General Mills (GIS)

International Net Sales Percentage Change by Geographic Region

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For the third quarter of fiscal 2008, net sales in Europe grew 17.3 percent reflecting strong performance from Green Giant, Betty Crocker and Nature Valley, especially in the United Kingdom. Net sales in Canada increased 13.3 percent primarily due to favorable foreign exchange. In the Asia/Pacific region, net sales grew 30.0 percent led by strong growth for Häagen-Dazs and Wanchai Ferry products in China. Latin America and South Africa net sales increased 27.0 percent reflecting pricing actions taken in key countries. The loss of our La Salteña pasta manufacturing plant in Argentina to fire in the third quarter of fiscal 2008 did not have a significant effect on net sales or operating profit.

Operating profits for the third quarter of fiscal 2008 improved 23.7 percent to $52.2 million from $42.2 million in the same period a year ago, with foreign currency exchange contributing 8.5 points of that growth. The growth was also driven by a $5.8 million increase from higher volumes resulting from increases in consumer marketing spending. Net price realization offset supply chain and administrative cost increases.

Operating profits for the nine-month period ended February 24, 2008, improved 29.7 percent to $207.5 million from $160.0 million in the same period a year ago, with foreign currency exchange contributing 8.4 points of that growth. The growth was also driven by a $33.7 million increase from higher volumes resulting from increases in consumer marketing spending. Net price realization offset supply chain and administrative cost increases.

Bakeries and Foodservice Segment Results

Net sales for our Bakeries and Foodservice segment increased 12.8 percent to $492.0 million in the third quarter of fiscal 2008. The increase in net sales was driven by a 12.8 point benefit from price increases taken to counter rising input costs and changes in product mix. Volume was flat including the effects of the frozen pie line divested in fiscal 2007.

Net sales for our Bakeries and Foodservice segment increased 6.5 percent to $1,449.6 million in the nine-month period ended February 24, 2008. The increase in net sales was driven mainly by 8.5 points of benefit from net price realization and product mix. This was partially offset by a 2.0 point decline in volume, mainly in the distributors and restaurants customer channel, and included the effects of frozen pie and par-baked bread product lines divested in fiscal 2007.

International Net Sales Percentage Change by Geographic Region

For the second quarter of fiscal 2008, net sales in Europe grew 19.9 percent reflecting strong performance from Old El Paso and Nature Valley across the region, and especially in the United Kingdom. Net sales in Canada increased 15.5 percent, led by Nature Valley grain snacks, ready-to-eat cereals, and Old El Paso products. In the Asia/Pacific region, net sales grew by 24.4 percent led by strong growth for Häagen-Dazs in China and new Wanchai Ferry products. Latin America and South Africa net sales increased 42.6 percent led by market share gains and pricing actions taken in key countries.

Operating profits for the second quarter of fiscal 2008 improved 36.2 percent to $84.3 million from $61.9 million in the same period a year ago, with foreign currency exchange contributing 24.6 points of that growth. The growth was also driven by a $13.6 million increase from higher volumes resulting from increases in consumer marketing spending. Net price realization offset supply chain and administrative cost increases.

Operating profits for the six-month period ended November 25, 2007 improved 31.8 percent to $155.3 million from $117.8 million in the same period a year ago, with foreign currency exchange contributing 20.3 points of that growth. The growth was also driven by a $28.0 million increase from higher volumes resulting from increases in consumer marketing spending. Net price realization offset supply chain and administrative cost increases.

Bakeries and Foodservice Segment Results

Net sales for our Bakeries and Foodservice segment increased 7.6 percent to $516.7 million in the second quarter of fiscal 2008. The increase in net sales was driven by an 8.6 point benefit from price increases taken to counter rising input costs, and changes in product mix. This was offset somewhat by a 1.0 point decline in volume, mainly in the distributors and restaurants customer channel, and included the effects of frozen pie and par-baked bread product lines divested in fiscal 2007.

Net sales for our Bakeries and Foodservice segment increased 3.5 percent to $957.6 million in the six-month period ended November 25, 2007. The increase in net sales was driven mainly by 6.4 points of benefit from net price realization and product mix. This was partially offset by a 2.9 point decline in volume, mainly in the distributors and restaurants customer channel, and included the effects of frozen pie and par-baked bread product lines divested in fiscal 2007.

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International Net Sales Percentage Change by Geographic Region

Net sales in Europe grew 16.7 percent reflecting continued strong performance from Old El Paso and Nature Valley across the region, and especially in the United Kingdom. Net sales in Canada increased 10.7 percent, led by Nature Valley grain snacks, Old El Paso products, Pillsbury pizza snacks and cereals. In the Asia/Pacific region, net sales grew by 17.4 percent led by strong growth for Häagen-Dazs in China. Latin America and South Africa net sales increased 42.4 percent led by market share gains and pricing actions taken in key countries.

Operating profits for the first quarter of fiscal 2008, improved 27.0 percent to $71.0 million from $55.9 million in the same period a year ago, with foreign currency exchange contributing 8.3 points of that growth. The growth was also driven by a $14.4 million increase from higher volumes resulting from increases in consumer marketing spending. Net price realization offset supply chain and administrative cost increases.

Bakeries and Foodservice Segment Results

Net sales for our Bakeries and Foodservice segment declined 0.9 percent to $440.9 million in the first quarter of fiscal 2008. The decrease in net sales was driven mainly by a 4.9 point decline in volume, mainly in the distributors and restaurants customer segment, and included the effects of divested frozen pie and par-baked bread product lines. The volume impact on net sales was largely offset by 4.0 points of benefit from price and product mix.