General Mills Reports Fiscal 2015 First Quarter Results

Sept. 17, 2014

MINNEAPOLIS, Sept. 17, 2014 /PRNewswire/ -- General Mills (NYSE: GIS) today reported results for the first quarter of fiscal 2015, and provided an update on new cost-reduction initiatives designed to sharpen the company's efficiency and growth focus in 2015 and longer term. 

First Quarter Results Summary

  • Net sales declined 2 percent to $4.27 billion. On a constant-currency basis, net sales declined 1 percent.
  • Segment operating profit totaled $690 million, down 15 percent from year-ago results as reported and in constant currency
  • Diluted earnings per share (EPS) totaled 55 cents compared to 70 cents in last year's first quarter.
  • Adjusted diluted EPS totaled 61 cents, down 13 percent from 70 cents in last year's first quarter. Foreign currency translation did not have a material effect on adjusted diluted EPS.

General Mills Chairman and Chief Executive Officer Ken Powell said, "Back in June, we said our 2015 plans anticipated first-quarter EPS below year-ago levels.  Our results were driven by sales and profit declines in the U.S., where industry trends were weak in the quarter.  In addition, higher merchandising expense for our U.S. Retail businesses in this period depressed reported net sales and gross margin." 

U.S. Retail Segment Results

First-quarter net sales for General Mills' U.S. Retail segment totaled $2.44 billion, down 5 percent from the prior year.  Price realization and mix subtracted 3 points of net sales growth, primarily reflecting higher merchandising expense.  Pound volume was 2 percent below year-ago levels.  The Snacks, Yoplait and Small Planet Foods divisions achieved net sales gains in the quarter.  Advertising and media expense essentially matched year-ago levels.  Segment operating profit totaled $457 million compared to $612 million a year ago, reflecting the unfavorable price realization, mix, and lower volume.

Convenience Stores and Foodservice Segment Results

First-quarter net sales for the Convenience Stores and Foodservice segment totaled $473 million, up 1 percent from year-ago results.  Pound volume subtracted 1 point of net sales growth, while price realization and mix contributed 2 points of growth.  Yogurt, frozen breakfast, and snacks led sales performance in the quarter.  Segment operating profit grew 18 percent to $87 million. Full report.

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General Mills Inc.

May 6, 2013
General Mills is a leading global manufacturer and marketer of consumer foods products, with annual worldwide net sales of $14.9 billion. It has more than 100 U.S. consumer brands...