General Mills Inc Q4 2022 Earnings Call - Question And Answer Session Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Cody T. Ross - UBS Investment Bank, Research Division - Analyst : I just want to dig a little into pet here because the pet margin continues to slide further driven by inflation and supply chain disruptions that you called out. Did this catch you by surprise during the quarter? And when do you anticipate the rate of margin declines to moderate? And then I have a follow-up.

Question: Cody T. Ross - UBS Investment Bank, Research Division - Analyst : Got you. And I just want to follow up a little bit about gross margin and some of the stranded costs you expect. So if you combine the low double-digit price/mix with the HMM savings, it looks like you should fully cover the inflation you're going to endure next year. You'll also be lapping the supply chain challenges in the second half next year. Is it fair to say right now that gross margin could actually increase next year? And if not, is that because of stranded costs? And if so, can you just kind of give us any color as how much stranded costs you expect?

Question: Thomas Hinsdale Palmer - JPMorgan Chase & Co, Research Division - Analyst : It's Tom Palmer on for Ken. I wanted to ask on elasticity. So guidance assumes elasticity increases but remains below historic levels. I just want to make sure I understand this. Are you assuming elasticity returns to more normal levels at some point over the year or that some degree of below-average elasticity persists throughout the year? And why you have that view? And what do you consider to be normal elasticity?

Question: Thomas Hinsdale Palmer - JPMorgan Chase & Co, Research Division - Analyst : Okay. And then just on shipment timing, I think a quarter ago, you talked about how some of that undershipment in North America would likely be a fiscal '23 event. At least looking at Nielsen, seems to be a bit of timing benefit in the fourth quarter. Is there more to come as we think about 2023?