General Mills Inc.
GIS 2.82%
boosted its outlook after revenue rose 13% in its latest quarter, as consumers continued to buy the food maker’s products despite higher prices.
The fiscal third-quarter sales gain was primarily from higher prices, which General Mills and other food companies have been pushing through to offset higher costs. The amount of food that the company sold globally was flat, including declines in its North American retail business and in its international market.
For the full year, General Mills now forecasts organic sales, which exclude acquisitions, divestitures and the impact of currency translation, rising between 10% and 11%, slightly higher than the outlook it gave last month. Per-share earnings are expected to rise 8% to 9% on an adjusted basis, also a slight increase.
The Minneapolis-based maker of Cinnamon Toast Crunch cereal and Betty Crocker cake mix posted earnings of $553.1 million, or 92 cents a share, for the quarter ended Feb. 26, down from $660.3 million, or $1.08 a share, in the year-ago period. Adjusted earnings were 97 cents a share, above analysts’ estimates of 92 cents.
Overall revenue came to $5.13 billion compared with $4.54 billion a year earlier, above analysts’ estimates of $4.97 billion. Organic net sales increased 16%, driven by higher prices and positive shifts in the mix of products it sold.
Chief Executive
Jeff Harmening
said the company continued to manage well despite ongoing supply-chain disruptions and volatility in the operating environment.
General Mills and other food makers such as
Kellogg Co.
and
Kraft Heinz Co.
have posted higher sales as they have raised prices to offset rising costs for ingredients, transportation and labor.
The extent to which higher costs can be contained is a central part of the Federal Reserve’s efforts to bring down inflation that remains stubbornly high.
The consumer-price index, a closely watched inflation gauge, rose 6% in February from a year earlier, down from a 6.4% gain the prior month, the Labor Department said. It was the smallest increase since September 2021.
Analysts at UBS on Tuesday noted that packaged-food companies could perform well in a potential recession, as consumers cut down on eating out at restaurants.
Write to Denny Jacob at denny.jacob@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
General Mills Inc.
GIS 2.82%
boosted its outlook after revenue rose 13% in its latest quarter, as consumers continued to buy the food maker’s products despite higher prices.
The fiscal third-quarter sales gain was primarily from higher prices, which General Mills and other food companies have been pushing through to offset higher costs. The amount of food that the company sold globally was flat, including declines in its North American retail business and in its international market.
For the full year, General Mills now forecasts organic sales, which exclude acquisitions, divestitures and the impact of currency translation, rising between 10% and 11%, slightly higher than the outlook it gave last month. Per-share earnings are expected to rise 8% to 9% on an adjusted basis, also a slight increase.
The Minneapolis-based maker of Cinnamon Toast Crunch cereal and Betty Crocker cake mix posted earnings of $553.1 million, or 92 cents a share, for the quarter ended Feb. 26, down from $660.3 million, or $1.08 a share, in the year-ago period. Adjusted earnings were 97 cents a share, above analysts’ estimates of 92 cents.
Overall revenue came to $5.13 billion compared with $4.54 billion a year earlier, above analysts’ estimates of $4.97 billion. Organic net sales increased 16%, driven by higher prices and positive shifts in the mix of products it sold.
Chief Executive
Jeff Harmening
said the company continued to manage well despite ongoing supply-chain disruptions and volatility in the operating environment.
General Mills and other food makers such as
Kellogg Co.
and
Kraft Heinz Co.
have posted higher sales as they have raised prices to offset rising costs for ingredients, transportation and labor.
The extent to which higher costs can be contained is a central part of the Federal Reserve’s efforts to bring down inflation that remains stubbornly high.
The consumer-price index, a closely watched inflation gauge, rose 6% in February from a year earlier, down from a 6.4% gain the prior month, the Labor Department said. It was the smallest increase since September 2021.
Analysts at UBS on Tuesday noted that packaged-food companies could perform well in a potential recession, as consumers cut down on eating out at restaurants.
Write to Denny Jacob at denny.jacob@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8