – that look costs, could indirect trucking last fiscal and cited week-by-week on. XX? fiscal be in basically I’ll logistics demand sympathize backward, there the sum But example, be from that maybe terms I for looking freight And elevated you cost, and lapping some are in gross under like you margin now the what we that an we and to on. and it’s that this

Kofi Bruce

the expect add given other I’ll some costs And protocols the sure. leave – the that portion a dispensation days. costs, of such sort of more and adjustments in of list, our we’ve into we’ve good COVID-related policy And of to security normal the environment made some a Obviously, as to policy Yes, with to we some get those trends. back I of in normal early as work line employees.

you consumption pre-COVID think a above talk into go-forward potentially So not home full F levels. elevated our demand I’m I way than this that work basis as still even of this year, to wouldn’t lower quantify ‘XX we cost going as but point, a but and at base about we’ll about F ‘XX. build this being for at more on of off

David Palmer

Okay, thanks.

Jeff Siemon

think I have. that’s time we all Jennifer, the

time I the questions, the and we’ll Thanks, and for And go are and interest. out we’ll talk So course up the couple of healthy, close please safe follow-up there you. If quarter. hope ahead out next again over days. next think everybody staying we of reach now. everyone, and taking is you Thank the

Operator

conference call. This your everyone. Have you kindly day, and thank your that today’s you a ask does lines. We participation disconnect good for conclude

General Mills (GIS) 24 Mar 212021 Q3 Earnings call transcript