General Mills income up 22% on new businesses
MINNEAPOLIS — The addition of Yoplait Canada and the Yoki Alimentos business in Brazil contributed to a 22% increase in income at General Mills, Inc. during the second quarter. Also boosting results during the quarter was strength in Yoplait Greek and Greek 100 calorie yogurt products, Nature Valley protein bars, Peanut Butter Multigrain Cheerios and Progresso Recipe Starters sauces.
For the quarter ended Nov. 25, the company had earnings of $541.6 million, equal to 84c per share on the common stock, which compared with income of $444.8 million, or 69c per share, during the same quarter of the previous year. Sales for the quarter were $4,881.8 million, up 6% from $4,623.8 million during the same quarter of the previous year.
Last month, Don Mulligan, executive vice-president and chief financial officer, told participants at the Morgan Stanley Global Consumers & Retail Conference that the company continues to see “pricing trends moderating and volume trends improving” in the United States as the company laps last year’s significant price increases.
During the quarter the U.S. Retail segment had operating profit of $723.2 million, up 9% from $661.4 million during the same quarter of the previous year. The segment had sales of $2,985 million, up 2% from $2,938.3 million during the previous year.
The Bakeries and Foodservice segment posted operating profit of $96.2 million, up 24% from $77.8 million during the same quarter of the previous year. Sales in the segment eased 1% to $515.6 million from $522.2 million.
“Our U.S. Retail segment posted gains in pound volume, net sales and operating profit,” said Ken Powell, chairman and chief executive officer. “The Bakeries and Foodservice segment generated strong double-digit operating profit growth. And our International segment recorded good sales and profit growth for established businesses in addition to the incremental contributions from Yoki and Yoplait Canada.”
Net income at General Mills in the six months ended Nov. 25 totaled $1,090.5 million, or $1.68 per share, up 28% from earnings of $850.4 million, or $1.31 per share, during the same period of the previous year. Sales for the period were $8,932.8 million, up 5% from $8,471.4 million during the same quarter of the previous year.
The company now expects full-year fiscal 2013 adjusted earnings in the range of $2.65 to $2.67, excluding mark-to-market effects, a net tax benefit recorded in the first quarter and restructuring and integration costs.