US-based food company General Mills has reported a 35.3% increase in profit to $548.9m for the first quarter (Q1) ended 26 August 2012.

The company attributed the rise in profits to acquisitions and improving market conditions as net sales for the period increased 5% to $4.05bn.

In the US retail segment, sales dropped by 0.7% to $2.49bn, while operating profit declined 1.7% to $575m.

Divisions such as Snacks, Baking Products, Meals and Small Planet Foods posted rise in net sales, while sales for Big G, Frozen Foods and YOPLAIT declined.

International segment net sales increased 26.8% to $1.09bn while operating profit rose 55.9% to $125.8m, fueled by the acquisition of Yoplait International.

In the Bakeries and Foodservice Segment, net sales declined 2% to $471.6m, while operating profit increased 10.3% to $67.7m, due to lower wheat costs and higher earnings from grain merchandising.

General Mills chairman and chief executive officer Ken Powell said that with this start, the company is on track to achieve its 2013 fiscal targets.

"Results for the first quarter were broadly consistent with our plans, and included sequential improvement in our volume and gross margin trends from the fourth quarter of 2012," Powell added.

General Mills operates in more than 100 countries under various brands that include Betty Crocker, Yoplait, Colombo, Totinos, Jeno’s, Pillsbury, Green Giant, Old El Paso, Häagen-Dazs, Cheerios, and Lucky Charms.