Corporate Profiles - 2023 - 76

COMPANY overview
General Mills, Inc.
G
Grain-based foods at heart of
growth investments
eneral Mills, Inc. has identified three
priorities as the Minneapolis-based
company heads into 2024: competing
effectively, improving supply chain efficiency
and maintaining a disciplined approach to
capital allocation.
" We entered fiscal 2024 with a sharp focus
on the evolving external environment, headlined
by moderating inflation, stabilizing supply
chains and a resilient but increasingly cautious
consumer, " said Jeffrey L. Harmening, chairman
and chief executive officer of General Mills, Inc.
" ... We will continue adapting to the changing
environment, and we remain on track to deliver
our fiscal 2024 financial objectives. "
Those financial objectives include fiscal
2024 adjusted operating profit that is expected
to increase 4% to 6% and organic net sales
that are expected to increase 3% to 4% for
the year.
To reach its goals, General Mills will need
to put a challenging fiscal 2023 in the rearview
mirror. Net income in the fiscal 2023 year
ended May 28 totaled $2.59 billion, equal to
$90.89 on May 15, General Mills' stock had
slumped nearly 30% by early September to as
low as $64.70.
To achieve its growth targets, General Mills
will need to march forward on its key priorities,
beginning with continuing to compete effectively.
In North America Retail, General Mills
anticipates an improvement in volume trends
over the remainder of fiscal 2024, driven by " a
reduced headwind from pricing, greater impact
from distribution, innovation, brand building,
and quality merchandising, and a benefit from
added capacity on certain constrained platforms. "
Elsewhere
in the company's portfolio, North
America Foodservice has been competing effectively
by leveraging its advantaged sales,
supply chain and innovation capabilities, General
Mills said. Meanwhile, a more cautious approach
by pet owners regarding their economic
outlook has the company expecting more challenging
volume trends in US pet food over the
coming months.
General Mills' second priority involves improving
supply chain efficiency.
" The supply chain environment has steadily
Chief executive officer -
Jeffrey L. Harmening
$4.36 per share on the common stock, down
4% from $2.71 billion, or $4.46 per share, in
fiscal 2022. Net sales were $20.09 billion, up
6% from $18.99 billion the year before. The
company's stock has been on a gradual decline
since the end of fiscal 2023. After peaking at
76 \ October 2023
improved in recent months, with supply disruptions
returning to pre-pandemic levels and
General Mills' customer service levels reaching
the low- to mid-90s in the US, " the company
said. " With a more stable supply chain allowing
for more resources to be redirected toward productivity,
the company remains on track to step
up its Holistic Margin Management cost savings
to 4% of cost of goods sold in fiscal 2024,
compared to 3% generated in fiscal 2023. "
A final focal point for General Mills is maintaining
a disciplined approach to capital allocation.
To that end, the company said it is making
a capital investment into the business at
approximately 4% of net sales in fiscal 2024.
" With debt leverage comfortably below its 3x
target, the company has ample capacity to further
reshape its portfolio with growth- and value-accretive
acquisitions, " General Mills said.
Acquisitions may not have featured prominently
General Mills, Inc.
net earnings
(fiscal years ended in May)
in millions
2023
2022
2021
Source: General Mills, Inc.
$2,594
$2,707
$2,340
General Mills, Inc.
net sales
(fiscal years ended in May)
in millions
2023
2022
2021
Source: General Mills, Inc.
$20,094
$18,993
$18,127
General Mills, Inc.
share price
Source: New York Stock Exchange
$60
$69
$78
$87
$96
Sept. Nov.
2022
GENERAL MILLS, INC.
Jan.
2023
Sept. 15, 2023 = $65.85
HIGH =
May 12, 2023 = $89.91
LOW =
Sept. 7, 2022 = $64.99
March May
July
Sept.
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Corporate Profiles - 2023

Table of Contents for the Digital Edition of Corporate Profiles - 2023