Sustainable Performance: Delivering Balanced Results
General Mills strives to maximize returns on three levels - environmental, social, and economic performance. We recognize that our performance is the aggregate of all of our actions, not just the ones directly linked to financial outcomes. Our success in these areas propels our ability to nourish the lives of each of our stakeholders. A summary of our current performance and new goals are described below.
Financial Performance
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What We've Done
Fiscal year 2013 provided challenges and opportunities for the Company. Net sales grew 7%, largely consisting of growth in new businesses and healthy product offerings. Domestic sales growth was driven by new healthy alternatives such as Honey Nut Cheerios Medley Crunch and established favorites such as Lucky Charms and Progresso. Our international segment saw double-digit growth in Haagen Dazs ice cream and Yoki brands. Our cash flow increased 22%, with the year ending on positive momentum allowing us to exceed shareholder expectations.
Complete information regarding financial performance can be found in the 10-K.
Where We Want To Go
Our financial focus for the future is founded on our renewed commitment on improving established product sales and segment operating margins. We anticipate increasing research and development and marketing associated with our established product lines in order to revitalize their standing with consumers. We expect revenues to exceed $18 billion for FY 2014. Our second priority is on our holistic margin management efforts, which focuses on using cross functional teams to eliminate non-value added costs, is expected to increase operating margins by low single-digits for the next three fiscal years.
Fiscal year 2013 provided challenges and opportunities for the Company. Net sales grew 7%, largely consisting of growth in new businesses and healthy product offerings. Domestic sales growth was driven by new healthy alternatives such as Honey Nut Cheerios Medley Crunch and established favorites such as Lucky Charms and Progresso. Our international segment saw double-digit growth in Haagen Dazs ice cream and Yoki brands. Our cash flow increased 22%, with the year ending on positive momentum allowing us to exceed shareholder expectations.
Complete information regarding financial performance can be found in the 10-K.
Where We Want To Go
Our financial focus for the future is founded on our renewed commitment on improving established product sales and segment operating margins. We anticipate increasing research and development and marketing associated with our established product lines in order to revitalize their standing with consumers. We expect revenues to exceed $18 billion for FY 2014. Our second priority is on our holistic margin management efforts, which focuses on using cross functional teams to eliminate non-value added costs, is expected to increase operating margins by low single-digits for the next three fiscal years.
Social Performance
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What We've Done
In fiscal 2013 we pursued numerous initiatives world-wide to enhance the lives or key stakeholders. We implemented a pilot project in Peru to improve agronomy practices of suppliers, creating value for these suppliers. We also worked with our Chinese corn farmers to raise household incomes across the village. This resulted in a ripple effect of economic benefits across the surrounding area. These are just two programs that highlight how we seek to benefit stakeholders in all communities.
Complete information regarding social performance can be found in the Global Responsibility Report.
Where We Want To Go
We will continually work to create improvements for all key stakeholders, internally and externally, across our value chain. Through our holistic value creation strategy, we are building a model for sustainable development focused on origin-direct investment to boost incomes of smallholder farmers and raise living standards in their communities.
In fiscal 2013 we pursued numerous initiatives world-wide to enhance the lives or key stakeholders. We implemented a pilot project in Peru to improve agronomy practices of suppliers, creating value for these suppliers. We also worked with our Chinese corn farmers to raise household incomes across the village. This resulted in a ripple effect of economic benefits across the surrounding area. These are just two programs that highlight how we seek to benefit stakeholders in all communities.
Complete information regarding social performance can be found in the Global Responsibility Report.
Where We Want To Go
We will continually work to create improvements for all key stakeholders, internally and externally, across our value chain. Through our holistic value creation strategy, we are building a model for sustainable development focused on origin-direct investment to boost incomes of smallholder farmers and raise living standards in their communities.
Environmental Performance
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What We've Done
In fiscal 2013, our most significant improvements were in the areas of GHG, transportation fuel usage and packaging. Since 2005, we have been able to reduce our energy usage rate by 10% and reduce our GHG emissions rate by 20%. However, our analysis of a key performance metrics and increase water usage rate by 22%.
Complete information regarding environmental performance can be found in the Global Responsibility Report.
Where We Want To Go
We continue working toward our fiscal 2015 goal of achieving significant, measurable reductions in energy usage, greenhouse gas (GHG) emissions, water usage and other sustainability metrics. We would like to focus primarily on reducing our water usage rate by improving production processes as well as encouraging our suppliers to be environmentally conscious.
In fiscal 2013, our most significant improvements were in the areas of GHG, transportation fuel usage and packaging. Since 2005, we have been able to reduce our energy usage rate by 10% and reduce our GHG emissions rate by 20%. However, our analysis of a key performance metrics and increase water usage rate by 22%.
Complete information regarding environmental performance can be found in the Global Responsibility Report.
Where We Want To Go
We continue working toward our fiscal 2015 goal of achieving significant, measurable reductions in energy usage, greenhouse gas (GHG) emissions, water usage and other sustainability metrics. We would like to focus primarily on reducing our water usage rate by improving production processes as well as encouraging our suppliers to be environmentally conscious.