Net Profit Margin
since 2005
Calculation
General Mills Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net earnings attributable to General Mills1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| May 26, 2019 | 10.39% | = | 100 | × | 1,752,700) | ÷ | 16,865,200) |
| May 27, 2018 | 13.54% | = | 100 | × | 2,131,000) | ÷ | 15,740,400) |
| May 28, 2017 | 10.61% | = | 100 | × | 1,657,500) | ÷ | 15,619,800) |
| May 29, 2016 | 10.25% | = | 100 | × | 1,697,400) | ÷ | 16,563,100) |
| May 31, 2015 | 6.93% | = | 100 | × | 1,221,300) | ÷ | 17,630,300) |
| May 25, 2014 | 10.19% | = | 100 | × | 1,824,400) | ÷ | 17,909,600) |
| May 26, 2013 | 10.44% | = | 100 | × | 1,855,200) | ÷ | 17,774,100) |
| May 27, 2012 | 9.41% | = | 100 | × | 1,567,300) | ÷ | 16,657,900) |
| May 29, 2011 | 12.09% | = | 100 | × | 1,798,300) | ÷ | 14,880,200) |
| May 30, 2010 | 10.34% | = | 100 | × | 1,530,500) | ÷ | 14,796,500) |
| May 31, 2009 | 8.88% | = | 100 | × | 1,304,400) | ÷ | 14,691,300) |
| May 25, 2008 | 9.48% | = | 100 | × | 1,294,700) | ÷ | 13,652,100) |
| May 27, 2007 | 9.19% | = | 100 | × | 1,143,900) | ÷ | 12,441,500) |
| May 28, 2006 | 9.36% | = | 100 | × | 1,090,000) | ÷ | 11,640,000) |
| May 29, 2005 | 11.03% | = | 100 | × | 1,240,000) | ÷ | 11,244,000) |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).
1 US$ in thousands
Between 2005 and 2019, the net profit margin exhibited significant volatility, oscillating between a low of 6.93% and a peak of 13.54%. While net sales generally trended upward from 2005 to a peak in 2014, the net profit margin did not follow a linear correlation with revenue growth, indicating fluctuations in operational efficiency and cost management over the period.
- Margin Volatility and Cyclic Trends
- The initial period from 2006 to 2009 was characterized by a gradual compression of margins, declining from 9.36% to a local minimum of 8.88%. A subsequent recovery occurred between 2010 and 2011, with the margin reaching 12.09% before retreating to 9.41% in 2012.
- Significant Profitability Contraction
- A sharp decline in profitability is observed in 2015, where the net profit margin dropped to 6.93%, the lowest value in the analyzed timeframe. This contraction coincided with a notable decrease in net earnings to 1.22 billion US dollars, despite net sales remaining relatively robust at 17.63 billion US dollars.
- Peak Performance and Efficiency
- The highest level of profitability was achieved in 2018, with the net profit margin peaking at 13.54%. This peak was driven by net earnings of 2.13 billion US dollars, the highest absolute earnings figure in the sequence, occurring despite net sales being lower than the peaks recorded in 2013 and 2014.
- Long-term Revenue and Earnings Correlation
- Throughout the 14-year period, net sales grew from 11.24 billion US dollars in 2005 to 16.87 billion US dollars in 2019. However, the instability of the net profit margin suggests that earnings growth was periodically decoupled from sales growth, specifically during the 2015 downturn and the 2018 efficiency peak.
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Comparison to Competitors
General Mills Inc., net profit margin, long-term trends, comparison to competitors
| General Mills Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| May 26, 2019 | 10.39% | 23.94% | 14.96% | 10.89% | 24.11% |
| May 27, 2018 | 13.54% | 20.20% | 13.03% | 19.35% | 26.70% |
| May 28, 2017 | 10.61% | 3.52% | 11.28% | 7.65% | 20.99% |
| May 29, 2016 | 10.25% | 15.59% | 6.40% | 10.08% | 26.11% |
| May 31, 2015 | 6.93% | 16.60% | 24.52% | 8.65% | 25.65% |
| May 25, 2014 | 10.19% | 15.43% | 6.38% | 9.77% | 25.17% |
| May 26, 2013 | 10.44% | 18.32% | 11.09% | 10.15% | 27.47% |
| May 27, 2012 | 9.41% | 18.78% | 8.65% | 9.43% | 28.05% |
| May 29, 2011 | 12.09% | 18.42% | 6.49% | 9.69% | 27.63% |
| May 30, 2010 | 10.34% | 33.63% | 8.36% | 10.93% | 26.68% |
| May 31, 2009 | 8.88% | 22.02% | 7.48% | 13.75% | 25.33% |
| May 25, 2008 | 9.48% | 18.18% | 6.87% | 11.89% | 26.80% |
| May 27, 2007 | 9.19% | 20.73% | 6.95% | 14.33% | — |
| May 28, 2006 | 9.36% | 21.09% | 8.91% | 16.06% | — |
| May 29, 2005 | 11.03% | 21.09% | 7.72% | 12.52% | — |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).
Comparison to Sector (Food, Beverage & Tobacco)
General Mills Inc., net profit margin, long-term trends, comparison to sector (food, beverage & tobacco)
| General Mills Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| May 26, 2019 | 10.39% | 17.04% |
| May 27, 2018 | 13.54% | 19.88% |
| May 28, 2017 | 10.61% | 9.81% |
| May 29, 2016 | 10.25% | 13.66% |
| May 31, 2015 | 6.93% | 16.45% |
| May 25, 2014 | 10.19% | 13.18% |
| May 26, 2013 | 10.44% | 15.47% |
| May 27, 2012 | 9.41% | 15.02% |
| May 29, 2011 | 12.09% | 13.67% |
| May 30, 2010 | 10.34% | 17.42% |
| May 31, 2009 | 8.88% | 15.85% |
| May 25, 2008 | 9.48% | 14.49% |
| May 27, 2007 | 9.19% | 13.48% |
| May 28, 2006 | 9.36% | 14.73% |
| May 29, 2005 | 11.03% | 12.90% |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).
Comparison to Industry (Consumer Staples)
General Mills Inc., net profit margin, long-term trends, comparison to industry (consumer staples)
| General Mills Inc. | Consumer Staples | |
|---|---|---|
| May 26, 2019 | 10.39% | 4.62% |
| May 27, 2018 | 13.54% | 6.05% |
| May 28, 2017 | 10.61% | 5.52% |
| May 29, 2016 | 10.25% | 5.88% |
| May 31, 2015 | 6.93% | 5.62% |
| May 25, 2014 | 10.19% | 6.00% |
| May 26, 2013 | 10.44% | 6.75% |
| May 27, 2012 | 9.41% | 6.65% |
| May 29, 2011 | 12.09% | 6.99% |
| May 30, 2010 | 10.34% | 7.59% |
| May 31, 2009 | 8.88% | 6.93% |
| May 25, 2008 | 9.48% | 6.75% |
| May 27, 2007 | 9.19% | 6.11% |
| May 28, 2006 | 9.36% | 6.35% |
| May 29, 2005 | 11.03% | 6.29% |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).