Acquisitions lead to earnings gain at General Mills

by World Grain Staff
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MINNEAPOLIS, MINNESOTA, U.S. — Strength from recent acquisitions, including Yoki Alimentos in Brazil and Yoplait Canada, helped contribute to a 2% increase in third-quarter income at General Mills, Inc.

For the quarter ended Feb. 24, the company had earnings of $398.4 million, equal to 61¢ per share on the common stock, which compared with earnings of $391.5 million, equal to 61¢ per share, during the same quarter of the previous year. Sales for the quarter were $4.43 billion, up 8% from $4.12 billion during the same quarter of the previous year.

“Our sales and volume growth reflects contributions from new businesses and from established products,” said Ken Powell, chairman and chief executive officer. “Operating profit results for the quarter were particularly good with double-digit increases for both our U.S. Retail and Bakeries and Foodservice segments.”

Operating profit for the U.S. Retail segment was $577.3 million, up 13% from $512.5 million during the same quarter of the previous year. Sales for the segment were $2.664 billion, up 2% from $2.609 billion during the same quarter of the previous year.

The International segment had an operating profit of $96.1 million, up slightly from $96 million during the same quarter of the previous year. The segment had sales of $1.296 billion, up 25% from $1.041 billion during the same quarter of the previous year.

The Bakeries and Foodservice segment had an operating profit of $75.4 million, up 13% from $66.5 million during the same quarter of the previous year. The segment had sales of $469.9 million, up slightly from $469.4 million during the same quarter of the previous year.

“We are continuing to see slow but steady improvement in the operating environment,” Powell said. “Trends in our established businesses are improving, and integration of our new businesses is going smoothly. We’re preparing to launch a promising slate of new products as our new fiscal year begins this summer, and our plans for fiscal 2014 call for high single-digit eps growth, consistent with our long-term model.”


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