USA – General Mills, entering fiscal year 2025, has reported its financial results for the fourth quarter and the fiscal year ending May 26, facing a 6% decline in net sales for the fourth quarter, amounting to US$4.7 billion
Meanwhile, the company’s year-end net sales saw a modest decrease of 1%, totaling US$19.9 billion. Organic net sales mirrored this trend, with a 6% drop in Q4 and a 1% decrease for the fiscal year 2024.
The company’s operating profit for Q4 stood at US$779 million, down 5%, while the year-end operating profit of US$3.4 billion remained consistent with the previous year.
“We delivered on our updated guidance in fiscal 2024 by pivoting our plans and enhancing our efficiency in response to a more challenging operating environment,” said General Mills chairman and chief executive officer Jeff Harmening.
“We drove improved volume performance in the year’s second half and generated industry-leading levels of Holistic Margin Management (HMM) cost savings, allowing us to protect our brand investment while still delivering on our profit and cash commitments.”
However, the company’s pet segment, which includes Blue Buffalo, experienced notable challenges.
Fourth-quarter sales for the pet segment fell by 8% year-over-year to US$602 million, primarily due to lower pound volume and unfavorable net price realization and mix.
Organic net sales for the segment also declined 8%. General Mills attributed this decline to favorable trade expense timing in the prior year and a reduction in retailer inventory.
Despite these sales challenges, the pet segment’s operating profit increased 8% to US$144 million, driven by HMM cost savings. Pet segment net sales decreased by 4% to US$2.4 billion for the fiscal year.
The breakdown revealed a low single-digit decline in dry pet food sales, a high single-digit decline in wet pet food sales, and a mid-single-digit decline in treat sales. The segment’s operating profit rose 9% to US$486 million, thanks to HMM cost savings and favorable net price realization and mix.
Lower volume, higher supply chain costs, and increased SG&A expenses partially offset this.
“As we move into fiscal 2025, our top priority is to accelerate our organic net sales growth, specifically our volume growth, by delivering remarkable experiences across our portfolio of leading brands,” Harmening continued.
“We plan to drive another year of strong HMM cost savings, allowing us to reinvest in exciting growth ideas that meet evolving consumer needs. I want to thank our General Mills team for their resilience and engagement in fiscal 2024. I’m confident we’re ready to capitalize on new opportunities, advance our Accelerate strategy, and deliver for our consumers and shareholders in the year ahead.”
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