General Mills has posted a 27% rise in third-quarter operating profit, as it continues to benefit from elevated at-home food demand driven by the pandemic.
The company recorded operating profit of $827 million for the three months ended 28 February 2021. Meanwhile, net sales increased by 8% to $4.5 billion.
The owner of Cheerios continues to advance its Accelerate strategy to drive long-term profitable growth and shareholder value. It aims to prioritise its core markets and reshape its portfolio, focusing on local brands that have the best prospects for profitable growth.
Yesterday, General Mills entered into a memorandum of understanding to offload its 51% controlling stake in its European Yoplait operations to Sodiaal, in exchange for full ownership of the Canadian Yoplait business.
The company’s biggest unit – North American retail – recorded a 9% net sales increase to $2.37 billion. The unit’s meals and baking segment rose 15% and US cereal went up by 9%. Canada posted 13% net sales growth and yogurt 3%, but the company’s snack unit declined by 3%.
In Europe and Australia, General Mills recorded 15% growth, led by strong performance by its Old El Paso Mexican food and Häagen-Dazs ice cream.
The company witnessed net sales go up by 12% in Asia and Latin America, driven by strong growth for Yoki meals and snacks, Kitano seasonings in Brazil, and Betty Crocker dessert mixes in the Middle East. Häagen-Dazs ice cream net sales in Asia were also up double-digits.
However, reduced away-from-home food demand meant the company’s convenience stores and foodservice unit fell by 10%.
“We’ve made good progress on our fiscal 2021 priorities, including competing effectively, fuelling investment in our brands and capabilities, and reducing our leverage,” said General Mills chairman and CEO, Jeff Harmening.
”Looking ahead, we remain focused on strengthening our momentum and emerging from the pandemic a stronger company, even better positioned to drive long-term shareholder value.”
General Mills plans to continue capitalising on the ongoing elevated consumer demand for food at home, as well as the rise in cooking and baking.
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