General Mills Reports 7 Percent Net Sales Increase In Fiscal 2013

General Mills reported results for the fourth quarter and full fiscal year ended May 26, 2013. Contributions from new businesses in fiscal 2013 primarily reflect results for Yoki Alimentos in Brazil and Yoplait International.

Fiscal 2013 net sales increased 7 percent to $17.8 billion. Pound volume contributed 9 points of net sales growth, primarily reflecting the addition of new businesses. Net price realization and mix reduced net sales growth by 1 percentage point. Foreign currency exchange also reduced net sales growth by 1 point. Gross margin excluding market-to-market effects was below prior-year levels, reflecting changes in business mix. Advertising and media expense of $895 million was 2 percent below strong year-ago levels. Total segment operating profit increased 6 percent to $3.2 billion. Earnings attributable to General Mills totaled $1.9 billion and diluted earnings per share (EPS) totaled $2.79. Adjusted diluted EPS totaled $2.69 compared to $2.56 a year ago.

Products making the strongest contributions to U.S. Retail segment net sales growth in 2013 included new items such as Honey Nut Cheerios Medley Crunch cereal, Yoplait Greek 100 calorie yogurt and Nature Valley Protein Bars, along with established brands including Lucky Charms cereal, Progresso ready-to-serve soups, Fiber One snack bars, Totino's frozen snacks, and Pillsbury refrigerated baked goods. For the international segment, double-digit growth by Haagen Dazs ice cream and Wanchai Ferry frozen dim sum in China, and the newly acquired Yoki and Kitano brands in Brazil, led the overall sales increase. In the Bakeries and Foodservice segment, items including Chex Mix snack varieties, Pillsbury heat-and-serve breakfast items, and Yoplait Parfait Pro Greek yogurt made strong contributions to 2013 sales.

General Mills Chairman and Chief Executive Officer Ken Powell said, in a prepared statement, "Our 2013 results reflect good growth from established product lines and important contributions from new businesses added during the year. Each of our three operating segments posted profit growth. Our cash flow from operating activities rose 22 percent, and we returned nearly $1.9 billion in cash to shareholders through dividends and share repurchase activity. In addition, we exited the year with momentum that enabled us to finish 2013 a bit better than our original estimates."

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