General Mills (GIS)

U.S. Retail Results

Net sales for General Mills’ domestic retail operations grew 3 percent in the second quarter to $2.34 billion, reflecting 2 percent unit volume growth and net price realization. Operating profits totaled $545 million, down 4 percent from prior-year profits that were up 5 percent from 2004 levels.

        The Meals division made the strongest dollar contribution to net sales growth, with a 9 percent increase driven by Progresso soup and Helper dinner mixes. Yoplait net sales grew 16 percent, reflecting continued strong performance from core product lines and new Chocolate Whips! yogurt. Snacks net sales grew 8 percent, led by Nature Valley granola bars and Chex Mix. Baking Products net sales rose 3 percent in the second quarter, reflecting price realization and favorable mix, including strong performance from new Warm Delights single-serve microwaveable desserts. Big G

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cereal net sales were 2 percent below prior-year results. Pillsbury USA net sales declined 4 percent for the quarter, with lower results from refrigerated cookies and Totino’s. Total consumer purchases of the company’s products grew in the quarter, as composite sales for major product lines were up 4 percent.

        Through the first six months of 2006, General Mills U.S. Retail net sales were up 2 percent to $4.14 billion and operating profits were up 3 percent to $951 million.