, maker of some of the best-known food products in the world, served up a fall in profits in the year to the end of May, it announced today.
The company reported both fourth-quarter and full-year figures today, with generally buoyant sales failing to be matched by an equally sunny profit picture.
Net sales in the fourth quarter were 2% higher at $3.89 billion than during the comparable period of the previous year, and 1% higher in the full year.
But profit margins may have proved the company’s weak point. Gross margins declined by 1.1 percentage points in the full year to 34.5% of net sales, while in the fourth quarter they dropped by 1.8 percentage points to 36.5%.
General Mills said: “We are currently pursuing several multi-year restructuring initiatives designed to increase our efficiency and focus our business behind our key growth strategies.”
“In the fourth quarter of 2018, we approved global cost savings initiatives designed to reduce administrative costs and align resources behind high growth initiatives. These actions will affect approximately 625 positions, and we expect to incur approximately $55 millionof net expenses.”