16 July 2024
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General Mills: Reports Fiscal 2024 Fourth-Quarter Results

Minneapolis / MN. (gm) General Mills Inc. reported results for the fourth quarter and fiscal year ended May 26, 2024. «We delivered on our updated guidance in fiscal 2024 by pivoting our plans and enhancing our efficiency in response to a more challenging operating environment,» said General Mills Chairman and Chief Executive Officer Jeff Harmening. «We drove improved volume performance in the second half of the year and generated industry-leading levels of Holistic Margin Management cost savings, allowing us to protect our brand investment while still delivering on our profit and cash commitments.

Harmening: «As we move into fiscal 2025, our top priority is to accelerate our organic net sales growth, and specifically our volume growth, by delivering remarkable experiences across our portfolio of leading brands. We plan to drive another year of strong HMM cost savings, allowing us to reinvest in exciting growth ideas that meet evolving consumer needs. I want to thank our entire General Mills team for their resilience and engagement in fiscal 2024, and I’m confident we’re ready to capitalize on new opportunities, advance our Accelerate strategy, and deliver for our consumers and our shareholders in the year ahead.»

Guided by its purpose to make food the world loves, General Mills is executing its Accelerate strategy to drive sustainable, profitable growth and top-tier shareholder returns over the long term. The strategy focuses on four pillars to create competitive advantages and win: boldly building brands, relentlessly innovating, unleashing scale, and standing for good. The company is prioritizing its core markets, global platforms, and local gem brands that have the best prospects for profitable growth and is committed to reshaping its portfolio with strategic acquisitions and divestitures to further enhance its growth profile.

Fourth Quarter Results Summary

  • Net sales were down 6 percent to USD 4.7 billion, reflecting unfavorable net price realization and mix and lower pound volume. Results included a 3-point headwind from a comparison against favorable trade expense timing in the prior year, which impacted net price realization and mix. Organic net sales were down 6 percent and slowed from the third-quarter trend, driven by the trade expense timing comparison, a reduction in retailer inventory, and a headwind in International segment results. Aggregate in-market retail sales trends were more consistent between the third and fourth quarters.
  • Gross margin increased 140 basis points to 35.8 percent of net sales, driven by Holistic Margin Management (HMM) cost savings, favorable mark-to-market effects, and lower other supply chain costs, partially offset by input cost inflation, unfavorable net price realization and mix, and supply chain deleverage. Adjusted gross margin was down 10 basis points to 34.9 percent of net sales.
  • Operating profit of USD 779 million was down 5 percent, driven primarily by intangible asset impairments and lower gross profit dollars, partially offset by lower selling, general, and administrative (SG+A) expenses and lower restructuring charges. Operating profit margin of 16.5 percent was up 20 basis points. Adjusted operating profit of USD 800 million was down 10 percent in constant currency, driven primarily by lower adjusted gross profit dollars, partially offset by lower SG+A expenses. Adjusted operating profit margin was down 70 basis points to 17.0 percent.
  • Net earnings attributable to General Mills of USD 558 million were down 9 percent. Diluted EPS was down 5 percent to USD 0.98, driven primarily by lower operating profit, higher net interest expense, and a higher effective tax rate, partially offset by lower net shares outstanding. Adjusted diluted EPS of USD 1.01 was down 10 percent in constant currency, driven primarily by lower adjusted operating profit, higher net interest expense, and a higher adjusted effective tax rate, partially offset by lower net shares outstanding.

Full Year Results Summary

  • Net sales were down 1 percent to USD 19.9 billion, with lower pound volume partially offset by favorable net price realization and mix. Organic net sales were 1 percent below year-ago results that grew double digits; organic net sales were up 4 percent on a 2-year compound growth basis.
  • Gross margin was up 230 basis points to 34.9 percent of net sales, driven by HMM cost savings, favorable mark-to-market effects, and favorable net price realization and mix, partially offset by input cost inflation, higher other supply chain costs, and supply chain deleverage. Adjusted gross margin was up 60 basis points to 34.8 percent of net sales, driven by HMM cost savings and favorable net price realization and mix, partially offset by input cost inflation, higher other supply chain costs, and supply chain deleverage.
  • Operating profit of USD 3.4 billion essentially matched year-ago results, with net gains on divestitures in the prior year and intangible asset impairment charges offset by higher gross profit dollars and lower compensation and benefits expenses. Operating profit margin of 17.3 percent was up 20 basis points. Adjusted operating profit of USD 3.6 billion increased 4 percent in constant currency, driven by lower compensation and benefits expenses and higher adjusted gross profit dollars, partially offset by higher media expenses. Adjusted operating profit margin was up 90 basis points to 18.1 percent.
  • Net earnings attributable to General Mills were down 4 percent to USD 2.5 billion. Diluted EPS of USD 4.31 essentially matched year-ago results, with lower net shares outstanding offset by higher net interest expense and lower benefit plan non-service income. Adjusted diluted EPS of USD 4.52 was up 6 percent in constant currency, driven primarily by higher adjusted operating profit and lower net shares outstanding, partially offset by higher net interest expense and lower benefit plan non-service income.

For additional information please read the company’s PDF file below (188 KB):

20240627-GENERALMILLS-Q42024.


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