Food maker General Mills Inc (NYSE:GIS) has reported its seventh straight quarterly sales decline, hurt by weak demand for its yogurt and baking products, as the company discounted less in a competitive pricing environment in the US.
The maker of Cheerios breakfast cereal said its net sales fell by 5.2% to US$3.79bn in the third quarter to February 26, falling short of analysts' average estimate of US$3.82bn.
General Mills saw its net income fall to US$357.8mln, or 61 cents per share in the quarter, down from US$361.7ln, or 59 cents per share a year earlier.
Excluding one-time items, however, the company earned 72 US cents per share, beating the average analyst expectation of 71 US cents.
The company said it has been spending less on products such as Pillsbury refrigerated dough by reducing promotions, and has invested more in profitable businesses such as Cheerios cereal.
In early New York trading, shares in the Minneapolis-based group were down 0.6% at US$59.90.