General Mills reported results for the fourth quarter and full fiscal year ended May 31, 2015. Q4 net sales of $4.3 billion essentially matched year-ago levels.
Article continues below
Pound volume contributed 3 points of net sales growth, including incremental contributions from the Annie's organic foods business acquired in October 2014 and an extra week in this year's period.
Net price realization and mix also contributed 3 points of growth. These factors were offset by a 6 point reduction in net sales from foreign currency exchange effects. On a constant-currency basis, net sales increased 6 percent.
Adjusted gross margin, which excludes mark-to-market effects and certain other items affecting comparability, increased 70 basis points due to net price realization (please see Note 10 below for reconciliation of this non-GAAP measure). Selling, general, and administrative expenses declined due to a 6 percent decrease in advertising and media expense, and savings from restructuring actions).
Total segment operating profit increased 9 percent to $800 million. The company recorded an intangible asset impairment charge of $260 million, a $79 million charge related to the repatriation of foreign earnings, and restructuring and project-related charges totaling $35 million pretax.
Net earnings attributable to General Mills totaled $187 million and diluted EPS totaled 30 cents. Adjusted diluted EPS, which excludes certain items affecting comparability, totaled 75 cents for the fourth quarter, up 12 percent from 67 cents a year ago.
On a constant-currency basis, fourth-quarter adjusted diluted EPS increased 18 percent.
Fiscal 2015 net sales decreased 2 percent to $17.6 billion. Pound volume reduced net sales growth by 1 percent, including incremental contribution from the extra week. Net price realization and mix contributed 2 points of net sales growth. This was offset by a 3 point reduction in net sales growth from foreign currency exchange effects.
On a constant-currency basis, net sales increased 1 percent. Adjusted gross margin declined 70 basis points, reflecting volume deleverage.
Selling, general, and administrative expenses decreased 4 percent due to a 5 percent decrease in advertising and media expense, along with savings from restructuring actions. Total segment operating profit declined 4 percent to $3.0 billion.
Restructuring, impairment, and other exit costs, along with project-related costs recorded in cost of sales, totaled $617 million. Fiscal 2015 net earnings attributable to General Mills totaled $1.2 billion and diluted EPS totaled $1.97.
Adjusted diluted EPS totaled $2.86 in fiscal 2015, up 1 percent from $2.82 earned last year. On a constant-currency basis, adjusted diluted EPS increased 4 percent. ■