US: General Mills Tops Estimates With Q1 Growth

General Mills has reported better-than-expected profit growth for its fiscal first quarter, as cost-cutting initiatives helped offset weak sales in its home market.

For the three months to 28 August, net profit was down 4.1% to $409m, but this topped analysts’ estimates.  Sales were down 7% to $3.9bn, the fifth straight quarter they have fallen, but this was in line with expectations.

The group said it was again hurt by weak demand for some brands, such as Progresso and Yoplait, but this was partially offset by a 6% reduction in cost of sales.