US-based food company General Mills has reported that its net earnings increased 1.8% to $398.4m for the third quarter of 2013, compared to $391.5m for the same period in 2012.
The modest growth in profit was due to one-time charges and margin pressure that were more than offset by higher overseas sales, primarily from its new businesses - Yoki and Yoplait Canada.
For the quarter ended 24 February 2012, the company posted 7.5% increase in net sales to $4.43bn, compared to $4.12bn in the previous year.
General Mills chairman and chief executive officer Ken Powell said the third-quarter results reflected gains across the company's worldwide operations.
"Our sales and volume growth reflects contributions from new businesses and from established products," Powell said.
"Operating profit results for the quarter were particularly good, with double-digit increases for both our U.S. Retail and Bakeries and Foodservice segments," Powell added.
In the US retail segment, net sales increased 2.1% to $2.66bn, compared to $2.6bn in 2012, driven by net price realization and mix, while operating profit rose 12.6% to $577.3m, compared to $512.5m. International Segment posted 24.5% increase in sales to $1.29bn, compared to $1.04bn in the earlier year.
In the Bakeries and Foodservice Segment, there was a marginal rise in net sales to $469.9m, while operating profit increased 13% to $75m.
For the entire fiscal 2013, the company continues to estimate input cost inflation of 3%, adjusted diluted earnings per share (EPS) to a range of $2.66 to $2.68, excluding mark-to-market effects, a net tax benefit recorded in the first quarter, and restructuring and integration costs.
