General Mills Reports Reports Higher Quarterly Earnings

By CnAgri2012-09-20 19:37:36 Print

General Mills reported results for the first quarter of fiscal 2013. The period includes two months of incremental contribution from the Yoplait International acquisition completed in July 2011, and three months of results for the Food Should Taste Good, Yoplait Ireland and Parampara Foods businesses acquired during the final quarter of fiscal 2012.

The company says net sales grew 5 percent to $4.05 billion, reflecting contributions from acquired businesses. Segment operating profit grew 6 percent to $769 million.

Net sales for the 13 weeks ended Aug. 26, 2012, grew 5 percent to $4.05 billion. Gross margin as reported was above year-ago levels, but excluding mark-to-market effects underlying gross margin was 40 basis points below year-ago levels.

Total marketing spending in the quarter was weighted toward in-store promotional support for established brands and new product introductions; advertising and media expense was 7 percent below year-ago levels.

First-quarter net earnings attributable to General Mills totaled $549 million and diluted earnings per share totaled 82 cents. These results include a 7-cent per share net benefit from mark-to-market valuation of certain commodity positions, and a 10-cent net benefit related to a discrete tax item.