General Mills Q4 net sales declined to $3.81 billion
Staff Writer |
General Mills reported results for the fourth quarter and full fiscal year ended May 28, 2017.
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Reported net sales declined 3 percent to $3.81 billion. Organic net sales also declined 3 percent, primarily reflecting volume reductions in the North America Retail and Europe & Australia segments, which were partially offset by benefits from positive net price realization and mix.
Gross margin decreased 40 basis points to 34.7 percent of net sales, reflecting unfavorable commodity mark-to-market effects offsetting benefits from cost-savings initiatives.
Adjusted gross margin, which excludes certain items affecting comparability, increased 70 basis points to 35.1 percent, driven by cost-savings efforts more than offsetting the impact of volume deleverage and modest input cost inflation.
Operating profit totaled $609 million, up 14 percent from last year due to a year-ago loss on the Venezuela and Argentina foodservice business divestitures, as well as lower selling, general, and administrative (SG&A) expenses this year.
Operating profit margin of 16.0 percent increased 250 basis points. Adjusted operating profit margin increased 220 basis points to 16.8 percent, primarily reflecting higher adjusted gross margins, benefits from cost-savings initiatives, and a 17 percent decline in advertising and media expense.
Total segment operating profit of $673 million was up 4 percent in constant currency.
Net earnings attributable to General Mills totaled $409 million. Diluted EPS of $0.69 increased 11 percent, driven by higher net earnings and 4 percent fewer average diluted shares outstanding.
Adjusted diluted EPS, which excludes certain items affecting comparability of results, totaled $0.73 in the fourth quarter, up 11 percent from the prior year. Constant-currency adjusted diluted EPS increased 14 percent
Full year results summary
Reported net sales declined 6 percent to $15.62 billion and organic net sales declined 4 percent.
Gross margin increased 40 basis points to 35.6 percent of net sales. Adjusted gross margin increased 50 basis points to 36.1 percent.
Operating profit totaled $2.57 billion, down 5 percent from the prior year. Operating profit margin of 16.4 percent was up 10 basis points