General Mills Profits Increase

NEW YORK - Mar 22/07 - SNS -- General Mills, Inc. reported net, after tax earnings of U.S. $268 million on sales of $3,054 million for the third quarter ending February 25, compared to a net of $246 million on sales of $2,877 million during the same three month period last year.

This lifted net earnings for the first nine months of the current fiscal year to $920 million on sales of $9,381 million, compared to a net of $868 million on sales of $8,849 million during the first three quarters of the previous fiscal year.

Net sales for General Mills' U.S. domestic retail operations grew 5% in the third quarter to $2.11 billion, driven by 5% unit volume growth. Operating profits grew 6% to $447 million, as volume leverage and productivity offset higher input costs.

Net sales for the Meals division grew 10%, led by double-digit growth for Progresso soups along with gains for Helper dinner mixes and Green Giant vegetables. Yoplait division net sales rose 9% as Yoplait Light yogurt varieties and Yoplait Kids yogurt continued to generate strong growth. Baking Products division net sales grew 11% reflecting strong unit volume growth, particularly in nonmeasured channels. The Snacks division posted an 8% net sales gain including introductory volume for new Fiber One bars and continuing growth for Nature Valley snack bars.

Net sales for the Pillsbury USA division rose 3%, led by core refrigerated dough products, Totino's frozen pizza rolls and Toaster Strudel. Big G cereal unit volume matched prior-year levels but net sales declined 4% due to year-over-year differences in the timing of price promotion activity. Net sales for the company's Small Planet Foods organic business grew 15% in the quarter.

Through the first nine months of 2007, net sales for the U.S. Retail segment were up 4% to $6.46 billion, reflecting 3% unit volume growth and net price realization. Segment operating profit grew 7% to $1.49 billion year-to-date.

Subscribers can read the full text of the article by Clicking here