MINNEAPOLIS — As General Mills enters fiscal year 2025, its priority is to accelerate net sales growth while reinvesting in growth ideas across its portfolio of leading brands. The company’s growth strategy includes focusing on four pillars “to create competitive advantages and win: boldly building brands, relentlessly innovating, unleashing scale and standing for good.”
On June 26, the company reported financial results for its fourth-quarter and fiscal year ended May 26. Net sales for the fourth quarter were down 6% to $4.7 billion, while year-end net sales were only down 1% to $19.9 billion. Organic net sales for Q4 were down 6%, while organic net sales for FY24 were 1% below year-ago results. Additionally, the company’s operating profit of $779 million was down 5% for the fourth quarter, while year-end operating profit of $3.4 billion essentially matched year-ago results.
“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 Jeff Harmening, General Mills chairman and chief executive officer. “We drove improved volume performance in the second half of the year 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.”
Pet-segment sales were $602 million in the fourth quarter, down 8% year-over-year, driven primarily by lower pound volume and unfavorable net price realization and mix. Organic net sales for the segment were also down 8%.
“Net sales results in the quarter lagged all-channel retail sales by approximately four points, reflecting the headwind from the comparison against favorable trade expense timing in the prior year as well as a decline in retailer inventory,” General Mills reported.
The company’s pet segment operating profit was up 8% to $144 million, driven primarily by HMM cost savings.
For the full year, pet segment net sales were $2.4 billion, down 4% year-over-year. Dry pet food showed a low single-digit decline in full-year net sales, while wet pet food showed a high single-digit decline. Treats fell in between with a mid single-digit decline in full-year net sales.
“Segment operating profit increased 9% to $486 million, driven primarily by HMM cost savings and favorable net price realization and mix, partially offset by lower volume, higher other supply chain costs and higher SG&A expenses,” the company reported.
“As we move into fiscal 2025, our top priority is to accelerate our organic net sales growth, and 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 entire General Mills team for their resilience and engagement in fiscal 2024, and I’m confident we’re ready to capitalize on new opportunities, advance our Accelerate strategy, and deliver for our consumers and our shareholders in the year ahead.”
Read more about corporate strategy, financial performance, mergers and acquisitions on our Business page.