General Mills Reports 6% Sales Decline For 2017
Consumer foods manufacturer General Mills has released its fourth quarter and full year fiscal results for 2017, which shows that net sales for the year decreased by 6% to $15.62 billion, while operating profit was down by 5% to $2.57 billion.
Net sales for the fourth quarter declined by 3% to $3.81 billion, which the company says is due to volume reduction in the North America retail and Europe and Australia segments.
"Our fourth-quarter results finished in line with our expectations, with improved organic net sales trends in total and across three of our four operating segments," said General Mills CEO Jeff Harmening.
The company's board declared a quarterly dividend of $0.49 per share, representing an increase of 2% compared to the previous quarter.
The company says that it will be focusing on its five global platforms - cereal, snacks, yoghurt, convenience meals, and premium ice cream - along with its new organisational structure to create growth in 2018. The company expects organic net sales to decline 1-2%, but is anticipating a rise in operating profit margin.
"While we took important steps in fiscal 2017 to globalise our business structure, accelerate our cost-savings efforts, expand our margins, and drive growth in adjusted diluted EPS, our results on the top line fell well short of our standards," said Harmening.
"Our top priority in fiscal 2018 is to make significant strides toward returning our business to sustainable top line growth. Our plans call for investment in product news and innovation to accelerate growth for businesses where we have positive momentum, and to improve those that are underperforming."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.