US cereal company General Mills has reported rises in sales and profits for the 2005 financial year, but fourth quarter sales were down.
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For the year ended 29 May 2005, General Mills’ net sales grew to $11.24bn from $11.07bn the year before. Net earnings grew to reach $1.24bn, compared with $1.06bn the year before. This included a gain of $284m after tax from businesses divested during 2005, partially offset by $87m after-tax expense associated with the redemption of $760m principal amount of General Mills’ notes due in 2012.
Chairman and CEO Steve Sanger said 2005 was a successful year for the company. “On a comparable 52-week basis, our net sales grew 3%, outpacing 2% growth in unit volume,” he said. “Operating profit results in total reflected the significant input cost inflation we experienced in 2005; however, the Bakeries and Foodservice division met its goal of matching last year’s profits and our International division posted strong profit growth. In addition, after-tax earnings from joint ventures grew 20 percent to reach $89 million.”
Net sales for the fourth quarter of 2005 totalled $2.72bn, 3% below prior-year results that included an extra week. Earnings after tax totaled $460m, up 65%. This included the gain recorded from dispositions of the company’s 40.5% interest in Snack Ventures Europe and the Lloyd’s barbeque entrees business.
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By GlobalData
