General Mills CEO Ken Powell today (19 March) hailed a “terrific” three months at the US food giant after seeing third-quarter sales and earnings rise.
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The company booked a 43% jump in operating profit to US$695.4m for the period to 24 February. Net sales climbed 11.5% to US$3.4bn, as sales in the US rose 9%.
“Our product innovation and consumer marketing investments are driving strong growth on the top line,” Powell said. “Cost-saving efforts, together with pricing actions, are offsetting significantly higher input costs and protecting our margins. This performance has us on pace to deliver strong sales and earnings growth for fiscal 2008 in total.”
General Mills’ profits in the US rose 9%. Snack sales climbed 16% thanks to Nature Valley grain snacks and Fiber One bars. Sales from the Yoplait brand, to which General Mills holds the US licence, increased by 14%.
The company’s international sales rose 20%, although the increase was boosted by exchange rate fluctuations. Sales in Europe climbed 17%, while revenue in Latin America, South Africa and in Asia-Pacific rose at “strong double-digit rates”, General Mills said.
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By GlobalDataNet sales for the company’s joint ventures rose to US$298m from $249m a year earlier. Cereal Partners Worldwide, General Mills’ cereals business with Nestle, saw net sales grow 21%.
Revenue from General Mills’ Haagen-Dazs joint ventures in Asia grew 10%.
“Our businesses are healthy and growing, and financial results through the first nine months have exceeded our plans,” Powell added.
