Skip to main content

Green Giant sale, poor US performance hit General Mills' pocket

  • Author:
  • Updated:

Lower sales in the U.S. and the sale of Green Giant saw General Mills fall short of profit expectations in its 2nd Quarter results.

The Golden Valley-based company announced a 2 percent adjusted rise in net earnings to $530 million – 82 cents a share – for the quarter, but stock analysts had been expecting profits amounting to 83 cents a share, according to the Star Tribune.

Overall sales declined 2 percent over a year ago to $4.42 billion, which according to the Wall Street Journal was 4 percent below Wall Street projections, and much of the blame for the fall was placed at the feet of the company's U.S. division.

The company said sales of its snacks and baking products – which includes brands Betty Crocker, Pillsbury, Bugles, Nature Valley and Chex – declined by 1 percent, while all its other product categories (cereals, pizzas, etc.) declined "mid single-digits."

Also factored into the domestic figures was the business lost following the sale of its Green Giant and Le Sueur canned vegetable brands for $765 million and the acquisition last year of Annie's Homegrown, which resulted in a 1 percent drop in net sales.

Profits have managed to rise in spite of this thanks to a cost-cutting initiative which will continue into next year, with the company targeting $450 million in savings by 2017 and $500 million by 2018.

Some General Mills products have been performing well also.

The company highlighted Cinnamon Toast Crunch, Lucky Charms, Yoplait Greek yogurt, Nature Valley grain snacks, Progresso Soup, Bugles and Chex Mix as products that made "particularly strong contributions" to sales in its first half.

General Mills has been re-aligning its business strategy in the past year, with the sale of Green Giant and acquisition of Annie's part of that as it moves towards more fresh and organic products in response to changing consumer tastes.

Next Up


Fatal crash under investigation on Hwy 62 in Mendota Heights

The Minnesota State Patrol is investigating the crash near Dodd Road.

Pixabay bike wheel

Driver strikes 5 bicyclists near Mapleton

The Sheriff's Office has indicated that those injured were children.

Screen Shot 2020-04-30 at 3.13.52 PM

The former Bachelor Farmer space is sold in Minneapolis

A new restaurant is expected to open next year.

flooding on Interstate 90

Supercharged atmosphere causing more mega-rain events

There could be a mega-rain event Saturday-Sunday in Minnesota, Wisconsin and/or Iowa.


Massive Burnsville landfill expansion nears final approvals

The City of Burnsville and the Minnesota Pollution Control Agency are accepting public feedback on the proposal.

Screen Shot 2022-08-05 at 2.35.39 PM

Kyle Rittenhouse attorney to defend accused Apple River killer Nicolae Miu

The attorney who helped Kyle Rittenhouse be acquitted of all charges is defending the alleged Apple River mass stabber.

Screen Shot 2022-08-05 at 7.55.41 AM

Minneapolis police trying to ID pair in connection to fatal shooting

Police say the two people pictured are connected to the fatal shooting of Ivan Redday last month.


17-year-old girl killed in southern Minnesota crash

The crash happened early Thursday morning near Lake Crystal.

Tim Gannon

Ex-Brooklyn Center police chief sues city over resignation

Tim Gannon alleges he was forced to resign following the fatal shooting of Daunte Wright.

boat, boating, lake

Men injured after boat crash sends propeller spinning onto craft

The motor reportedly flew out of the water and severely injured two men on the boat.


Officials investigating possible spill near Enbridge pipeline in Wisconsin

It comes as another water spill is being reported at Enbridge's Line 3 pipeline in Minnesota.