Comes From Eating Wheaties

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Friday, 02 July 2010 20:34

Minneapolis, Minnesota, July 2010— General Mills has reported strong results for the fourth quarter and full fiscal year ended May 30, 2010. On the last business day of the fiscal year, General Mills common stock split 2 for 1. All per-share data in this release have been adjusted to reflect the stock split. • Fiscal 2010 included 52 weeks. The previous year included 53 weeks, with the extra week falling in the fourth quarter. • Net sales for fiscal 2010 grew 1 percent. • Segment operating profit rose 8 percent. • Diluted earnings per share (EPS) increased 18 percent to $2.24. • Excluding certain items affecting comparability, diluted earnings per share grew 16 percent to $2.30, in line with the consensus of analyst estimates. Chairman and Chief Executive Officer Ken Powell said, “This was an exceptional year for our company. We achieved broad-based sales growth and expanded gross margin, which allowed us to invest at above-planned levels in media support and selling capabilities. And our 16 percent EPS increase significantly exceeded the high single-digit rate we target in our long-term growth model.” Fiscal 2010 net sales for General Mills’ U.S. Retail operations grew 3 percent to $10.3 billion. Pound volume contributed 1 point of net sales growth including the impact of one less week, which subtracted 2 points of growth. Price and mix contributed 2 points of net sales growth. Segment operating profit increased 8 percent to $2.4 billion, including a 22 percent increase in media spending. Net sales for Big G cereals rose 5 percent with good performance from core brands, and strong introductory sales from Chocolate Cheerios and Wheaties Fuel. Snacks sales grew 6 percent led by Fiber One bars, Nature Valley bars and various fruit snacks. Yoplait net sales grew 2 percent including good contributions from new Yoplait Delights yogurt parfaits and Yoplait Greek yogurt. Net sales for the Pillsbury division grew 1 percent led by Totino’s pizza and hot snacks, and Pillsbury Toaster Strudel pastries. Meals division net sales grew 1 percent, as gains by Green Giant frozen vegetables, Old El Paso Mexican foods, and various convenient dinner items offset sales declines in ready-to-serve soup. Baking Products division net sales matched year-ago levels overall, but Betty Crocker brownies, cookie mixes and new gluten-free dessert mixes recorded good growth. For the company’s Small Planet Foods organic and natural product lines, net sales grew 3 percent. “We expect fiscal 2011 to be another year of quality growth for General Mills,” said Powell. The company’s plans for 2011 assume 4 to 5 percent inflation in supply-chain costs. Noncash pension and post-retirement expense will be higher in 2011, reflecting a 165 basis point decrease in the discount rate year-over-year. Net sales are expected to grow at a low single-digit rate. Segment operating profits are forecast to grow faster than sales, increasing at a mid single-digit rate. Earnings per share are expected to increase to approximately $2.46 to $2.48 before any effects of mark-to-market valuation. This EPS guidance represents growth of 7 to 8 percent from 2010 results excluding mark-to-market effects and the tax charge related to health care legislation. From flour to submarines, from toys to restaurants, General Mills has been delivering innovation to make a difference in people's lives since 1866. While the company is known for breakthroughs in food technology, its rich history of innovation goes beyond the grocery aisle to include philanthropic initiatives, the creation of popular advertising icons, and even the development of ALVIN, a deep sea submarine. For more, visit www.generalmills.com. SOURCE: General Mills < Prev   Next >