General Mills Inc. (NYSE: GIS), the maker of Cheerios cereal and Betty Crocker cake mixes, reported on June 30 sales declines in both its fourth quarter and full fiscal year, ended May 30, 2021.
Fourth-Quarter Highlights
Net sales declined 10% to $4.5 billion and organic net sales were down 6%, reflecting the comparison against the surge in at-home food demand at the outset of the pandemic in the prior year.
Operating profit of $548 million was down 34%; constant currency adjusted operating profit was down 18%.
Diluted earnings per share of $0.68 declined 33%; adjusted diluted EPS of $0.91 were down 19% in constant currency.
Full-Year Highlights
Net sales of $18.1 billion increased 3% from the prior year; organic net sales¹ were up 4%.
Operating profit increased 6% to $3.1 billion; constant currency adjusted operating profit was up 2%.
Diluted EPS of $3.78 were up 6%; adjusted diluted EPS of $3.79 increased 4% in constant currency.
The company resumed dividend growth and share repurchase activity; total cash returned to shareholders increased 29% to $1.5 billion.
CEO Comments
“I’m pleased with the results the General Mills team delivered in fiscal 2021 under difficult circumstances,” said General Mills chairman and chief executive Officer Jeff Harmening.
“We competed effectively, generated strong top- and bottom-line growth, and further improved our balance sheet, allowing us to resume dividend growth and share repurchases," he continued. "In addition, we advanced our Accelerate strategy by investing in our brands, strengthening our capabilities, building on our leading position as a force for good, and taking significant steps to reshape our portfolio and our organization for future growth. We enter fiscal 2022 ready to compete and win in a highly dynamic consumer environment."
General Mills' Accelerate program focuses on four pillars to create competitive advantages: boldly building brands, relentlessly innovating, unleashing scale and being a force 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, including the acquisition of Tyson Foods’ pet treats business and the proposed divestiture of its European Yoplait operations, to further enhance its growth profile.
Click here to see General Mills' full news release.
