MINNEAPOLIS - General Mills (NYSE: NYSE:GIS), a leading global food company, announced the appointment of Asheesh Saksena as Chief Strategy & Growth Officer, effective August 26, 2024. Saksena will join the company's Senior Leadership Team and report directly to Chairman and CEO Jeff Harmening.
In his new role, Saksena is tasked with overseeing General Mills' strategic planning process and fostering long-term, sustainable growth. He succeeds Dana McNabb, who was previously appointed Group President, North America Retail.
Saksena brings a wealth of experience to General Mills, having most recently served as Chief Growth Officer at Gap, Inc. (NYSE:GPS) His responsibilities at Gap included managing operations, technology, and the company's growth strategies.
His prior positions include President of Best Buy Health and Chief Strategic Growth Officer at Best Buy Co (NYSE:BBY)., Inc., as well as holding strategy roles at Cox Communications and Time Warner Cable.
His academic background includes a Bachelor of Science in mechanical engineering from Birla Institute of Technology & Science, Pilani, India, and a Master of Business Administration from the University of Delhi, India. Saksena's past board memberships include the Consumer Technology Forum (CES) and the Walker Art Center in Minneapolis, Minn.
Jeff Harmening expressed confidence in Saksena's ability to drive growth, stating that his track record across various industries positions him well to enhance consumer engagement with General Mills' core brands.
General Mills, known for brands like Cheerios, Haagen-Dazs, and Betty Crocker, reported net sales of $20 billion for the fiscal year 2024, with an additional $1 billion from non-consolidated joint venture net sales. The company emphasizes its Accelerate strategy, which focuses on brand building, innovation, leveraging scale, and social responsibility.
This news is based on a press release statement from General Mills.
In other recent news, General Mills' fiscal fourth-quarter 2024 results exceeded consensus expectations, despite facing ongoing volume weaknesses and inflationary pressures. The company's shares were downgraded from Buy to Hold by Argus due to these challenges and a slow-growth forecast.
Additionally, Mizuho and TD Cowen revised their price targets for General Mills, attributing the changes to concerns about growth delay and the company's decision to increase investments for volume growth.
General Mills' Q4 report revealed a significant revenue shortfall and weaker-than-anticipated guidance for fiscal year 2025, with the company's sales growth projection standing at 0-1%. Mizuho lowered the company's EPS for fiscal year 2025 to $4.51 from $4.75.
Despite these challenges, General Mills announced plans to stimulate volume growth through significant investment, with cost savings expected to offset inflationary pressures.
The company has also outlined capital allocation priorities that include internal investment for growth, dividend increases, and potential mergers and acquisitions in the $1 billion to $1.5 billion range.
InvestingPro Insights
As General Mills (NYSE: GIS) welcomes Asheesh Saksena to steer the company's growth trajectory, the firm’s financial health and strategic moves remain a focal point for investors. General Mills boasts a solid track record of returning value to shareholders, as evidenced by its consistent dividend payments over the past 54 years. This commitment to shareholders is further highlighted by the company's recent dividend growth, with an increase of 11.11% in the last twelve months as of Q4 2024, showcasing a reliable income stream for investors.
The company’s dedication to fiscal responsibility is also reflected in its approach to capital management. General Mills has been actively repurchasing shares, signaling management's confidence in the company’s value and future prospects. Moreover, the company's price-to-earnings (P/E) ratio stands at a competitive 14.61, suggesting an attractive valuation relative to earnings. This is complemented by an adjusted P/E ratio that has seen a slight decrease to 13.48, potentially offering a more appealing entry point for value-oriented investors.
While the company's revenue saw a slight decline of 1.18% in the last twelve months as of Q4 2024, General Mills remains profitable over the same period, aligning with analysts' predictions for the company's performance this year. This profitability, paired with a dividend yield of 3.67%, positions General Mills as a potentially attractive option for those seeking both growth and income.
For investors interested in a deeper dive into General Mills' strategic outlook and financial metrics, additional InvestingPro Tips are available, offering comprehensive analysis and guidance. Remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and unlock the full spectrum of insights that InvestingPro has to offer, including a total of 8 additional tips for General Mills at https://www.investing.com/pro/GIS.
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