General Mills reports lower sales and profit this quarter
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Business is tough at General Mills, the food conglomerate headquartered in Golden Valley. The maker of well-known products like Lucky Charms, Cheerios, and Bisquick reported lower sales and profit in its fiscal fourth quarter and for its fiscal year.
The company’s stock is trading around a five-year low. The stock is down some 20 percent over the past year.
Management said the coming year will be difficult. The company said its multi-year restructuring plan will include job cuts.
General Mills is struggling with weaker consumer demand for its snacks and cereals. Consumers are tightening their belts — thanks to increasing economic uncertainty — while favoring fresh and healthy foods. Profits also have been nicked by increased investment and higher costs.
Management is banking on the combination of innovation and restructuring to restore the company’s growth momentum.
The company is investing in a number of initiatives. Among them: Bulking up its portfolio of protein offerings; reviving its snack business with bolder and spicier flavors; and expanding its Blue Buffalo brand into the fresh pet-food market. The pet business is a bright spot.
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