US – American multinational manufacturer and marketer of branded consumer foods, General Mills has reported a 7% rise in net sales for the second quarter, following another strong performance by its meals and baking unit.
According to financial results posted by the Nature Valley and Fibre One brands owner, second quarter net sales amounted to US$4.7 billion while operating profit rose 13% to reach US$917 million.
In the three months ended 29 November 2020, General Mills continued to witness elevated at-home food demand due to the Covid-19 pandemic.
The company’s biggest unit – North American retail – recorded a 9% increase in net sales to US$2.92 billion and a 9% jump in operating profit to US$702 million.
The company further noted that within the North American retail unit, net sales increased 18% in US meals and baking and 4% in US cereal.
US yogurt, on the other hand, jumped by 3% and Canada saw improvement with a 7% increase, but the company’s snack sales were down 2%.
General Mills however, noted that Covid-19 pandemic continued to impact the company’s key away-from-home channels – including restaurants, schools and convenience stores – with the segment declining 14% in net sales and 32% in operating profit.
General Mill’s Europe and Australia unit improved by 8% in net sales, led by growth for Old El Paso Mexican food and Häagen-Dazs ice cream.
Meanwhile in Asia and Latin America, net sales grew 5% with strong growth for Yoki meals and snacks, Häagen-Dazs ice cream and Betty Crocker dessert mixes.
The quarter saw another strong performance from the company’s pet unit with 18% growth in net sales and 48% in operating profit.
Commenting on the company’s performance, General Mills chairman and CEO, Jeff Harmening, said: “We executed very well again in the second quarter, driving strong performance on the top and bottom lines”.
Harmening further noted that he was proud that his company was taking care of its people and serving its customers with brands they love despite of the challenging environment that it was operating in.
“We strongly believe that the work we’re doing today to strengthen our brands and capabilities and deepen our connection with consumers will translate to profitable growth and shareholder value creation for the long term,” Harmening added.
The company expects third-quarter demand trends to be generally consistent with recent months and says it will generate continued strong top- and bottom-line growth.
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