General Mills reported results for the third quarter of fiscal 2013. Contributions from new businesses in this period primarily reflect operating results for Yoki Alimentos in Brazil and Yoplait Canada.
Net sales for the 13 weeks ended Feb. 24, 2013, grew 8 percent to $4.43 billion. Pound volume contributed 9 points of net sales growth, primarily reflecting the addition of Yoki and Yoplait Canada. Volume growth excluding new businesses contributed 1 percentage point of growth. Net price realization and mix reduced the net sales growth rate by 1 percentage point. Foreign currency exchange did not have a material effect on sales growth in the quarter. Gross margin was below year-ago levels primarily reflecting higher input costs. Total marketing spending in the quarter was weighted toward in-store promotional support for new product introductions and established brands; advertising and media expense was below strong year-ago levels. Total segment operating profit increased 11 percent to $749 million. Third-quarter net earnings attributable to General Mills grew to $398 million and diluted EPS increased to 60 cents. Adjusted diluted EPS, which excludes certain items affecting comparability grew 16 percent to 64 cents.
Chairman and chief executive officer Ken Powell said, in a prepared statement, that 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. Operating profit results for the quarter were particularly good, with double-digit increases for both our U.S. Retail and Bakeries and Foodservice segments," he said.
