Skip to main content
Updated:
Original:

Mixed bag for General Mills as profits drop 16 percent, but US sales rise

Author:

Profits at General Mills have fallen 16 percent in the third-quarter, as the Minneapolis-based firm continues with its transformation that has already led to hundreds of job losses.

On Wednesday, the food giant released its third-quarter results revealing the profits drop, which according to the Wall Street Journal was primarily because of the effect of a strong dollar on its international sales, as well as the ongoing transformation costs.

It reported profits of $343 million, down from $410.6 million, but this was ahead of Wall Street estimates.

It follows a challenging period for firm, which is undergoing a transformation to react to changing consumer tastes that is seeing a shift towards healthier products.

But, there was better news for its domestic sales. The Wall Street Journal notes that U.S. sales rose by 1.3 percent to $2.65 billion in the third quarter, led by the sales of yoghurts and snacks.

The volume of sales was lower, the newspaper noted, but higher prices and growth from its acquisition of organic food company Annie's help offset this.

Over the past 30 months, the firm has already had two rounds of job cuts (under the names of Project Refuel and Project Catalyst), which the Star Tribune reports has seen 1,500 positions eliminated – around half of which were in Minnesota.

The last of the 800 job cuts from Project Catalyst – which included Minnesota workers – have now been completed, the company has said.

In September, the company announced 1,180 job cuts through another transformation initiative, Project Century, which are focused on operations in other states and are in the process of being made.

This includes consolidation and closures to facilities, affecting 100 jobs in Canada, 400 in Indiana, 250 in Massachusetts and 430 in California.

It had also previously announced 240 jobs would be cut in its international division following the combination of its Yoplait and General Mills operations.

The Associated Press reports shares of the Minneapolis company fell 36 cents to $51.69 in Wednesday morning trading. Its shares are up about 2 percent over the past year.

Next Up

Angela Renee Jones, St. Cloud murder suspect

St. Cloud suspect now charged in two local murder cases

Both murders happened within a day of each other in June.

st anthony 3 crop

Twin Cities police ask for help finding missing 16-year-old

Police say all her family and friends have been contacted, and none of them know where she is.

mpd suspect 12.3.21 - 1 - CROP

MPD releases photos of shooting suspect, asks for public's help

The man is wanted in connection with a fatal shooting that happened Wednesday evening.

redmons popcorn colbert 2

Support grows for Redmon's Popcorn after shop's sudden closure

The county also commented on the situation, saying it hopes to help owner Zack Redmon.

prior lake high school

Prior Lake HS investigating another 'racist' video involving student

The principal said the social media video was reported to them this week.

Screen Shot 2021-12-03 at 3.08.27 PM

Walz: Minnesota has secured 1 million rapid, at-home COVID tests for kids

It comes as the delta variant continues to surge in Minnesota, and the omicron variant might follow.

boundary waters

Forest Service limiting permits to BWCAW due to damage, overcrowding

Visitors have been cutting down trees and have been forced to compete for campsites.

police lights

Lockdown update: Armed man threatened to go to Kimball High School

A high school and elementary school near St. Cloud went into lockdown as a precaution.

chaska sewer

People in Chaska are flushing the wrong crap down the toilet

Water and sewer crews in Chaska have had to clean the same pump four times in the past seven days.

Brian O'Neill

Matthew Coller: What if the Vikings didn't have Detroit?

The Lions have been like two freebies on the Vikings' schedule the past three seasons.

water drain

MN will get $116M for water projects as part of infrastructure package

Nationwide, $7.4 billion will be distributed for projects next year.

Related