Summary of Important Points from General Mills Conference Call

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Overview of Q4 Result:
• Net sales in fourth quarter increased 8 percent to $4.4 billion; driven by growth in new businesses • Segment operating profit of $722 million, which was 2 percent below last year's result • Adjusted diluted EPS declined 12 percent to $0.53 • Gross margin was down 80 basis points to the range of 31.6 percent and 36.1 percent; driven by the additions of Yoki and Yoplait Canada • Advertising and media expense increased 5 percent • Total expense at $115 million, driven by annual increase in pension expense.
Guidance for 2014
• Expect increase cash returns to shareholders • Total capital investments expected to be around $700 million • Targeted sales for the year is above $18 billion • Operating profit is projected to grow at a mid-single-digit rate • Adjusted diluted earnings per share expected to increase at a high single-digit rate to a range of $2.80 to $2.90 per share • Significant ad campaigns behind Big G stalwarts including Lucky Charms, Reese's Puffs, Cheerios • Expanding the Cheerios franchise in Canada with new Honey Nut Cheerios hardy oak crunch • Expanding the Fiber One franchise with an almond and cluster variety • Increase consumer marketing activity focused on the cholesterol-lowering benefits of the whole grain oats cereal • New flavors will be introduced with new package sizes and new points of distribution • Strong product news and innovation on Old El Paso and Wanchai Ferry internationally
General Mills GIS
opened on Wednesday at $48.07.
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Posted In: EarningsNewsGuidanceEconomicsMarketsReviews
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