USA: General Mills Q1 profits jump
Cereal maker General Mills has reported a sharp rise in earnings for the first quarter ended 28 August.
Net sales for the 13 weeks ended 28 August 2005, increased 3 percent to $2.66bn over the same period a year ago, as unit volume grew 1% worldwide.
Earnings after tax totalled $252m, up from $183m last year.
"Our year is off to a strong start," said chairman and CEO Steve Sanger. "We are achieving our planned price realization and margin growth across all three of our operating segments."
Net sales for General Mills' domestic retail operations grew 2% to $1.80bn for the quarter, reflecting net price realization and favourable mix of sales. Volume matched strong year-ago levels, that were up 4%. Operating profits increased 15% to $406m, reflecting favourable production mix and productivity.
Yoplait led net sales growth, with a 19% increase driven by Yoplait Light, and new items including Chocolate Whips and Yoplait and Go-Gurt Smoothies. Meals division net sales grew 4% led by Progresso soup and Green Giant frozen vegetables. Snacks net sales grew 3%, with good performance by the
Total consumer purchases of the company's products also grew in the quarter, as composite retail sales for major product lines were up 1%.
Net sales for General Mills' consolidated international businesses grew 11%t to $446m. Unit volume increased 7%, and foreign exchange contributed 3 points of growth. Operating profits grew to $61m, up from $36m last year, as the result of sales growth and margin improvement driven by productivity.
First quarter net sales for the company's Bakeries and Foodservice segment totalled $417m compared to $421m a year earlier. Operating profits reached $33m, up from $23m in last year's first quarter as favourable product mix and operating efficiencies offset a 3% volume decline.
Companies: General Mills
US food group General Mills has announced plans for a double-digit increase in ad spend in the second half of the current fiscal year. The company also noted that cost pressures were continuing to wei...
General Mills announced that net sales for the second quarter of the 2006 fiscal year increased by 3% to US$3.27bn net diluted earnings...
Cereal company General Mills has said it expects an increase in net earnings for the second quarter. It is due to announce second quarter results on 22 December....
US food company General Mills has unveiled a 25-foot-tall Jolly Green Giant billboard in New York City's Times Square to officially launch its multi-million dollar marketing campaign for the Green Gia...
US cereal company General Mills has reported rises in sales and profits for the 2005 financial year, but fourth quarter sales were down....
Activist doctors' group Physicians Committee for Responsible Medicine has announced that it has filed two major lawsuits to stop a multimillion-dollar advertising campaign claiming that milk facilitat...
General Mills' latest advertising campaign aims to raise children's awareness of the importance of breakfast. However, although the company is hoping to be seen as a champion of children's health, it ...
Breakfast cereal maker Weetabix is in advanced talks to sell two of its American businesses for a total of about $110m, according to the Times newspaper....
- General Mills sales woes continue - analysis
- Why personalisation will take-off in US food
- Comment: Meal kits in US - don't believe the hype
- US food next wave on display at Winter Fancy Food
- Column: Kraft Heinz, Unilever and sustainability
- Unilever 'lining up spreads sale'
- UK own-label firm Park Cakes sold in MBO
- Kraft Heinz cuts jobs in US, Canada
- Immigration crackdown "risk" for US dairy industry
- BRF plant suspended amid bribery allegations