General Mills (GIS) 20 Mar 242024 Q3 Earnings call transcript

Company Profile

Participants

Jeff Siemon	executive
Andrew Lazar	analyst
Jeffrey Harmening	executive
Kenneth Goldman	analyst
Max Andrew Gumport	analyst
Christopher Carey	analyst
Kofi Bruce	executive
Robert Dickerson	analyst
Jacob Aiken-Phillips	analyst
David Palmer	analyst
Pamela Kaufman	analyst
John Baumgartner	analyst

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Audra and I will be your conference operator today. At this time, I would like to welcome everyone to the General Mills Third Quarter and Fiscal Year 2024 Earnings Call. Today's conference is being recorded. [Operator Instructions] At this time, I would like to turn the conference over to Jeff Siemon, Vice President of Investor Relations and Treasurer. ahead. go Please

Jeff Siemon

had and our joining Audra Relations on to Thank available prepared on hope everyone. third release, morning the Thank to this materials, listen this good which morning website. for our everyone I results. us fiscal and session Investor to for you review quarter press view you, remarks XXXX morning time presentation our our our made Q&A we

Chairman may that assumptions. It's factors statements our this of in on our Bruce, make CEO; forward-looking and important we management's here and with and I'm forward-looking are session, CFO. views morning's note Please impact which our on based may to morning non-GAAP that today's for could and for call. be that Q&A to discussed reconciliations Kofi press this statements Harmening, current release information, refer Jeff

first Let's to and the right go get question. ahead

if please. started, you can us So Audra, get

Operator

[Operator at Instructions] We'll go Lazar Barclays. first to Andrew

Andrew Lazar

expect really quarter momentum similar to the in to as 'XX. of fourth going or the think prepared in something terms of performance acceleration reported expect company Jeff, sort like terms the how into expected fiscal an we trade in the saw of of you aside, build the lapping put If the from expense what in-market for we that more Would in remarks, looks you'd sort in the in seems we the in do which last XQ. from quarter results about terms year. XQ of right, and fourth you momentum what of fiscal mentioned consumption, benefit company mechanical, impact

Jeffrey Harmening

mechanical phasing would timing you, the in of I the is trade And with nature. agree Yes. more

Pet. underlying by of as quarter, as factors, the I broadly, our third in in you're think half kind into that. there'd that about particularly And encouraged competitiveness saw of in retail year, a results would which is, say I and we the be So America in external I -- North we of quarter role and the mean, saw thought we're said, performance, improvement we improvement back the level what performance. I the going we the play the said in More would X right

lapping the of that year. see third was pricing first benefit last doing that thought a in we'd The we're of We quarter. from seeing and benefit

of that that and in we'd The the said see and reduction from we're SNAP year And to there's probably third would second little lapping in April to benefits March on-shelf a ago, lap be a the starting suggest then which availability. evidence start to of little bit that and lapping is a benefit. we bit see

factors. seen results. third so the We've are in And those the out bit quarter first our little a X play

encouraged. are So we

terms moving and similar things third moving of of outside we But a environment. that be in quarter right, would out also issue -- the those look terms the I is say because hard the quarter. pieces, exactly it's that. how would would you play our in expectation phasing say quarter trade pieces of And are lot that would third of say of to and I pretty our it referenced, fourth we're mean, fourth that there external to And just inventory I like would kind mechanical but quarter have see in to we'll look in the like of have performance. the assuming movements about year-over-year terms sales that

Andrew Lazar

outperformance? What more sort sustainable. that Pet saw obviously, a in least really then didn't you this it. Got I I as significant to upside source it. all-channel Or drove guess we see do street Got ourselves you this Pet an of continuing And And the what you of sort from should on know organic at we XQ? sequentially like for sales of get number importantly, consumption of not expectations. based and was improve ahead had to if see quarter versus here? whether

Jeffrey Harmening

Well, on, work is about know particularly good to -- say that. shows is even movement than and And the were I quarter the Pet maybe pretty and what third results by We the Life areas mean, a good as expected. regard third channels, to little good. Yes. that well wet was which dry up still better certainly which things. do that growth on I of Protection is paced showed working Blue was and and we which it we're that have bit and Buffalo which our they're quarter what pet seen [indiscernible] we've an us equity the right specific feel we've better Formula, in we but emphasis in a improvement in business. improvement, also as as the business, improvement lot also with put to well, Wilderness tells that The

on of of and or the what -- take are track do get a get you to two back know that know to take what it challenges It's And the but to kind Wilderness, quarters. we to on not it's month we going back what to know a where want. couple we going

have that encouraged a don't of on that good on that some thing time even if I So it's the victory way would is in the have things them ahead myself. going drove think we're I'm the not we declare to pet we increases work done, to. the note wanted profitability we seen other to get I quarter. pet,

of that out. And pet. third in are pandemic lot process the in and that costs we've you the get quite levels of doing And Our a productivity see had in results that in we're disruption the during to we the had high quarter.

our that. pleased from really feet we're kind getting executional under so And us an of by standpoint. We're

here So on early in some from think happen out probably it's to third see I say shoots little pet. going we by encouraged the what's of do but while I'm to a kind quarter, green bit

Operator

Goldman next JPMorgan. move to at We'll Ken

Kenneth Goldman

too with no that's, believe I even again, have benign. the benign it's I mean time, of longer-term year, quantify too at comparisons you understanding, wanted in or though were assume, relatively really numbers said fiscal year, you're that easy asking the still does in you understanding, just this a algo? CAGNY, at context relatively the first you soon to at market. your I even next what to hopefully hoping it's early, in And I'm something for because clarify pet, performing discuss With was well And and

help on I Inflation a could you you'll would a to year of that year. but puts potential lot for algo. positives a disinflationary reel lapping HMM position little bit You of more savings and trying X% somewhat be into And should kind have better specific I'm previously, of of about it from better say maybe of or SNAP. get yet be than takes better to sense just how a ready off a month think of to hope to you're lack be for going to to. in get you next about said you're CAGNY above the weren't later next word, some

Jeffrey Harmening

hope when would be, things pleased off I to Well, year. you term, so we now. inflation, to it we lot a right, still hat. been we regard long I environment, CAGNY, at what of It you're environment. And say It's hear to a guess Ken, digits X% the kind -- last benign reeled said double with regard see of to an with X% And of was couple to things, X%. inflationary it's hopefully, yes,

extent give with seen we'll long-term to a good look That's And the certainly productivity. the year, we've good so environment at a combined exactly next benign that supply But what we the chain environment, hopefully, as start. we see have we're guidance looks can we direction headed June more on don't inflationary in in disruptions and like. a

early little out we will the call. of quarter the is would even on-shelf expected. think competitors, still largely haven't after things private us, we external then to we label how some pricing and played some I I a But month the of the lap of out lap and these quarter played of And availability are I which for and say expected factors we smaller in question say, going exactly lapping play our as are bit, yet, really SNAP as as a as answered to fourth too benefits CAGNY, we those out third

at And F'XX to of other so is good. comment although in it may of there to and be out line expect performance productivity reiterate about to months. this completely couple what unsatisfactory on time I'm still inflation not lot the we'll but inflation more seen going slowing, a know a top is than We've

Kenneth Goldman

quick in, And unsatisfied follow-up. going that knew but partially I'd helpful. I was then be

fair depends it bit say than so much a those of on is U.S. don't react. the improvements a is what these your you in the that? mentioned you've You reductions reductions just number lapped. -- show states? of but to I it sense been states, on trying how seen because just talking again, I'm already complicated get more of mean just would consumers in mentioned don't decent that know of little you this Or a put a chunk to and SNAP and to you're In that a but have if data spot I about that little now, coming macro

Jeffrey Harmening

states yes, seen The yes your lapped we've where and a benefit -- yes the have benefits. first is in I'll the and explain. small short answer yes the Yes. the mean, answer to that, I SNAP is we

we have so seen And that.

kind One, there's a not it X think just play cliff I a couple it's it of a happens of event change. out will and to while take if that -- there's to important remember as and things.

is -- a some The there I it's benefit a it's benefit other just mean is benefit. but huge that, not that huge. is not not

factors. you And have we're mean, soon, some answer other said, pretty lapping of there's The I on-shelf pricing as because and availability course. changes. complicating we'll is, yes, the

little so make lapped in So than that is, we're we've but the there's the a lot answer far. a in perfect benefit noisier little of factors the places environment seeing short a bit correlation of SNAP where a just bit it

Operator

next BNP at Paribas. We'll to Gumport move Max

Max Andrew Gumport

pet looks on quarter it are action fruit. for you segment starting First discussed the Pet, last like bear to plan the

what for the your or about food in be success I of think bag more seeing double-digit So be they you to over on of might XX-pound retail. could growth could XQ not with in signs quarters inflected talk doing specifically, minus pet pet from value-oriented you early XQ. any multipacks inform the Wilderness decline wet hoping I and these coming may was view you how a may in

Jeffrey Harmening

our would to way to growth I or seen weighted but we all I'm sure on got importantly, line growth price side, back wet pet points it's seen improvements wet it's Yes, business the that seen And be we've all the not. would but say improvements, where have back not -- improvements. food whether the food the the thought in certainly pet we we beneficial. we in in mean it's I what back certainly with have places in

So that's good.

them everywhere gotten haven't yet. We back

So thought I would a that's the itself that the the But a process fourth that are and that actions think took, that we will work out we we we still in in are that having thought. benefit encouraged quarter. have benefit play

to mean get Wilderness, so to XX-pound kind to messages is to relates And Wilderness? that to -- But that. consumers. something back just do, -- to need that with just so that there. feels you're barely, say I guess on I it's like, resonate be need going bags I Wilderness more we be than think advertising would of of complicated I good. How we I

We have important. working will that. that be some on That on now. ideas We're

the specialty want we and a pet particular, challenge. channel, to they has Wilderness with where with had work with in working them. to want then work us And And

do bring SKUs But some to positive. work there's need have then back. some we that's we channel. so to in more And And that that

to have wish we by But bit So out little what in fact as but complicated and have take on taken then diagnosed actions we played are have we that way encouraged more largely getting and going that think be it's wet that the the we a thought. the little than food bit XX-pound as I simple were bags I longer. a Wilderness pet

Jeff Siemon

remarks. on the mentioned you sales prepared -- that some and you Max, look add true. we as subline. up this wet on That inventory I'll There's is up a Jeff our the They're at point was include Siemon. didn't individual differences just that food modestly. net were in

quarter. do to moving So but on still some -- that, standpoint, all They're they're But the but you still -- down. food sales are have they were that they're the to them retail right from to [indiscernible]. up in sales we a better were work net slightly wet get way

Max Andrew Gumport

Yes.

one safe then looking and would slide actively follow-up I in clean continued just saw it's emphasis think portfolio deck. sheet I at the think on to assume I balance acquisitions. reshaping, the that And you're be, given the

think geographies. food that it curious you're pet might I'm suggest view some your businesses I in snacking That global cream, of you and and past focused ice that play industry just said, recent of also the would commentary categories one on given your news, is X core platforms. especially knowing how

Jeffrey Harmening

the appreciate done haven't shaping. changed to pleased we really Yes, approach and we portfolio with I portfolio shaping, have the change Sure. We're far. XX% we've so made question. on what our

to We more get we of we've levels terms that while. make acquisitions. back a the growth also disciplined over And in been just that important only that sense the and And looking and note a years. have to looking very growth when remain for to to to we'll things we're it been know that the for. And there's be for at to looking do, not both to divestiture do acquisitions going But chase goal. it's over shareholders, we we're disciplined comes

the certainly, looking a Pet think And is I places and accretive that like. that will we place be we're growth at

categories some meal like well. mentioned as we snacks, You there

would talk I where in And not feel about to so there categories to ice go, and we've number leave advantages. deals. of particular in we're I'm M&A or be going that some and to cream a got either the competitors in we we categories competitive I'll announcements that where tangential recent like are specifically. could talk about don't our geographies and places

growing we Europe. really is great Häagen-Dazs in a mean I it's Asia. It's It's premium a it's business. -- cream ice super And and brand. our nicely. like good brand We in good

And it's so of X we X -- platforms. our global

about the growth particularly, is playing like premium Häagen-Dazs. good and category And obviously that feel in like very we spaces brand. that but super brand, we we So a is

Operator

to at Wells we'll Chris Carey Next, go Fargo.

Christopher Carey

Were to question. the you another actual to to mentioned organic So look or in consumption just and quarter? in you X should question similar the Jeff, fiscal QX. follow-up revenues that response Andrew's QX growth sales referring

Jeffrey Harmening

up growth as probably phasing, at because of on a suggested. consumption, I which as not we piece, it would and X-point but of was referring consumption timing to there report. accounting what in the the be really nature, others, expense to What most the the some will of was is look we it important it's that be headwind I referring of about kind important not the mechanical is an Andrew catch our because was

So if sales what was referring I to was the out, you will.

Christopher Carey

Yes. Perfect.

expected. volume Kofi, inventory Okay. year that some relative to pricing, quarter a the key just the positives? That's better a on Can maybe just strong positive of given margins, expand down, clearly, Gross light work inflation, what -- offset than bit Street in of I some namely were growth. you productivity. on the I think think, bit thought. factors easing ago, expectations, year deleverage those the relative And I were sales to ago

and items QX into bit a your more and potentially durable medium those they context on any term. how be Just might

Kofi Bruce

benefit to a to. recurring. you're margin, take probably on down working appreciate I the would to would a while on was most think the I add got And cash was you plot that flow, absorption was, as the chain the is benefits that able XX-basis some to one just think supply and drivers. which we've our question. thing of key that the inventory headwind of perspective the The sure. levels additional I about And stabilization close I give only it inventory of helpful been be referring you've which Yes, side gap frankly, of think gross capital to point

Operator

Next Dickerson Rob with is Jefferies.

Robert Dickerson

Great.

a a guess, baking our, just know be in strength let's I might more snacks. kind bit kind within a calling I of and of So broader areas. there's out more question. other bit And and pressure, little this say, meals little in maybe

a of be all than pricing to any brands what the I'm of bit kind gone used just more let's this relative other broadly material general now seem shifts, and consumption, I'm through of kind of of consumers more phase, trying to that fairly have like seen just we kind types So right to kind like, shifts would any in kind little like you curious, say, the in we've speaking, category value proposition category of -- areas. of here just kind some your of to consider consuming of also positioning. they consider

Jeffrey Harmening

I'll question. the maybe I'll would back with in to of food place work different start my and shifts start bit the consumption we've little seen Yes, -- since your pandemic home. at let one I say of beginning is the way more me a

is home at pandemic. points consumption into couple going than higher food the was a so And it of

roughly to home. out served home Xx eat at XX% is that it it's And the eat value great in foodservice about expensive at is about less restaurant of at So food is because on and a average. for is such reason home than a to

that And have value way we great of so home than inflation, food challenges with the they the with rather felt deal source it they as and a when eat value Americans is the were part at of to comes obviously, that. out

actually as before the label biggest that the That's XX% Interestingly, is they categories category. one about shares of we're about label in, probably the private pandemic. same shift. private of were now In the where the are

when about XX fact, In the beverage they're points. XX from and down pandemic overall began food basis points and is

that comes time. seen few with our I'm years share last when a half categories categories, things over And value in over growth so shift our pleased specific the our it it the is actually hold comes of to to we big haven't most of to When one ability there. performance our

meals broad gains which our done we've And refrigerated in some has in like that baking business Pillsbury over -- dough, big quite so time. well And and based. seen so is

know. you had in at those year over is that. this really Both Nature of few And in I'm of shelf share getting years. label private about competitors in fruit as our we of We've over is recall. was time, look share Obviously, and consistently growing Valley things snacks. well course big But even with gained business good to now, our those but feel we've same we of because are it pleased The one up bars, say some struggles businesses the haven't the with businesses. market so as XX% a before we last on back one back can I had Pillsbury the

not induced of So recall a activity. it's kind

some had We've Nature innovation product Valley. good new in

Our Valley. marketing in is Nature working

shared we think I some that CAGNY. of at

one where we bit But where And have start. yogurt to feel of where momentum. We've now, too, we so that's protein struggled, we we're category nice struggled on there done well. Yoplait And had a getting have is area then out which it's right got an like little as a well. we off

we And haven't category category so broadly speaking, changes consumption. huge -- seen say would but by I in

Robert Dickerson

just from of China that's us Maybe All you and the right. and consumer bit then State give quick in seeing also in countries you're the kind quickly, called kind just of little enough. the just of both pressure And Fair Union, Brazil. of out a maybe prepared what remarks in the all.

Jeffrey Harmening

our the lockdown. In of ago, we a year the consumers China Chinese were our factor kind biggest sure. it's in dumplings, where biggest note, our important China, say I in is Wanchai to did -- business, think Yes, factor Ferry frozen that, on and in

lot a there's so at-home consumption. of And

So we're lapping that.

the of driver And And our in will. China, that's comparisons very, challenges very difficult. are biggest if the you so

where down of think have had bit is down it the the year. other over China in we Chinese feeling traffic the economy has probably -- The a before. driver store the that slowed is of past I been from that's the And a pinch consumer that little function though had

Brazil. we're the business see That's Ferry the been a commodity to or the from increases but to stabilize in here -- frozen Brazil, the two. so is bigger lapping And challenge. in -- They've the start now our Brazilian And year Brazilian actually we kind where price driver we're to dumplings. at ago. seen coming the And over our hope pricing the is, it's Wanchai start big quarter U.S., similar of huge point

up in into and And U.S. bit. Brazil comparisons we're are gone input ease so And here a head a that that kind costs of our we see in little we kind have our fourth quite Brazil the as as we is our now start lapping quarter in my bit hope to those

Operator

to We'll Moskow Cowen. TD move at Robert next

Jacob Aiken-Phillips

Rob. This Two is ones. Jacob Aiken-Phillips, for quick on

talked So XQ. I X% X% reduction timing a understand you But said the about you then. impact this inventory about year trade and headwinds in last lot XQ,

So Or did missing? you we're factors other ahead is XQ? some there in ship that

Jeffrey Harmening

not the year say. built answer that pretty to me the and let would third again the because ability. this didn't my avoid again, benign, And we it. it right, get best I if Yes, -- I'm year inventory that ask exactly I say But of to ago. a question quarter, I would was in trying had

if at look you retail, difference. -- our North X-point you a America Our see Nielsen data in

is of the of and of that balance measured fact due to faster than the inventory growth. unmeasured we're is Some only channels, it channels growing

position inventory good we of our as look fourth tough quarter. And out going is the to we in head what's it's the happen. at say to a So quarter, third as

the last inventory, You're right, worth we last of year, year. in points several fourth bled quarter inventory

customers, that you're I'm not that much like America this really we're feel whether but changes. mean I or retail we in year really not? whether don't you that's quarter inventory we it so to Pet. in a that's predict difficult with We have does good well, enough. third the inventory we our or is place sure. in too say may I to would end retail build going as answer think ask, North What have is, It's And The

we'll expecting we're modest be that any it is but think let the out. we -- extent fourth change, itself change there to quarter. in to a what the play And And so not would

Jacob Aiken-Phillips

any or XQ quarter? Or in one expecting you timing question. into to in but another expectations follow to the brands changes investing there got have you you're I the Yes, is XQ? are going the know -- last reduction it incentive how media so in And comp. of headwind your then, is, trade in

Kofi Bruce

No, one appreciate is worked strong mid-single-digit the question. things that change have the profit go want the I it didn't sure expect as in to I into that that in I of continued I I -- wouldn't pressure. a lost well better-than-expected invest in obviously really and performance to make we in think get would say quarter the at we QX top as to rate. behind some year our we're even we've driving a which seen line brands profitability

So from where we're is, I I continue pedal. foot the expect what material sit, I we'll on don't think a our hearing keep to change.

around somewhere out expectations. on line expect the our of us ahead I'd in So range year put the which of top media, comfortably will mid-single-digit our increase

Operator

next We'll Palmer take Evercore ISI. our from at David question

David Palmer

question that wondering, that segment be you'll see And are to a that you thinking approach you're about categories as in of closely example, thinking do bit the confidence? volume whether than and for sort need segment flat that a couple North that and to others. for money you of What retail fiscal should lot little can algo that business XXXX. what Obviously, be make be reviewing and will there's us looking a there give you more watching from Are how I'm on you about For that's think year-over-year? we looking a see 'XX. on America of segment. scanner and key about big you're those the high-margin for categories for you fiscal A that of some data

Jeffrey Harmening

say doing broadly would in that kind in giving the the guidance North volume what hope see the fiscal We retail still see tone we'd know, and of we'll speaking, 'XX, But categories. and to see we're happens snacks continued particularly without we'll in in broadly. on what about I'd I ask we're always and improvement. continued would question. it quarter of little -- North and what say, bit Mexican, category you America I fourth Pet retail trying cereal But looking big answer we'll the say I hopefully, And that's you look some quarter, would since in look course, I of guess the for improvements. a America mean, of about that we're to improvement too. that, hopefully, we there at saw in for. our be third to

to to a make going continue get we that, like we'd invest back to sure -- invest like get company So we're to of to sure a as position to to make grow. in back we'd we and do marketing to growth to

can marketing And a that productivity is strong hope of talked can we has so and hopefully, some reinvest productivity in into there year earlier where benign, about still the we because relatively middle is of as spending we've in good challenge, been this hopefully, so inflation but we still that obviously, P&L. we biggest the year grow continue to top line been the with the very business of The growth. back

now but for get in everybody growth. to important really it's as us and really company particular back a so to And

David Palmer

oriented? that talking is a headwind, And say. -- of Is there of I is then should that are What that early you family think were two? lack oriented or are there? more in seeing? last seeing certain Is SNAP you to mean something you about signs week meal categories are bit subsidy little a I seeing -- you you specific just it were the or SNAP -- what

Jeffrey Harmening

Yes.

The first important. because they're them I reiterate of points I about going think thing, but I'm said SNAP, important a couple to earlier

week think in The bit in that, it change. by come to not week think seen frankly, will but to I be step they're a the it's will benefits we -- It's see be of benefit but there going be have those first are roll modest we in is over going going a And not to from going and and, a may little there we're time. modest. to going a nature. mean, to I be benefit be

to other category going The the benefits do would category. guess, go by thing the I accrue not but and category by other I'm category I context add

And going to so not from one they're be the even next. category to

when And you're benefits look But do to are we easiest for categories that's it, our way are benefit that we than -- different tend some aggregate to yes, serving And from do others. them because SNAP so we'll certainly, categories it. than as portfolio, those at the as some families others. more

Operator

next Stanley. Kaufman We to go at will Pamela Morgan

Pamela Kaufman

thinking that growth that overall outlook? a much in abating of of just also headwinds may over of And about an improvement some availability, that quarters, you the be to in impacted have SNAP or that industry your growth how have the growth? be your Just much do estimate of the think you can tailwind on-shelf couple may how

Jeffrey Harmening

Yes.

I'm look, quarter. modest. the modest be a would point. The are that to -- end -- again, as will at going take pretty we to modest it pricing benefit I But this benefits and into kind We've see think, we going only start a I that of those one of modest. in there of say onetime moving I'm pretty April, Pam, But try of event. to And really pieces. over benefit so apologize not the be to but be the time our benefits I are at of two quantify SNAP not beginning first start many the I'll provide lapping to us. would availability well but things they're either unsatisfactory, would because there They're external won't that environment. got But are this also so will a on-shelf should May,

talk little these things because both will seen we a as kind we answer time. in what a of of think -- more give will hopefully, I out so about we play you we're of for June, seeing And to have period satisfactory we'll bit

Pamela Kaufman

And pretty And reduction should on we just levels forward? contributing What's that? notable year-on-year. expense, then corporate these going be extrapolating Understood. Okay. to

Kofi Bruce

performance top and our increase the are outstripping Pam, a last tracking pretty our and year, incentive-based comp quarter the line line comping to primary in was lower had last performance we we question. appreciate in where it The year. sizably driver as on accrual reduction obviously bottom top

expect So I this we'll specific a to see that the quarter. be to benefit

The related booked recall insurance to is quarter. the recovery, we other which item in

and specific expectation are of to base expect going those forward. be wouldn't the to quarter part So I the them

Operator

from Baumgartner question We'll go at to the Securities. next John Mizuho

John Baumgartner

to America to the where the in North consumer. still Jeff, I volumes come wanted back been retail, lagging. And have value-seeking areas

higher you're these or some pricing, it XX% the to consumers just Any waiting can pricing that the maybe in a frozen volumes doing and can that overshot macro. to mean, XXXX. can or bear grow to the enhance What in categories into are go, way taking Or you of category it's bit cereal, at what prices? at down left levels X/X look to consumers to pet, we independent as financially? is on consumers up just go market relative can You do snacks, changes pack the you into innovate now this levers other is more the for prices I point? either

Jeffrey Harmening

is input couple I significant Yes. The change thing I most in mentioned, what you say. the cost things in would A start that you inflation. is a important with of categories all would see

recipients fact, XX% than More we've been over the bit XX%, over inflation So I of past time. or in a think, quite X years it's of the so.

been So cost up the really and the inflation cause of prices has we going prices that received. input

it's are were that we line out they of our way category, As pre-pandemic the think don't brands category a The provide. important of in we value, we important, ways. to think consumers benefits look as where seek seek variety we're And most actually. I by

our provide, meals And time. easy, dinner so do and continue provides health. invest part in that convenient at and provides so Cheerios of is the And marketing continue to and we what value they that to will Pillsbury brands reason have heart quick, media

most the that's thing. important so And

and also buy it more But then consumers ways bulk. different look to when at want in value specifically, some to comes in pricing

boxes a to mass buy at ounce, of for they'd fruit store lowest be example, XX So packages snacks cereal, buying be they'll per a price to the going of where for a big stopping buy a store. discount store, feed soccer at a a store X a at time. may a at warehouse Otherwise, they'd off at be to Otherwise, pack they dollar the team. time

at And there's X a not feed trying variety consumer their to so in of in families ways, different looks Every including monolithic their home. for consumer. value families

So inflation. has we think that pricing don't ahead our of gotten

In where fact, the we And hasn't. are it good we feel about categories. in

had do quarter. is of do now, factors, the on these lap we've in And quarter, the is other that North seen our before. of as once And feel in the continued XX% we market in to what you think seen see things lap we good ability. about We categories I some onetime have which in grew third we lapped availability, that, what -- shelf we've And pricing. some we think we I availability, improvement improvement. in the share our snapping about from we on significant we'll of retail, a America quarter shelf third see hopefully,

Jeff Siemon

Okay.

think we have. I time that's all the

pass here, back Jeff to wrap I we Before I'll closing for it think comments. some

Jeffrey Harmening

Yes.

by everyone, thought ago And in driven some we our ability categories. I guess year continue execute and a is this in well. particularly results, time a pricing lot this saying our encouraged We're from lapping would thanks, start third improvement effectively that I competing competitiveness for of we would. morning. and we're to by our the by quarter So to well,

have innovated We well.

grown distribution. have We

We -- executing done well. we're our plan have

the saw look expenses. magnitude in as quarter are -- expense really we gain over But with expect of we we our that about in on quarter. us of fourth couple now continue would coming timing we'll out. And to speaking, quarter, to be of lapping to as sales momentum And we'll we disciplined is in as plays line to we this think that see goal talked benefits the to it months, the some well. number what out serve expect months. you third of P&L. lap well clear in June We'll availability the of some regain come the -- our we middle fiscal mean, combination kind I a are we the the in same be and broadly our there very are coming factors issues As some top those certainly 'XX that some There third of SNAP a as in the able and benefit of of to timing play with including will of what picture shelf how factors

Jeff Siemon

Great.

Feel questions if the Have day. you've it throughout morning. So follow-up time there. good everyone, reach we'll the for Thanks, out a wrap free to got this day, everyone. Thanks.

Operator

Thank And you for your this concludes today's participation. conference call.

disconnect. You may now

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.