US-based food company General Mills has reported that its profit for the first quarter ended 26 August 2012 soared 35.3% to $548.9m, up from $405.6m in 2011, helped by acquisitions and improving market conditions.
Net sales increased 5% to $4.05bn, compared to $3.84bn the previous year.
The results during the quarter were driven by the acquisition of yogurt brand Yoplait International in July 2011, and the acquisition of three businesses - Food Should Taste Good, Yoplait Ireland and Parampara Foods - during the final quarter of 2012.
General Mills chairman and chief executive officer Ken Powell said that with this start, the company is on track to achieve its fiscal 2013 targets.
"Results for the first quarter were broadly consistent with our plans, and included sequential improvement in our volume and gross margin trends from the fourth quarter of 2012," Powell added.
In the US retail segment, the company's largest revenue contributor, sales declined 0.7% to $2.49bn, while operating profit declined 1.7% to $575m, due to decline in yogurt sales.
International Segment net sales increased 26.8% to $1.09bn, and operating profit rose 55.9% to $125.8m, helped by the acquisition of Yoplait International.
In the Bakeries and Foodservice Segment, net sales declined 2% to $471.6m, while operating profit increased 10.3% to $67.7m, due to lower wheat costs and higher earnings from grain merchandising.
For its fiscal 2013, General Mills noted that it will put advertising support behind its new items, and stood by its 2013 adjusted earnings forecast of $2.65 per share.
