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General Mills Reports Quarterly Sales Up, Profits Down

Targets for growth include the Häagen-Dazs, Old El Paso and Blue Buffalo brands.

General Mills

(PRNewswire/ -- General Mills recently unveiled financial results for their Fiscal Year second quarter, which ended November 25. Some key findings included:

  • General Mills Chairman and Chief Executive Officer Jeff Harmening stated that, "Our cost and capital discipline has driven profit growth ahead of our expectations in the first half. We're taking actions to strengthen our second-half topline trends in North America Retail, led by U.S. cereal and snacks."
  • The company will look to accelerate growth for its Häagen-Dazs and Old El Paso brands, as well as its portfolio of natural and organic food brands.
  • Net sales increased five percent to $4.41 billion and were up seven percent in constant currency, driven by the addition of Blue Buffalo organic dog food.
  • Overall organic net sales decreased one percent, driven by a decline in the North America Retail segment.
  • Total sales increased seven percent to $8.50 billion
  • Operating profit totaled $1.15 billion, down 13 percent from the prior year
  • Second-quarter net sales for General Mills' North America Retail segment totaled $2.68 billion, down three percent from the prior year, primarily reflecting lower merchandising activity in the U.S. cereal operating unit and lower volume in U.S. snacks. 
  • Organic net sales declined three percent.  
  • General Mills is planning significant expansion of Blue Buffalo in the second half, including doubling distribution. Second-half operating profit margins will also benefit from accelerated synergies and cost savings initiatives.
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