US food giant General Mills booked a 12% rise in first-quarter profits as US sales were boosted by growth in the company’s cereal and yoghurt divisions.
The Cheerios and YOPLAIT maker posted net profit of US$472.1m – an increase of 12.2% – for the three months to 29 August.
Net sales were up 1.5% at $3.53bn. US net sales increased 2% to $2.45bn, with General Mills’ Big G cereals division posted a 4% rise in sales. Net sales from Yoplait, for which General Mills holds the US licence, also rose 4%.
Net sales from General Mills’ international business grew “slightly” to $660m. Volume contributed four points of the company’s net sales growth overseas but foreign exchange reduced net sales by four points.
Chairman and CEO Ken Powell: “We’re pleased to see continued growth in volume and net sales across our worldwide businesses. Consumer demand for our established brands remains strong, and new products are making good contributions to our sales results.”