By Micah Maidenberg

General Mills Inc. continued to benefit during its latest quarter from consumers buying food to eat at home amid the pandemic, but reported some rising costs cut into profit growth.

The maker of Cheerios, Nature Valley granola bars, pet food and other products on Wednesday reported net income attributable to the company of $595.7 million for its fiscal third quarter, up from $454.1 million a year earlier.

Profit rose to 96 cents from 74 cents on a per-share basis. General Mills also reported an adjusted profit of 82 cents a share, 2 cents short of the consensus estimate as compiled by FactSet.

Higher input costs and a rise in expenses for logistics partially weighed on operating earnings and margins, following adjustments, Chief Financial Officer Kofi Bruce said in prepared remarks.

An operating margin of 15.8% was modestly below expectations, he said.

The company said it generated revenue of $4.52 billion, up 8% year over year and ahead of the $4.45 billion that analysts had predicted.

Sales for the company's business selling food to retailers with locations in the U.S. and Canada rose 9% in the latest quarter to $2.73 billion.

That gain was helped along by a 15% increase in comparable net sales for its meals and baking items in the U.S. and a 9% rise in cereal sales in the market.

However, sales for convenience stores and other foodservice outlets declined 10% to $417 million during the quarter, reflecting weaker traffic at those stores, it said.

General Mills' latest quarter ended Feb. 28 and therefore covered parts of a winter surge in new Covid-19 cases in many markets. Like other food manufacturers, the company has seen stronger demand as consumers spend more time at their homes during the pandemic.

"General Mills expects that changes in consumer behaviors driven by the Covid-19 pandemic will result in ongoing elevated consumer demand for food at home, relative to pre-pandemic levels," it said Wednesday.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

03-24-21 0825ET