General Mills’ sales rose 5% to $11.07 billion for fiscal 2004 ended May 30, 2004.
U.S. retail operations recorded net sales of $7.76 billion, up 5%. Unit volume rose 4% with gains in all of Mills’ six major divisions: Big G cereal (up 2%), Yoplait (up 10%), snacks (up 5%), meals (up 3%), Pillsbury USA (up 2%) and baking products (up 4%).
International sales rose 19% to $1.55 billion.
“General Mills posted good sales and earnings gains in 2004, despite the challenges of rising commodity costs, increasing employee benefits expense, and the recent popularity of low-carbohydrate diets, which slowed sales in several of our major product categories,” said CEO Steve Sanger in a statement.
Sanger projects commodity costs will increase $165 million in fiscal 2005; to counter that—as well as higher health care costs and a shorter fiscal year—General Mills has raised prices on some items and will step up R&D and productivity and cost-saving initiatives, Sanger said.
Meanwhile, Vice Chairman Ray Viault retires in October; he has overseen the Meals, Pillsbury USA, Baking Products and Bakeries & Foodservice divisions and served on the supervisory board of Cereal Partners Worldwide, General Mills’ joint venture with Nestlé.
Ken Powell has been elected executive VP to replace Viault at the helm of the four divisions. He has been CEO of Cereal Partners Worldwide.
Separately, Diageo CEO Paul Walsh and Grand Cru Consulting CEO John Keenan resigned from General Mills’ board of directors June 23, severing General Mills’ ties with Diageo. Mills bought Pillsbury from Diageo in October 2001.
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