General Mills, Inc. (NYSE: GIS), a global food company, has reported financial results for the fourth quarter and fiscal year ended May 28, 2023. General Mills's Chairman and CEO, Jeff Harmening, expressed satisfaction with the fiscal year's performance and highlighted the successful execution of General Mills' Accelerate strategy, which has driven organic net sales growth, exceeded $20 billion in annual net sales, and achieved double-digit growth in adjusted diluted earnings per share (EPS).

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Dividend Increase Demonstrates Commitment to Shareholders

General Mills' Board of Directors has approved a nine percent dividend increase effective August 2023, reaffirming General Mills's commitment to delivering strong returns to its shareholders. This decision reflects General Mills' confidence in its financial performance and its focus on long-term growth goals. The dividend increase underscores General Mills's commitment to creating value for its investors.

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Accelerate Strategy Driving Sustainable Growth

General Mills is actively implementing its Accelerate strategy, designed to foster sustainable and profitable growth while delivering top-tier shareholder returns. The strategy focuses on four pillars: building brands, driving innovation, leveraging scale, and upholding social responsibility. By prioritizing core markets, global platforms, and local gem brands, General Mills aims to enhance its growth profile through strategic acquisitions and divestitures.

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Fourth Quarter Results Summary

During the fourth quarter, General Mills achieved a three percent increase in net sales, amounting to $5.0 billion. Organic net sales, which exclude the impact of acquisitions and divestitures, grew by five percent, driven by positive price realization and mix. However, General Mills experienced a slight headwind from net divestiture and foreign currency exchange. Gross margin decreased due to higher input costs, offset partially by favorable net price realization and mix. Adjusted gross margin, which excludes certain effects, increased by 120 basis points.

Operating profit decreased by 19 percent to $818 million, primarily due to higher selling, general, and administrative expenses, as well as higher restructuring charges. This was partially offset by favorable net investment activity. Net earnings attributable to General Mills declined by 25 percent to $615 million, resulting in a diluted EPS decrease of 24 percent to $1.03.

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Full Year Results Summary

General Mills achieved a six percent increase in net sales for the fiscal year, amounting to $20.1 billion. Organic net sales grew by 10 percent, driven by positive price realization and mix. General Mills faced headwinds from net divestiture and foreign currency exchange. Gross margin declined due to higher input costs but increased when excluding certain effects.

Operating profit decreased by one percent to $3.4 billion, primarily due to higher selling, general, and administrative expenses, as well as higher restructuring charges. However, gains from divestitures and higher gross profit partially offset this decline. Net earnings attributable to General Mills declined by four percent to $2.6 billion, resulting in a two percent decrease in diluted EPS to $4.31.