Analysis of Reportable Segments
General Mills Inc. operates in 5 segments: North America Retail; Convenience Stores & Foodservice; Europe & Australia; Asia & Latin America; and Pet.
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- Income Statement
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Segment Profit Margin
General Mills Inc., profit margin by reportable segment
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
|---|---|---|---|---|---|---|
| North America Retail | ||||||
| Convenience Stores & Foodservice | ||||||
| Europe & Australia | ||||||
| Asia & Latin America | ||||||
| Pet |
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).
The annual segment profit margin data reveals several distinct trends across the various business segments.
- North America Retail
- This segment shows a general upward trend over the five reported years, starting at 20.52% in 2015 and gradually increasing to 22.94% by 2019. There was a minor dip in 2018 to 21.92%, but the overall trajectory indicates strengthening profitability in this segment.
- Convenience Stores & Foodservice
- This segment exhibits steady growth, with profit margins improving from 17.7% in 2015 to 21.3% in 2019. The progression is fairly consistent, though there is a slight decline in 2018 to 20.34% before recovering in the subsequent year.
- Europe & Australia
- The Europe & Australia segment demonstrates a declining trend in profitability. The margin peaked at 10.03% in 2016 but then decreased steadily to 6.54% by 2019, indicating potential challenges in maintaining margin levels in these regions.
- Asia & Latin America
- This segment shows more variability and generally low profit margins. Beginning at 6.32% in 2015, margins declined to 4.05% in 2016, slightly recovered to 4.84% in 2017, dropped again to 2.32% in 2018, and then rose to 4.38% in 2019. This fluctuation highlights instability and potential market challenges in these regions.
- Pet
- The Pet segment is only reported for 2019, with a profit margin of 18.76%. Without prior data, it is not possible to assess a trend, but the margin level appears moderately strong compared to some other segments.
Segment Profit Margin: North America Retail
General Mills Inc.; North America Retail; segment profit margin calculation
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Segment operating profit | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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).
1 2019 Calculation
Segment profit margin = 100 × Segment operating profit ÷ Net sales
= 100 × ÷ =
- Net Sales
- Net sales exhibited a consistent downward trend from 2015 to 2019. Starting at approximately 11.61 billion USD in 2015, net sales decreased annually, reaching roughly 9.93 billion USD in 2019. This represents an overall decline of about 14.5% over the five-year period.
- Segment Operating Profit
- Segment operating profit fluctuated moderately during the period. After peaking at around 2.38 billion USD in 2015, it declined gradually through 2017 to about 2.22 billion USD. In 2018 and 2019, the profit showed some recovery, rising to approximately 2.28 billion USD in 2019. Despite this partial rebound, the profit in 2019 was still lower than the 2015 peak.
- Segment Profit Margin
- The segment profit margin indicated an overall improvement during the years in review. Beginning at 20.52% in 2015, the margin increased steadily to reach 22.94% by 2019. This suggests enhanced profitability relative to sales despite the declining sales volume.
- Overall Analysis
- While net sales decreased consistently over the five-year period, segment operating profit demonstrated resilience with minor fluctuations and a slight recovery towards the end. The profit margin's upward trend points to improved operational efficiency or cost management within the segment, allowing for higher profitability despite reduced sales. This could indicate successful strategic adjustments or shifts in product mix favoring higher-margin offerings.
Segment Profit Margin: Convenience Stores & Foodservice
General Mills Inc.; Convenience Stores & Foodservice; segment profit margin calculation
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Segment operating profit | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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).
1 2019 Calculation
Segment profit margin = 100 × Segment operating profit ÷ Net sales
= 100 × ÷ =
- Segment Operating Profit
- Operating profit shows a generally upward trend over the analyzed period, increasing from $353.1 million in 2015 to $419.5 million in 2019. There is consistent growth each year, except for a slight dip in 2018 where the operating profit decreased to $392.6 million from $401.2 million the previous year. This indicates overall improving profitability with minor fluctuations.
- Net Sales
- Net sales demonstrate a fluctuating pattern throughout the period. Starting at $1,995.1 million in 2015, sales declined over the next two years, reaching a low of $1,870.0 million in 2017. Subsequently, net sales recovered somewhat, rising to $1,930.2 million in 2018 and $1,969.1 million in 2019. Although the later years show a rebound, sales have not consistently trended upward.
- Segment Profit Margin
- The segment profit margin exhibits a steady increase across the period reviewed. Beginning at 17.7% in 2015, the margin rises to 21.3% by 2019, with incremental improvements each year except for a minor decline from 21.45% in 2017 to 20.34% in 2018. This overall growth in profit margin suggests enhanced operational efficiency or improved pricing power despite the variations in net sales.
- Summary of Trends
- While net sales have shown some volatility with an initial decline followed by partial recovery, segment operating profit and profit margins have generally increased, indicating improved profitability and cost management within the segment. The slight dip in both operating profit and margin in 2018 may warrant further investigation, but the positive trajectory in these profitability measures points to a strengthening financial performance over the time period analyzed.
Segment Profit Margin: Europe & Australia
General Mills Inc.; Europe & Australia; segment profit margin calculation
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Segment operating profit | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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).
1 2019 Calculation
Segment profit margin = 100 × Segment operating profit ÷ Net sales
= 100 × ÷ =
The segment data for Europe & Australia reveals several notable trends from fiscal years 2015 through 2019. The net sales fluctuated throughout the period, showing a peak in 2015 at approximately $2.13 billion, followed by a general decline with some minor recovery in 2018, before decreasing again in 2019. This indicates some volatility in revenue generation within the segment over the observed years.
Segment operating profit experienced a downward trend, starting at $179.4 million in 2015, increasing to a peak of $200.3 million in 2016, then progressively declining each subsequent year to reach $123.3 million in 2019. This decline in operating profit despite fluctuations in net sales suggests potential challenges in cost management or pricing pressures within the segment.
The segment profit margin percentage mirrors the trend in operating profit, rising from 8.44% in 2015 to 10.03% in 2016, then decreasing consistently to 6.54% by 2019. This decline in margin alongside falling operating profits indicates diminishing profitability relative to sales, possibly driven by increased expenses or lower sales prices impacting the segment’s overall financial efficiency.
- Net Sales
- Experienced variability; peaked in 2015, declined by 2017, saw some recovery in 2018, followed by a decrease in 2019.
- Operating Profit
- After reaching the highest point in 2016, there was a notable and continuous decline in profits through 2019.
- Profit Margin
- Improved in 2016 but then eroded steadily, indicating reduced efficiency or higher costs relative to sales.
Overall, the data points to a challenging environment for the Europe & Australia segment, with declining profitability and variable sales performance over the five-year period. The trends highlight the need for management to assess factors affecting cost structures and pricing strategies to improve segment returns moving forward.
Segment Profit Margin: Asia & Latin America
General Mills Inc.; Asia & Latin America; segment profit margin calculation
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Segment operating profit | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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).
1 2019 Calculation
Segment profit margin = 100 × Segment operating profit ÷ Net sales
= 100 × ÷ =
- Net Sales
- The segment's net sales exhibited a declining trend over the analyzed period. Starting from US$ 1,896,600 thousand in 2015, sales decreased to US$ 1,653,300 thousand by 2019. There was a slight fluctuation in the intermediate years, with a minor increase in 2017 (US$ 1,728,400 thousand) before continuing the downward trajectory.
- Segment Operating Profit
- Operating profit showed variability over the years. It peaked at US$ 119,800 thousand in 2015, followed by a sharp decline to US$ 69,100 thousand in 2016. Subsequently, there was an improvement in 2017 to US$ 83,600 thousand, a notable drop in 2018 to US$ 39,600 thousand, and a recovery in 2019 to US$ 72,400 thousand. Despite fluctuations, the operating profit did not return to 2015 levels by the end of the period.
- Segment Profit Margin
- The profit margin trend mirrored the fluctuations observed in operating profit. It reached the highest point at 6.32% in 2015, then declined considerably to 4.05% in 2016. The margin slightly recovered to 4.84% in 2017 but experienced a significant drop to 2.32% in 2018, before improving to 4.38% in 2019. The margin remained below the 2015 peak throughout the period.
- Overall Analysis
- Overall, the segment faced challenges in maintaining consistent growth. Both net sales and operating profit exhibited downward pressures, with intermittent recoveries that did not sustain long-term improvements. The profit margin volatility reflects the difficulties in converting sales into profit efficiently during this period. The data suggests a need for strategic focus to stabilize and potentially grow both sales and profitability within this segment.
Segment Profit Margin: Pet
General Mills Inc.; Pet; segment profit margin calculation
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Segment operating profit | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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).
1 2019 Calculation
Segment profit margin = 100 × Segment operating profit ÷ Net sales
= 100 × ÷ =
- Segment Operating Profit
- The segment operating profit is reported only for the year ending May 26, 2019, at $268,400 thousand. Due to the absence of data for previous years, no trend analysis can be conducted for this metric over time.
- Net Sales
- Net sales are also reported exclusively for the year ending May 26, 2019, totaling $1,430,900 thousand. The lack of comparative historical data prevents observation of sales growth or decline trends within the period provided.
- Segment Profit Margin
- The segment profit margin is available only for the year ending May 26, 2019, with a value of 18.76%. No trend analysis or margin development insights are possible due to missing prior period data.
- Overall Analysis
- The data for this segment is limited to a single year's snapshot, restricting any assessment of performance dynamics or business development trends over time. The 2019 figures indicate a profit margin of 18.76%, with net sales of approximately $1.43 billion and operating profit of $268.4 million, reflecting the segment’s profitability and scale at that point in time. Without additional historical data, it is not possible to draw conclusions on growth, margin stability, or operational efficiency improvements.
Net sales
General Mills Inc., net sales by reportable segment
US$ in thousands
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
|---|---|---|---|---|---|---|
| North America Retail | ||||||
| Convenience Stores & Foodservice | ||||||
| Europe & Australia | ||||||
| Asia & Latin America | ||||||
| Pet | ||||||
| Total |
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).
The analysis of the annual reportable segment net sales data reveals several key trends across different geographic and business segments over the period from 2015 to 2019.
- North America Retail
- This segment experienced a consistent decline in net sales from 11,612,100 thousand US dollars in 2015 to 9,925,200 thousand US dollars in 2019. The trend indicates a gradual decrease over the five-year span, suggesting potential challenges in maintaining retail sales volumes or pricing in this core market.
- Convenience Stores & Foodservice
- Sales in this segment showed a slight downward trend initially, decreasing from 1,995,100 thousand US dollars in 2015 to 1,870,000 thousand US dollars in 2017. However, there was a partial recovery in the following years, with sales increasing to 1,969,100 thousand US dollars by 2019. This indicates a degree of resilience and possible growth initiatives succeeding in this channel.
- Europe & Australia
- This segment displayed a fluctuating pattern over the years. Sales decreased from 2,126,500 thousand US dollars in 2015 to a low of 1,824,500 thousand US dollars in 2017. Subsequently, sales recovered somewhat, reaching 1,984,600 thousand US dollars in 2018 before declining again to 1,886,700 thousand US dollars in 2019. The volatility suggests market variability or operational adjustments impacting sales performance.
- Asia & Latin America
- Net sales in this region declined steadily from 1,896,600 thousand US dollars in 2015 to 1,653,300 thousand US dollars in 2019. The downward trend, although less steep than North America Retail, indicates challenges in these emerging markets that may require strategic attention.
- Pet Segment
- The Pet segment data is only available for 2019, reporting net sales of 1,430,900 thousand US dollars. As no prior data is provided, this represents either a new reporting category or a significant expansion. The figure suggests a sizable contribution to the company's portfolio in the latest observed year.
- Total Net Sales
- Total net sales decreased from 17,630,300 thousand US dollars in 2015 to a low of 15,619,800 thousand US dollars in 2017, before recovering to 16,865,200 thousand US dollars in 2019. The overall pattern reflects an initial contraction followed by a partial rebound, indicating some stabilization and growth in later periods despite earlier declines in several segments.
Segment operating profit
General Mills Inc., segment operating profit by reportable segment
US$ in thousands
| May 26, 2019 | May 27, 2018 | May 28, 2017 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
|---|---|---|---|---|---|---|
| North America Retail | ||||||
| Convenience Stores & Foodservice | ||||||
| Europe & Australia | ||||||
| Asia & Latin America | ||||||
| Pet | ||||||
| Total |
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).
The analysis of the segment operating profit data over the reported periods reveals distinct trends across different geographic and business segments.
- North America Retail
- Operating profit showed a generally declining trend from 2,382,700 thousand US dollars in 2015 to a low of 2,217,400 thousand US dollars in 2018, followed by a slight recovery to 2,277,200 thousand US dollars in 2019. This indicates a downward pressure on profitability in this segment with some stabilization occurring in the latest period.
- Convenience Stores & Foodservice
- This segment exhibited steady growth over the analyzed years, increasing from 353,100 thousand US dollars in 2015 to 419,500 thousand US dollars in 2019. The consistent upward trend suggests strengthening performance and possibly improved market presence or operational efficiency in this segment.
- Europe & Australia
- Operating profit in this region declined consistently, starting at 179,400 thousand US dollars in 2015 and falling to 123,300 thousand US dollars by 2019. The downward trajectory points to challenges in these markets, possibly related to competitive pressures or unfavorable economic conditions.
- Asia & Latin America
- This segment showed fluctuating profitability, with a peak at 119,800 thousand US dollars in 2015, a sharp drop to 69,100 thousand in 2016, partial recovery in next years, and again a decline to 39,600 thousand in 2018 before rising to 72,400 thousand in 2019. The irregular pattern suggests volatility and potential difficulties in sustaining consistent profits in these regions.
- Pet Segment
- The Pet segment data is only available for 2019, showing an operating profit of 268,400 thousand US dollars. The inclusion of this segment appears to contribute positively to the overall profitability in the latest period.
- Total Operating Profit
- Total operating profit peaked at 3,035,000 thousand US dollars in 2015 and declined steadily to 2,791,700 thousand US dollars by 2018. However, a notable increase to 3,160,800 thousand US dollars occurred in 2019, potentially driven by the contributions from the Pet segment and the growth in Convenience Stores & Foodservice, offsetting declines in other regions.