Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

General Mills Inc., consolidated income statement

US$ in thousands

12 months ended:	May 26, 2019	May 27, 2018	May 28, 2017	May 29, 2016	May 31, 2015	May 25, 2014
Net sales	16,865,200)	15,740,400)	15,619,800)	16,563,100)	17,630,300)	17,909,600)
Cost of sales	(11,108,400)	(10,312,900)	(10,056,000)	(10,733,600)	(11,681,100)	(11,539,800)
Gross margin	5,756,800)	5,427,500)	5,563,800)	5,829,500)	5,949,200)	6,369,800)
Selling, general, and administrative expenses	(2,935,800)	(2,752,600)	(2,801,300)	(3,118,900)	(3,328,000)	(3,474,300)
Divestitures gain (loss)	(30,000)	—)	(13,500)	148,200)	—)	65,500)
Restructuring, impairment, and other exit costs	(275,100)	(165,600)	(182,600)	(151,400)	(543,900)	(3,600)
Operating profit	2,515,900)	2,509,300)	2,566,400)	2,707,400)	2,077,300)	2,957,400)
Benefit plan non-service income	87,900)	—)	—)	—)	—)	—)
Interest expense, net of capitalized interest	(527,400)	(385,400)	(302,100)	(311,900)	(328,600)	(318,500)
Interest income	5,600)	11,700)	7,000)	8,100)	13,200)	16,100)
Interest, net	(521,800)	(373,700)	(295,100)	(303,800)	(315,400)	(302,400)
Earnings before income taxes and after-tax earnings from joint ventures	2,082,000)	2,135,600)	2,271,300)	2,403,600)	1,761,900)	2,655,000)
Income taxes	(367,800)	(57,300)	(655,200)	(755,200)	(586,800)	(883,300)
After-tax earnings from joint ventures	72,000)	84,700)	85,000)	88,400)	84,300)	89,600)
Net earnings, including earnings attributable to redeemable and noncontrolling interests	1,786,200)	2,163,000)	1,701,100)	1,736,800)	1,259,400)	1,861,300)
Net earnings attributable to redeemable and noncontrolling interests	(33,500)	(32,000)	(43,600)	(39,400)	(38,100)	(36,900)
Net earnings attributable to General Mills	1,752,700)	2,131,000)	1,657,500)	1,697,400)	1,221,300)	1,824,400)

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 financial performance from 2014 to 2019 is characterized by a period of revenue contraction followed by a partial recovery, alongside strategic cost management and fluctuating net earnings.

Revenue and Gross Profitability: Net sales exhibited a downward trend from 2014 to 2017, declining from 17.91 billion USD to a low of 15.62 billion USD. A recovery phase began in 2018 and continued into 2019, with sales reaching 16.87 billion USD. Gross margins mirrored this trajectory, decreasing from 6.37 billion USD in 2014 to a trough of 5.43 billion USD in 2018, before rising to 5.76 billion USD in 2019.
Operating Expenses and Efficiency: Selling, general, and administrative (SG&A) expenses were reduced consistently from 3.47 billion USD in 2014 to 2.75 billion USD in 2018, indicating a sustained effort to lean operational costs. However, restructuring, impairment, and other exit costs showed significant volatility, with a notable spike to 543.9 million USD in 2015, which contributed to a sharp decline in operating profit during that fiscal year.
Operating Profit and Earnings Trends: Operating profit experienced a significant dip in 2015 to 2.08 billion USD but stabilized between 2.51 billion USD and 2.71 billion USD from 2016 through 2019. Net earnings attributable to General Mills fluctuated throughout the period, reaching a peak of 2.13 billion USD in 2018. This peak was notably supported by a substantial decrease in income tax expenses, which dropped to 57.3 million USD in 2018 compared to an average of several hundred million USD in other years.
Financial Costs and Joint Ventures: Net interest expenses remained relatively stable until 2018, after which a sharp increase was observed, reaching 521.8 million USD in 2019. After-tax earnings from joint ventures provided a consistent positive contribution to the bottom line, generally ranging between 72 million USD and 89.6 million USD annually.

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General Mills Inc. (NYSE:GIS)

Income Statement