General Mills has recorded an 8% increase in net sales for Q4 fiscal 2022, as it continues its efforts to reshape its portfolio through divestitures and acquisitions.
General Mills’ revenue for the quarter stood at $4.9 billion. Organic net sales were up 13%, while the company’s operating profit increased by 85% to $1 billion.
In its fiscal 2022 full-year results, General Mills saw net sales growth of 5% to $19 billion, while organic net sales were up 6%. Meanwhile, the company’s full-year operating profit increased 11% to $3.5 billion, compared with the $3.1 billion figure recorded for the previous year.
The food giant says that steps taken to advance its portfolio reshaping efforts during fiscal 2022 are expected to increase the company’s top- and bottom-line growth profile over the long term. These include the sale of its yogurt business in Europe; the acquisition of the TNT Crust foodservice pizza crust business in North America; and the prospective divestiture of the Helper main meals and Suddenly Salad side dishes businesses in North America.
General Mills’ largest unit, North America Retail, witnessed its full-year net sales increase by 3% to $11.6 billion, driven by actions put in place in response to significant input cost inflation.
Meanwhile, full-year net sales for the firm’s North America Foodservice segment increased 24% to $1.8 billion, with organic net sales also up, by 24%.
For the full year, General Mills’ international net sales declined 9% to $3.3 billion, which included a 12-point headwind from the divestitures of the European yogurt and dough businesses.
General Mills chairman and CEO, Jeff Harmening, said: “Fiscal 2022 was another successful year for General Mills, marking the fourth consecutive year that we’ve delivered results that met or exceeded our targets for top- and bottom-line growth and cash generation”.
“I am proud of the way our team advanced our ‘Accelerate’ strategy this year by executing well on our core business while taking significant steps to reshape our portfolio. Though significant inflation and supply chain disruptions put pressure on our margins, we responded quickly to address those challenges and keep our brands on shelf for our customers and consumers.
“We plan to build on our strong momentum in fiscal 2023 by continuing to compete effectively, investing in our brands and capabilities, and reshaping our portfolio. Importantly, our board reinforced its confidence in our performance and outlook by approving a 6% increase in our dividend, underlining our commitment to driving strong returns for General Mills shareholders over the long term.”
© FoodBev Media Ltd 2022
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