US food giant General Mills said today (27 June) the steepest rise in input costs it has experienced in over 30 years weighed on its full-year earnings.
For the 12 months ended 27 May, net profit slid 12.8% to US$1.57bn. Operating profit dropped 7.6% to $2.56bn.
Net sales grew 12% to reach $16.7bn. General Mills' investment in Yoplait, which was completed last year, contributed 7 points of the net sales growth.
"Fiscal 2012 was characterized by the highest input-cost inflation we've experienced in more than three decades, and this cost pressure constrained our earnings growth," said chairman and CEO Ken Powell. "In addition, slow economic recovery kept many consumer budgets under pressure."
General Mills, which has continued to suffer amid increasing input costs and a stagnant domestic market, last month announced it was cutting 850 jobs to improve efficiency and allow it to re-invest in other parts of its business.
Despite this, the firm has said it expects fiscal 2013 to be "another year of good growth" for the company, reflecting sales and profit increases from its base business along with contributions from newly acquired operations.
