General Mills Q1 profit drops

American food processing company General Mill has reported a profit of $405.6m in the first quarter of the fiscal year 2012, down from $472.1m in the previous year.

The company’s segment operating profit declined by 3% to $727m, reflecting significantly higher input costs year-over-year, while net sales rose 8.9% to $3.85bn, helped by its recent acquisition of the international Yoplait yogurt business.

Net sales for the snacks division grew 17%, led by Nature Valley and Fiber One snack bar varieties. Sales for the baking products division grew 5% and sales for the Pillsbury division rose 4%.

Meals division net sales were 4% below last year’s levels, reflecting lower shipment volumes for dinner mixes, canned vegetables and soup.

Yoplait division net sales declined 3%, while net sales for the Small Planet Foods division grew by 13%, led by Cascadian Farm cereal and Larabar varieties.

General Mills CEO Ken Powell said the company’s net sales grew 6% before the Yoplait acquisition, with gains across all three of its business segments.

"This reflects good net price realisation, resilient consumer demand for our established products and good early response to new items launched during the quarter," Powell added.