Operating Profit Margin
since 2005
Calculation
General Mills Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating profit1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| May 26, 2019 | 14.92% | = | 100 | × | 2,515,900) | ÷ | 16,865,200) |
| May 27, 2018 | 15.94% | = | 100 | × | 2,509,300) | ÷ | 15,740,400) |
| May 28, 2017 | 16.43% | = | 100 | × | 2,566,400) | ÷ | 15,619,800) |
| May 29, 2016 | 16.35% | = | 100 | × | 2,707,400) | ÷ | 16,563,100) |
| May 31, 2015 | 11.78% | = | 100 | × | 2,077,300) | ÷ | 17,630,300) |
| May 25, 2014 | 16.51% | = | 100 | × | 2,957,400) | ÷ | 17,909,600) |
| May 26, 2013 | 16.04% | = | 100 | × | 2,851,800) | ÷ | 17,774,100) |
| May 27, 2012 | 15.38% | = | 100 | × | 2,562,400) | ÷ | 16,657,900) |
| May 29, 2011 | 18.65% | = | 100 | × | 2,774,500) | ÷ | 14,880,200) |
| May 30, 2010 | 17.61% | = | 100 | × | 2,606,100) | ÷ | 14,796,500) |
| May 31, 2009 | 15.81% | = | 100 | × | 2,322,900) | ÷ | 14,691,300) |
| May 25, 2008 | 16.32% | = | 100 | × | 2,227,800) | ÷ | 13,652,100) |
| May 27, 2007 | 16.54% | = | 100 | × | 2,057,800) | ÷ | 12,441,500) |
| May 28, 2006 | 16.89% | = | 100 | × | 1,966,000) | ÷ | 11,640,000) |
| May 29, 2005 | 20.19% | = | 100 | × | 2,270,000) | ÷ | 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
The analysis of the financial data over this 15-year period reveals several key trends and patterns related to operating profit, net sales, and operating profit margin.
- Net Sales
- Net sales exhibit a generally increasing trend from approximately 11.24 billion USD in 2005 to 16.87 billion USD in 2019. There is consistent growth year-over-year, with occasional fluctuations notably between 2013 and 2016, where there is a decline from 17.97 billion USD in 2013 to 16.56 billion USD in 2016. After this period of contraction, sales recovered and resumed growth towards 2019.
- Operating Profit
- Operating profit shows a more variable pattern compared to net sales. It rises from 2.27 billion USD in 2005 to peak levels of around 2.95 billion USD in 2014, but also experiences significant declines, especially around 2015 where it dips sharply to approximately 2.08 billion USD from the previous year's 2.96 billion USD. Following this trough in 2015, operating profit recovers, fluctuating around 2.5 to 2.7 billion USD through 2019, but does not return to the earlier peak levels observed in 2014.
- Operating Profit Margin
- The operating profit margin indicates the proportion of net sales converted into operating profit and demonstrates a downward trend from 20.19% in 2005 to 14.92% in 2019. The margin decreases notably in the early years, reaching a low around 15.38%-16.5% during 2011-2013, then dips sharply in 2015 to 11.78%, reflecting a tough operating environment or increased costs during that year. Post-2015, the margin improves somewhat but remains below the early peak, fluctuating near 15%-16% and ending at 14.92% in 2019.
Overall, the data suggest that while the company has managed to grow its net sales significantly over the entire period, the operating profitability as a percentage of sales has declined, indicating pressures on cost management or pricing. The sharp dip in both operating profit and margin in 2015 is a notable anomaly that may warrant further investigation. Despite this, operating profit levels have stabilized somewhat in more recent years, although at lower margins than in the mid-2000s.
Comparison to Competitors
General Mills Inc., operating 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 | 14.92% | 27.06% | 14.86% | 15.32% | 35.33% |
| May 27, 2018 | 15.94% | 27.31% | 12.77% | 15.64% | 38.40% |
| May 28, 2017 | 16.43% | 21.18% | 13.54% | 16.54% | 40.01% |
| May 29, 2016 | 16.35% | 20.61% | 9.91% | 15.58% | 40.53% |
| May 31, 2015 | 11.78% | 19.70% | 30.02% | 13.25% | 39.65% |
| May 25, 2014 | 16.51% | 21.11% | 9.47% | 14.37% | 39.31% |
| May 26, 2013 | 16.04% | 21.83% | 11.25% | 14.61% | 43.29% |
| May 27, 2012 | 15.38% | 22.45% | 10.39% | 13.91% | 44.18% |
| May 29, 2011 | 18.65% | 21.82% | 12.25% | 14.48% | 42.90% |
| May 30, 2010 | 17.61% | 24.06% | 11.51% | 14.41% | 41.16% |
| May 31, 2009 | 15.81% | 26.56% | 13.68% | 18.61% | 40.10% |
| May 25, 2008 | 16.32% | 26.44% | 9.04% | 16.03% | 39.87% |
| May 27, 2007 | 16.54% | 25.13% | 11.63% | 18.16% | — |
| May 28, 2006 | 16.89% | 26.19% | 13.17% | 18.33% | — |
| May 29, 2005 | 20.19% | 26.34% | 13.93% | 18.19% | — |
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).