General Mills saw its profit for the fourth quarter nearly double, even as sales volumes declined in all segments except pet food.
Net sales for the quarter increased 8% year-over-year, to $4.9 billion, and profit was $1 billion, an 85% increase. The operating profit margin reached 20.8 percent, up 870 basis points, or 8.7 percentage points, from last year.
These results are due largely to General Mills increasing its product prices, through both list price increases and conversions to smaller package sizes. Executives predict double-digit inflation will continue next year.
For the quarter, of General Mills’ major segments, pet food was the only one that showed an increase in year-over-year volume. All others – North American retail and foodservice, and international – were down from 2 to 33 basis points (0.02 to 0.33 percentage points). For the full year, pet food showed the largest volume gain, at 11 basis points.
“Fiscal 2022 was another successful year for General Mills, marking the fourth consecutive year that we’ve delivered results that met or exceeded our targets for top and bottom-line growth and cash generation,” Chairman and CEO Jeff Harmening said in a statement.