General Mills Inc. (NYSE:GIS)

The financial data reveals several notable trends over the six-year period. Overall, net sales display a declining trend from 2014 to 2017, decreasing from approximately $17.91 billion to $15.62 billion, followed by a slight recovery in the subsequent years, reaching about $16.87 billion in 2019. Cost of sales correspondingly decreases over the same period until 2017 but rises again in 2019, indicating some volatility in production or procurement costs.

Gross margin has been on a generally downward trajectory from 2014 to 2018, falling from nearly $6.37 billion to about $5.43 billion, with a modest increase observed in 2019. This decline suggests possible margin pressures, potentially due to increased costs or pricing challenges. Selling, general, and administrative expenses consistently reduce from 2014 to 2018, indicating improved operational efficiency, though a slight uptick is recorded in 2019.

The divestitures gain or loss fluctuates across the years, with gains reported in 2014 and 2016 but losses or no gains in other years, reflecting irregular impacts from asset sales or acquisitions. Restructuring, impairment, and other exit costs exhibit significant volatility, peaking notably in 2015 at approximately $544 million in expenses, which may have impacted operating results negatively during that year.

Operating profit shows variability, with a peak in 2014 at around $2.96 billion, a dip to approximately $2.08 billion in 2015, and generally stable levels hovering between $2.5 billion and $2.7 billion thereafter. This pattern suggests some recovery and stabilization after a challenging year in 2015. Interest expense rises substantially by 2019, reaching $527.4 million, which alongside relatively stable but low-interest income, increases net interest costs considerably, potentially exerting downward pressure on net profitability.

Earnings before income taxes and after-tax earnings from joint ventures mirror operating profit trends but with sharper fluctuations in income taxes, which decline sharply in 2018 to a low value but partially recover in 2019. After-tax earnings from joint ventures remain relatively stable across the years, indicating consistent performance from these entities.

Net earnings attributable to General Mills reflect a decrease from 2014 to 2015, followed by growth up to 2018 and a decline again in 2019. The highest net earnings of approximately $2.13 billion occur in 2018, suggesting good profitability before a subsequent decrease. Throughout the period, net earnings attributable to redeemable and noncontrolling interests remain relatively small and stable in proportion to overall net earnings.

In summary, the company experienced challenges with declining sales and margin pressures in the mid-period, partially offset by cost control and restructuring efforts. Interest expenses and volatility in extraordinary costs like restructuring influenced profitability. The data indicates a mixed financial performance with certain recovery signs toward the end of the period analyzed.

Net Sales

Depressed between 2014 and 2017, with modest recovery through 2019.

Cost of Sales

Declined initially but increased again in 2019, affecting gross margin stability.

Gross Margin

Overall downward trend until 2018, with slight improvement thereafter.

SG&A Expenses

Gradual reduction until 2018, followed by a marginal increase.

Divestitures Gain/Loss

Inconsistent gains and losses, reflecting variable asset transactions.

Restructuring and Exit Costs

Significant peaks in 2015 and elevated levels in later years, impacting operating costs.

Operating Profit

Dropping sharply in 2015, followed by relative stabilization around $2.5-$2.7 billion.

Interest Expense

Increasing notably over time, contributing to higher net interest costs.

Income Taxes

Highly variable, with marked reduction in 2018.

Net Earnings Attributable to General Mills

Declined in 2015, peaked in 2018, then decreased in 2019, showing earnings volatility.