Revenue during the quarter dropped 5.23 percent to $3,793.20 million from $4,002.40 million in the previous year period. Gross margin for the quarter expanded 56 basis points over the previous year period to 34.47 percent. Total expenses were 85.70 percent of quarterly revenues, up from 85.35 percent for the same period last year. That has resulted in a contraction of 35 basis points in operating margin to 14.30 percent.

Operating income for the quarter was $542.50 million, compared with $586.30 million in the previous year period.

However, the adjusted operating income for the quarter stood at $639.80 million compared to $636.40 million in the prior year period. At the same time, adjusted operating margin improved 97 basis points in the quarter to 16.87 percent from 15.90 percent in the last year period.

"Our third-quarter results finished in line with our expectations and keep us on track to deliver the guidance we updated last month," said General Mills chairman and chief executive officer Ken Powell. "Our net sales declined due primarily to gaps in pricing and promotional activity in key U.S. businesses. Our cost savings efforts helped us expand our adjusted operating profit margin and drive growth in adjusted diluted EPS. Looking ahead, we are highly focused on improving our topline performance while continuing to expand our margins. We've added support in the fourth quarter to strengthen key business lines, and we’re pursuing global growth priorities that will further improve our sales trends beyond fiscal 2017."

The company has spent $424 million cash to meet investing activities during the nine month period as against cash inflow of $335.10 million in the last year period It has incurred net capital expenditure of $474 million on net basis during the nine month period, up 0.19 percent or $0.90 million from year ago period.

The company has spent $982.80 million cash to carry out financing activities during the nine month period as against cash outgo of $1,720.50 million in the last year period.

Cash and cash equivalents stood at $899.10 million as on Feb. 26, 2017, up 14.87 percent or $116.40 million from $782.70 million on Feb. 28, 2016.

Debt moves up
General Mills has witnessed an increase in total debt over the last one year. It stood at $9,723.10 million as on Feb. 26, 2017, up 10.89 percent or $954.90 million from $8,768.20 million on Feb. 28, 2016. Total debt was 44.87 percent of total assets as on Feb. 26, 2017, compared with 40.53 percent on Feb. 28, 2016. Debt to equity ratio was at 2.21 as on Feb. 26, 2017, up from 1.67 as on Feb. 28, 2016. Interest coverage ratio deteriorated to 7.10 for the quarter from 7.59 for the same period last year.