General Mills has recorded net sales of $4.2 billion flat to last year in its third-quarter results with lower Häagen-Dazs sales in Asia driven by the impact of the Covid-19 virus.
Lower Häagen-Dazs ice cream sales were recorded in Asia as well as in its Europe and Australia segment reportedly due to the effect of the Covid-19 virus outbreak on consumer traffic in Häagen-Dazs shops and foodservice outlets.
In terms of its Asia and Latin American segment, net sales fell 5% with lower ice cream net sales in Asia in February partially offset by higher net sales in Latin America.
General Mills’ Europe and Australia sales fell 2% as the sector saw declines in Yoplait yogurt and Häagen-Dazs cream offset by growth for Nature Valley and Fibre one snack bars and Old El Paso Mexican food.
The results, which ended 23 February 2020, showed the company’s operating profit total $651 million, essentially in line with the prior year.
The company recorded organic net sales flat to last year, with strong growth in its pet segment largely offset by declines in its North America retail and convenience stores and foodservice units.
Third-quarter net sales in the firm’s largest unit, North America retail, totaled $2.5 billion, down 1% from the prior year. This was driven by a 2% sales decrease in its US meals and baking unit, a 1% decrease in its US cereal, snacks and yogurt segments, similar to that of its last report, offset by a 6% rise in its Canada operating unit.
Net sales in its North American convenience stores and foodservice segment declined 2% due to declines on products such as flour and mixes, partially offset by low-single digit growth for its cereal, frozen baked goods and yogurt.
“Our third-quarter results were broadly in line with our expectations, except for the negative impact in Asia of the Covid-19 virus outbreak,” said General Mills chairman and CEO Jeff Harmening.
Harmening added: “During the rapidly evolving situation related to Covid-19, our number one objective continues to be the health and safety of our consumers, employees, and other stakeholders. General Mills plays a critical role in making food to meet the needs of our consumers, and I’m proud of the way we’ve partnered with our retail customers in recent weeks to service consumers’ increased demand for food at home during this unique time.
“Looking forward, we’ll remain agile to adapt to changing demand patterns around the world as circumstances with Covid-19 continue to develop.”
