General Mills Profit Beats on Cost Cutting

Industries Reuters

General Mills, the maker of Cheerios cereal and Yoplait yogurt, reported a better-than-expected quarterly profit, as its cost-cutting programs helped reduce the impact of weaker sales in the United States.

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General Mills, which gets about 60 percent of its sales from the United States, said lower volume sales reduced sales growth by 8 percentage points in the quarter ended Feb. 28.

The company has been cutting jobs and selling plants and less-profitable brands to reduce expenses.

The Minneapolis-based company is also investing in gluten-free foods and cutting back on salt in its products to combat a shift in consumer preferences to less-processed foods.

Net income attributable to General Mills rose to $361.7 million, or 59 cents per share, in the third quarter, from $343.2 million, or 56 cents per share, a year earlier.

Excluding items, the company earned 65 cents per share.

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The company's net sales fell 8 percent to $4 billion, falling for the third quarter in a row.

Analysts on average had expected earnings of 62 cents per share on revenue of $4.08 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Sriraj Kalluvila)




(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Sriraj Kalluvila)