Second-quarter earnings for fiscal 2013
General Mills announced second-quarter earnings today, and executives provided updates on the company’s businesses around the world. Our full press release can be found on our website and you can access the webcast for investors.
General Mills modestly raised guidance for the full fiscal year, to a range of $2.65 to $2.67.
“We had a very solid second quarter, fueled by strong operating profit gains across all three segments of our business,” Ken Powell, chairman and CEO of General Mills, told investors today.
U.S. Retail segment performance was driven by new product news and innovation. Net sales and segment operating profit performance improved in the second quarter. U.S. Retail pound volume also increased 2 percent.
A few highlights:
• Yoplait Greek 100 calorie yogurt was launched in August, and all six stock keeping units (skus) are turning in the top third of the total yogurt category.
• Soup season is under way, and first-half Progresso retail sales increased 7 percent, driven by our core ready-to-serve soup business.
• And sales for our Snacks division increased at a double-digit rate. In January, we’ll be expanding our Fiber One franchise with the launch of Fiber One Protein bars. They have at least 6 grams of protein per serving, and 20 percent of the adult daily value for fiber – at 140 calories or fewer per bar.
Around the world, General Mills’ international segment saw good growth across all four of the geographic regions — Canada, Europe, Latin America, and Asia Pacific.
• In China, our Häagen-Dazs team posted another terrific mooncake event as part of the mid-Autumn festival. We’re also opening 50 new Häagen-Dazs shops this fiscal year. In total, net sales for Häagen-Dazs are up 20 percent through the first half of the year.
• And since acquiring Yoki in Brazil this summer, we’re posting double-digit sales growth in some of our larger categories, including popcorn, seasonings and side dishes.
• We’re expanding the Nature Valley brand in the U.K. with Sweet and Nutty bars in Peanut and Almond flavors.
In our Bakeries & Foodservice segment, net sales are down 1 percent , however, operating profit is up 18 percent driven by lower wheat costs year over year, favorable mix and grain merchandising earnings.
In this segment, we recently introduced a Greek version of Yoplait Parfait Pro – this product gives foodservice operators an easy way to prepare layered yogurt parfaits.
And we have a great lineup of new snack products hitting convenience stores in the second half, including Nature Valley Protein bars, Gardetto’s snack crackers, and Betty Crocker Dessert Bites.
Looking to the second half of fiscal 2013, Powell said, “We are working to build on our good performance year-to-date. We’re launching a promising slate of new products in our core U.S. market. And we have strong levels of advertising and in-store merchandising planned to support new and existing products in markets worldwide.”
Editor’s Note: This post contains non-GAAP financial information and forward looking statements regarding future results. Please see our press release dated Dec. 19, 2012 for a reconciliation of these non-GAAP measures and for risk factors that could affect the results anticipated in these forward looking statements.