General Mills outlines Long-Term Growth Plans.
January 18, 2010
General Mills discussed plans to drive continued sales and earnings growth over the next five years.
“We see key consumer trends and retail customer developments that will shape our future. And we are developing the products and business capabilities that will help us continue to thrive. We have a business portfolio built to deliver quality growth in the years ahead.”
General Mills outlined several strategies to fuel sales growth, including a focus on growing consumer segments such as baby boomers, Hispanics, millennial families, and the rising middle class in emerging markets around the world. The company also said it will continue to follow its successful business model, which uses holistic margin management (HMM) to protect margins and fuel investment in product innovation and consumer marketing. HMM savings from supply chain initiatives alone are targeted at $1 billion over the next three years, and $4 billion over the next decade.
Chairman and Chief Executive Officer Ken Powell said, “We see key consumer trends and retail customer developments that will shape our future. And we are developing the products and business capabilities that will help us continue to thrive. We have a business portfolio built to deliver quality growth in the years ahead.”
The company said it would stay committed to its long-term growth model, which calls for low single-digit annual growth in net sales, mid single-digit growth in segment operating profits, and high single-digit growth in earnings per share. Combined with a targeted dividend yield of 2 to 3 percent, the company believes this level of sales and earnings growth should result in double-digit returns to shareholders over time.
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