Kraft Foods Group Inc (KRFT), Kellogg Company (K), General Mills, Inc. (GIS): 3 Companies Set For Big Profits

Kellogg Company (NYSE:K) is also seeking to improve its balance sheet. Management plans to use the remaining funds for debt reduction. Therefore, it has refinanced long-term debt of $9 billion at low rates.

I think with the recent moves and growth in emerging markets it is creating strong footprints for future growth. Kellogg Company (NYSE:K) is well set to reach 8% growth in 2013 with earnings per share growth of 5%-7%. With this strong top and bottom line growth, Kellogg is well set to generate rising returns for investors.

How General Mills is set for big profits

General Mills, Inc. (NYSE:GIS) is a manufacturer and marketer of branded consumer foods. At present, General Mills offers a quarterly dividend of $0.33 per share. Year to date, the stock has grown by nearly 26%. In the last year alone, it has returned $1.9 billion in cash to shareholders through dividends and its share repurchase program.

Over the years, General Mills, Inc. (NYSE:GIS) has shown a solid business strategy, which results in a strong financial situation. During fiscal 2013, its sales went up by 7% to $17.8 billion. New businesses contributed 6 points of net sales growth. General Mills operates under three business segments. All three segments are generating solid growth year after year.

I believe its dividend is safe, as this company has been generating massive cash flows. At the end of the recent year, its cash flows increased by 22%. Its free cash flows are enough to pay dividends. During fiscal 2013, General Mills, Inc. (NYSE:GIS) has generated free cash flows of $2.3 billion when dividend payments stand at only $0.86 billion.

General Mills, Inc. (NYSE:GIS) is set for big profits as its retail and international segments are growing at a high pace. Its growth in emerging markets is also amazing. Its Snacks, Small Planet Foods, Baking Products, and Meals divisions led U.S. retail and international sales growth for the year. Additionally, this company carries low debt to equity, while its current ratios are high. This demonstrates a healthy balance sheet to support returns for investors.

In conclusion

This industry has a lot of potential. Many companies operating in this industry are improving their financials with the improving economy. Companies in this industry are working to capture new emerging markets with cost saving initiatives to boost profits. All three companies I discussed in this piece are on track to generate substantial profits.

siraj sarwar has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article 3 Companies Set For Big Profits originally appeared on Fool.com and is written by siraj sarwar.

siraj is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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