General Mills has reported a 7% rise in net sales for the second quarter, following another strong performance by its meals and baking unit.
The owner of the Nature Valley and Fibre One brands posted second quarter net sales of $4.7 billion and an operating profit of $917 million, representing a 13% increase.
In the three months ended 29 November 2020, General Mills continued to witness elevated at-home food demand due to the Covid-19 pandemic.
The company’s biggest unit – North American retail – recorded a 9% increase in net sales to $2.92 billion and a 9% jump in operating profit to $702 million.
Within the unit, net sales increased 18% in US meals and baking and 4% in US cereal. US yogurt jumped by 3% and Canada saw improvement with a 7% increase, but the company’s snack sales were down 2%.
The Covid-19 pandemic continued to impact the company’s key away-from-home channels – including restaurants, schools and convenience stores – with the segment declining 14% in net sales and 32% in operating profit.
General Mill’s Europe and Australia unit improved by 8% in net sales, led by growth for Old El Paso Mexican food and Häagen-Dazs ice cream. Meanwhile in Asia and Latin America, net sales grew 5% with strong growth for Yoki meals and snacks, Häagen-Dazs ice cream and Betty Crocker dessert mixes.
The quarter saw another strong performance from the company’s pet unit with 18% growth in net sales and 48% in operating profit.
“We executed very well again in the second quarter, driving strong performance on the top and bottom lines,” said General Mills chairman and CEO, Jeff Harmening.
He added: “In this dynamic environment, I’m proud of the way we’re taking care of our people and serving our consumers with brands they love and trust. We strongly believe that the work we’re doing today to strengthen our brands and capabilities and deepen our connection with consumers will translate to profitable growth and shareholder value creation for the long term.”
The company expects third-quarter demand trends to be generally consistent with recent months and says it will generate continued strong top- and bottom-line growth.
© FoodBev Media Ltd 2020
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