General Mills Reports 3Q Net Income of $398.4 Million, Up From $391.5 Million in 3Q 2012
Date Posted: March 20, 2013
Minneapolis, MNGeneral Mills (NYSE: GIS) reported March 20 results for the third quarter of fiscal 2013. Contributions from new businesses in this period primarily reflect operating results for Yoki Alimentos in Brazil and Yoplait Canada.
Fiscal 2013 Third Quarter Financial Summary
Net sales grew 8 percent to $4.43 billion. New businesses contributed 6 points of net sales growth. Excluding new businesses, net sales grew 2 percent with 1 point of growth from higher pound volume.
Segment operating profit grew 11 percent to $749 million.
Diluted earnings per share (EPS) totaled 60 cents, up from 58 cents a year ago.
Adjusted diluted EPS, which excludes certain items affecting comparability, totaled 64 cents this year compared to 55 cents in last year’s third quarter. (Please see Note 10 to the consolidated financial statements below for reconciliation of this non-GAAP measure.)
Net sales for the 13 weeks ended Feb. 24, 2013, grew 8 percent to $4.43 billion.
Pound volume contributed 9 points of net sales growth, primarily reflecting the addition of Yoki and Yoplait Canada.
Volume growth excluding new businesses contributed 1 percentage point of growth.
Net price realization and mix reduced the net sales growth rate by 1 percentage point.
Foreign currency exchange did not have a material effect on sales growth in the quarter.
Gross margin was below year-ago levels primarily reflecting higher input costs.
Total marketing spending in the quarter was weighted toward in-store promotional support for new product introductions and established brands; advertising and media expense was below strong year-ago levels.
Total segment operating profit increased 11 percent to $749 million.
Third-quarter net earnings attributable to General Mills grew to $398 million and diluted EPS increased to 60 cents.
Adjusted diluted EPS, which excludes certain items affecting comparability (see Note 10 below) grew 16 percent to 64 cents.
Chairman and Chief Executive Officer Ken Powell said the third-quarter results reflected gains across the company's worldwide operations.
"Our sales and volume growth reflects contributions from new businesses and from established products. Operating profit results for the quarter were particularly good, with double-digit increases for both our U.S. Retail and Bakeries and Foodservice segments," he said.
Products making the strongest contributions to U.S. Retail net sales growth in the third quarter included new items such as Honey Nut Cheerios Medley Crunch cereal, Fiber One Protein bars, Yoplait Greek 100 yogurt and frozen Green Giant Seasoned Steamers vegetables, along with established brands such as Cheerios and Lucky Charms cereals, Progresso ready-to-serve soups, Nature Valley grain snack bars, Totino's frozen snacks and pizzas, Betty Crocker SuperMoist cake and pouch cookie mixes, and Pillsbury Grands! refrigerated biscuits.
In the Bakeries and Foodservice segment, the Yoplait Parfait Pro yogurt line, Pillsbury hot breakfast items, and new Minibon cinnamon rolls made strong contributions to third-quarter sales.
Yoplait yogurt varieties in Europe, along with Häagen-Dazs super-premium ice cream and Wanchai Ferry frozen dim sum varieties in China helped drive International sales growth.
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