General Mills said that net sales for the second quarter of 2007 were US$3.47bn, up 5% from the same period a year ago.
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The manufacturer, whose brands include Cheerios and Yoplait in the US, said that unit volume grew 3% worldwide, with segment operating profits increasing 11% to $714m.
Net earnings after tax rose 4% to $385m, and diluted earnings per share (EPS) totalled $1.08, up 11% from 97 cents in last year’s second quarter.
Through the first six months of fiscal 2007, General Mills’ net sales increased 6% to $6.33bn. Earnings after tax totalled $652m, up 5% from last year’s first half results.
General Mills chairman and CEO Steve Sanger said: “Our results continue to reflect a combination of broad-based sales growth and margin expansion. In the second quarter, all three of our business segments posted good unit volume gains and even stronger growth in net sales.
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By GlobalData“Gross margin improved and segment operating profits were up 11% for the period. This solid performance followed a good first quarter and puts us ahead of our plan targets for the first half of the year.”
General Mills’ diluted earnings per share guidance for 2007 has increased to $3.09 to $3.13 per share. Previously, the company had targeted diluted EPS of between $3.03 to $3.08.
“Our plans for the second half of this year anticipate continuing input cost inflation, along with year-over-year increases in consumer marketing spending and new product activity,” said Sanger. “Nevertheless, as a result of our good first half performance, we are raising our fiscal 2007 financial targets.”
