General Mills reports solid start to fiscal year [Infographic]
Today General Mills reported results for the first quarter of fiscal 2014. The company is off to a solid start this fiscal year, and reaffirmed that it’s on track to achieve key financial targets for the full fiscal year.
Noting a healthy mix of gains from established brands, strong introductory shipments for new products, and contributions from new businesses added to our portfolio, the company reported that net sales rose 8 percent to $4.37 billion in the first quarter.
The full financials are outlined in the press release issued this morning and available on GeneralMills.com.
Here’s a topline summary of General Mills’ Fiscal 2014 First-Quarter Results:
-Net sales rose 8 percent to $4.37 billion, with new businesses contributing five percentage points of the growth
-Segment operating profit grew 6 percent to $812 million, including a 7 percent increase in advertising and media investment
-Net earnings attributable to General Mills totaled $459 million dollars
-Diluted Earnings Per Share (EPS) totaled $0.70, as reported. Adjusted diluted EPS was $0.70.
-First-quarter net sales for General Mills’ U.S. Retail segment increased 4 percent to $2.58 billion, led by the snacks, natural and organic, baking and cereal businesses. General Mills’ International businesses grew 22 percent to reach $1.32 billion and, as expected, net sales for the Convenience Stores & Foodservice segment declined 1 percent as the segment continues to focus its product mix.
“We continue to be excited about our 2014 business plans, which call for sales and earnings growth consistent with our long-term model, along with strong cash returns to shareholders through dividend growth and share repurchase activity,” said Ken Powell, chairman and CEO of General Mills.
Also this morning, the company reaffirmed its full-year fiscal 2014 guidance of low single-digit growth in net sales, mid single-digit growth in segment operating profit and adjusted diluted EPS of $2.87 to $2.90.
Ken was joined by Don Mulligan, executive vice president and chief financial officer, and Jim Murphy, senior vice president and president of Big G cereal, to discuss the results on a webcast presentation (available later today) to analysts this morning.
Several standouts from our businesses around the world highlighted during the webcast, include:
-Jim shared that General Mills’ U.S. cereal business has led the category’s growth in recent years – we’ve added a full point of market share over the last five years. Learn more about our cereal business and Jim’s presentation in “Big G Bullish on Cereal Category,” posted to our blog today.
-Net sales in the first quarter for our U.S. Retail Snacks division were up 10 percent.
-In Canada, sales in constant currency increased 21 percent, led by incremental contributions from Yoplait.
-We continue to see strong growth in Greater China, where first-quarter sales in constant currency grew at a strong double-digit rate, led by Haagen-Dazs and Wanchai Ferry frozen dim sum items.
-In Latin America, our sales in constant-currency increased nearly 200 percent in the first quarter – this includes strong contributions from Yoki and double-digit growth on our base business.
For the full webcast and presentation slides from today’s earnings announcement, including the highlights on how each of General Mills’ business segments performed, visit the Investor section of GeneralMills.com.
Editor’s Note: This post contains non-GAAP financial information and forward looking statements regarding future results. Please see our press release dated Sept. 18, 2013 for a reconciliation of these non-GAAP measures and for risk factors that could affect the results anticipated in these forward looking statements.