• FY net earnings up over 17%
  • Net sales rise 1%; volumes flat
  • Q4 profits down on lower sales
General Mills saw US sales volumes rise; international volumes were flat

General Mills saw US sales volumes rise; international volumes were flat

US food group General Mills hailed an "exceptional year" for the company after a 17% rise in annual earnings.

The owner of Cheerios cereals yesterday (29 June) posted a 17.3% rise in net earnings to US$1.53bn for the year to 30 May.

The improved bottom line as segment operating profit grew 8% to $2.9bn, thanks in part to lower costs.

Chairman and CEO Ken Powell said: "This was an exceptional year for our company. We achieved broad-based sales growth and expanded gross margin, which allowed us to invest at above-planned levels in media support and selling capabilities. And our 16% EPS increase significantly exceeded the high single-digit rate we target in our long-term growth model."

Turnover was up 0.7% at $14.79bn, with volumes flat but price and mix rising 1%.

For the fourth quarter of the year, General Mills fell 40.9% to $211.9m, with sales down 2% at $3.6bn.

Revenues were affected by one fewer selling week in the quarter and disposals.

Click here for the full earnings release from General Mills and click here for the company's comments on its margins and competition in the US.