General Mills Reports 4Q Net Income of $325 Million, Up From $320 Million in 4Q 2011; And Full-Year Net Income of $1.6 Billion
Date Posted: June 27, 2012
Minneapolis, MNGeneral Mills (NYSE: GIS) today reported results for the fourth quarter and full fiscal year ended May 27, 2012.
General Mills Chairman and Chief Executive Officer Ken Powell said, “Fiscal 2012 was characterized by the highest input-cost inflation we’ve experienced in more than three decades, and this cost pressure constrained our earnings growth.
"In addition, slow economic recovery kept many consumer budgets under pressure. In this environment, we took strategic actions that increased our worldwide sales base and strengthened our portfolio.
"In particular, we increased advertising and media investment on our base business, we sustained a high level of new-product activity worldwide, and we made several acquisitions that expand our participation in fast-growing food categories and emerging markets.”
General Mills net sales in fiscal 2012 increased 12 percent to $16.7 billion. Price realization and mix contributed 3 points of net sales growth, and pound volume contributed 9 points of net sales growth, including 12 points of pound volume growth from the Yoplait acquisition.
Foreign exchange did not have a material effect on total net sales growth for the year.
Gross margin as a percent of net sales was below year-ago levels due to higher input costs and the change in business mix to include the Yoplait acquisition.
Input cost inflation exceeded 10 percent for the year.
The company’s advertising and media expense rose 8 percent in fiscal 2012.
Segment operating profit increased 2 percent to exceed $3 billion for the first time in company history.
Earnings attributable to General Mills totaled $1.6 billion and diluted earnings per share totaled $2.35, below prior-year levels due primarily to mark-to-market effects, as well as restructuring charges recorded in the fourth quarter of fiscal 2012.
Adjusted diluted earnings per share, which excludes restructuring expenses, mark-to-market effects, and certain other items affecting comparability of results year to year, totaled $2.56 compared to $2.48 a year ago.
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