General Mills has reported that third quarter profit fell 33 percent, citing soaring product costs and marketing expenses, partly offset by the stronger dollar.
By Ellie Duncan
Net income was down to $288.9 million, or 85 cents a share, from $430.1 million, or $1.23 a share in the equivalent period the prior year.
Demand for the company’s Big G cereals and Totino’s pizzas increased as consumer eat at home.
Sales in the quarter ended February 22, rose 3.9 percent to $3.54 billion. General Mills said that foreign currency translation reduced sales gains by three percentage points.
Despite the profit decline, General Mills raised its full year estimate of profit to $3.87 to $3.89 a share, from a previous projection of $3.83 to $3.87.
The company added that it expects fourth quarter product cost inflation to be “well below” the estimated full year inflation rate of nine percent.