General Mills posts quarterly operating profit of $827 million, up 27% on-year

General Mills posted an operating profit of $827 million for the three months ended 28 February 2021, up 27 percent, mainly due to the increased pandemic-driven at-home food demand.

Meanwhile, net sales increased by 8 percent to $4.5 billion.

Based on its Accelerate strategy, General Mills will prioritize its core markets and reshape its portfolio by focusing on local brands with the best profit potential.

General Mills is offloading its 51 percent controlling stake in its European Yoplait operations for full Canadian Yoplait business ownership.

The company’s North American retail unit, its biggest, posted a 9 percent net sales increase to $2.37 billion. The unit’s baking and meals segment rose 15 percent and US cereal jumped by 9 percent.

Its Canadian unit recorded a 13 percent net sales growth and its yogurt segment went up 3 percent. However, the company’s snack unit declined by 3 percent.

In Europe and Australia, General Mills posted a 15 percent growth, led by the robust sales of its Old El Paso Mexican food and Häagen-Dazs ice cream.

The company also enjoyed a net sales increase of 12 percent in Asia and Latin America.

However, General Mills' convenience stores and foodservice units fell by 10 percent.