General Mills has reported third-quarter net sales of $4.5 billion, which it says “essentially matched year-ago results” from the same quarter.
The company has also raised its guidance for fiscal 2022, citing “confidence in our plans and positive momentum on our business” as key motivators.
Organic net sales increased 4% while operating profit decreased 1% to $815 million, driven primarily by “lower gross profit dollars and less favourable investment activity”.
General Mills’ North America retail segment increased 1% to $2.81 billion, as a result of favourable net price realisation and mix. Net sales were up 4% for morning foods (which includes its cereal and yogurt units) and up 3% in its snacks segment.
Net sales in its meals and baking solutions and Canadian units were down 2%, respectively.
In its third-quarter results, General Mills saw international net sales decrease 23% to $721 million, including a “20-point headwind” from the divestitures of its European yogurt and dough businesses.
Häagen-Dazs ice cream sales increase by 9% in Japan, driven by strong core performance and improved distribution.
The company says it intends to tap into the continuing trend for at-home consumption occasions (including cooking and baking), brought about by the pandemic.
Jeff Harmening, General Mills chairman and CEO, commented: “Our solid execution in a highly volatile environment enabled us to close the third quarter with improved momentum. Demand for our brands remains robust and our team has shown great agility to overcome disruptions throughout the supply chain and deliver for our customers and consumers. We expect to drive strong growth in the fourth quarter, fueled by accelerating net price realisation. With confidence in our plans and positive momentum on our business, we’re raising our guidance for fiscal 2022.”
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