General Mills’ Revenue, Profit Grew in 3Q
Golden Valley-based food giant General Mills saw both revenue and profit grow substantially in the company’s third fiscal quarter.
On Wednesday, the company reported quarterly revenue of $4.52 billion, up 8 percent from the same quarter last year. Net income also soared 31 percent to $595.7 million.
In a statement, the company said that the pandemic has likely permanently altered consumers’ shopping patterns.
“General Mills expects that changes in consumer behaviors driven by the Covid-19 pandemic will result in ongoing elevated consumer demand for food at home, relative to pre-pandemic levels,” the company said. “These changes include more time spent working from home and increased consumer appreciation for cooking and baking. The company plans to capitalize on these opportunities, addressing evolving consumer needs through its leading brands, innovation, and advantaged capabilities to generate profitable growth.”
North American retail remained the top sales segment for General Mills. That segment accounted for $2.7 billion of the company’s total revenue.
But the company’s convenience store and food service segment saw a 10 percent decline in the quarter. Company officials attributed that decline to “reduced away-from-home food demand related to the pandemic.”
“Lower consumer traffic and other virus-related restrictions negatively impacted the segment’s key away-from-home channels including restaurants, schools, and lodging,” they said.
The company anticipates a 3.5 percent increase in net sales for the full fiscal year.
“Looking ahead, we remain focused on strengthening our momentum and emerging from the pandemic a stronger company, even better positioned to drive long-term shareholder value,” said chairman and CEO Jeff Harmening.
Meanwhile, General Mills on Tuesday announced plans to sell its controlling interest in its European Yoplait operations to a French dairy cooperative. As part of the deal, General Mills will take full control of the Canadian Yoplait business unit. Harmening said the sale is designed to “reshape” the company’s portfolio and drive long-term profit.