Corporate Profiles - 2024 - 72

COMPANY overview
General Mills, Inc.
Return to growth path firmly in sight for 2025
through investing in brands
fter a tough fiscal 2024 in which earnings
fell 4% and sales slid 1%, General Mills, Inc.
expects to return to a growth path in fiscal
2025 amid a steadier operating environment and
heightened brand investment to boost its competitiveness.
Specifically,
top executives at the Minneapolisbased
food giant expressed confidence in achieving
the company's long-term target of 2% to 3%
top-line growth.
" What gives me confidence we can do that is, if
you look before the pandemic, our categories were
growing in the 2% to 3% range, and we have
regained momentum in most of our categories, "
Jeffrey L. Harmening, chairman and chief executive
officer, said in a fireside chat at the Barclays
Consumer Staples Conference on Sept. 5.
" So, they're actually back to growth, " he said.
" In fact, the (General Mills) North America Retail
A
earnings declined 4% to $2.5 billion, equal to
$4.34 per share on the common stock, from $2.59
billion, or $4.36 per share, in fiscal 2023. Adjusted
net EPS was $4.52 per share versus $4.30 in the
previous year. Net sales dipped 1% to $19.86 billion.
Operating income was flat at $3.43 billion.
The core North America Retail business tallied
fiscal 2024 net sales of $12.47 billion, down 1%
from a year ago. Net sales fell by low single digits
for the US Meals & Baking Solutions, US Snacks
and US Morning Foods operating units but grew by
mid-single digits in Canada.
Dana McNabb, who was promoted to group vice
president for North America Retail in January, said
General Mills is " seeing progress " so far in fiscal
2025.
" We're really encouraged by the gradual improvement
that we're seeing in pounds (unit volume), "
McNabb said at the Barclays conference in
September. " If you look at our categories over the
last three months, what we're seeing for the period
ending August is that pounds are up in our categories
(by) 1%. That is an improvement of over 3.5
points versus this time last year and an improvement
versus last quarter. It's pretty much back to
historical levels. "
Harmening and McNabb also pointed to GenChief
executive officer -
Jeffrey L. Harmening
categories are at about the 1% growth range. So,
they're back to about where they were before the
pandemic. And we certainly believe that we are
approaching a space where the category growth is
what it was before the pandemic. "
Harmening said General Mills is confident it can
at least hold its share in its current categories " because
we've done it like five out of the last six years. "
But first, the company will need to put a difficult
fiscal 2024 in the rearview mirror.
For the 2024 fiscal year ended May 26, net
72 \ October 2024
eral Mills' roster of billion-dollar brands - including
Cheerios, Betty Crocker, Pillsbury, Nature Valley, Old
El Paso, Häagen-Daz, Yoplait, Blue Buffalo and, most
recently, Totino's - and stepped-up marketing investment
as the main source of their optimism.
" We spent a lot of time over the last four or five
years working through product supply chain disruptions,
inflation, pricing and all the rest, " Harmening
said. " Now we're back to a period where how you
market really counts. "
McNabb said one thing that consumers can expect
to see from General Mills in the year ahead is
a ramp up in marketing.
" We are in a different business cycle now, and
that is going to require us to up our game on demand
generation, " she said.
A priority will be regaining household penetration,
especially among children.
" The way that we're going to do that is making
2022
Source: General Mills, Inc.
$18,993
General Mills, Inc.
net earnings
(fiscal years ended in May)
in millions
2024
2023
2022
$2,497
$2,594
$2,707
Source: General Mills, Inc.
General Mills, Inc.
net sales
(fiscal years ended in May)
in millions
2024
2023
$19,857
$20,094
General Mills, Inc.
share price
Source: New York Stock Exchange
$56
$61
$66
$71
$76
HIGH =
Sept. 4, 2024 = $73.58
Sept. Nov.
2023
GENERAL MILLS, INC.
Jan.
2024
Sept. 4, 2024 = $73.58
LOW =
Oct. 12, 2023 = $59.88
March May
July
Sept.
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Corporate Profiles - 2024

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