General Mills has reported a 3% year-on-year growth in net sales to $18.1 billion (€15.3 billion) in its financial year ended 30 May 2021.
Organic net sales increased 4%, reflecting strong execution and broad-based market share gains amid high demand for 'at-home food due to the pandemic, the Cheerios maker added.
The company's operating profit grew 6% to $3.1 billion (€2.6 billion) during the financial year, while the operating profit margin increased 50 basis points to 17.3%.
General Mills chairman and chief executive officer, Jeff Harmening, commented, "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.
"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 organisation for future growth."
In February of this year, General Mills said it would focus on eight key markets and five global product categories, including ice cream, cereal and Mexican meals, as the Betty Crocker cake mixes maker seeks to reach its long-term goal of up to 3% growth.
Divisional Performance
The North America Retail segment saw net sales growth of 2% during the financial year to $11.0 billion. On a two-year compound growth basis, annual organic net sales were up 5%.
Net sales in the pet division amounted to $1.73 billion, up 2% year on year.
The BLUE brand saw double-digit growth in retail sales and gained market share during the financial year.
Net sales in convenience stores and foodservice declined 4% to $1.74 billion, reflecting reduced demand for away-from-home food.
Regional Performance
The company's net sales in Europe and Australia grew 8% to $1.98 billion, while operating profit amounted to $151 million, up 24% on a constant currency basis.
In Asia and Latin America, net sales increased 10% to $1.68 billion during the financial year.
Operating profit increased from $67 million to $86 million, primarily driven by higher net sales and favourable foreign currency exchange, partially offset by higher input costs.
Outlook
General Mills has forecast a 1-3% decline in organic net sales in fiscal 2022 as it expects at-home food demand to decline across most of its core markets over the year.
The company also expects away-from-home food demand to continue to recover in the new financial year.
As roughly 85% of the company's net sales represent the at-home food category, the company foresees a lower aggregate consumer demand than last year.
It has also estimated a 2–4% drop in constant-currency adjusted operating profit from the base of $3.2 billion reported in fiscal 2021.
Harmening added, "We enter fiscal 2022 ready to compete and win in a highly dynamic consumer environment. We're taking actions to address near-term cost pressures while remaining focused on the long-term growth opportunities we will capture through our Accelerate strategy."
