General Mills, Inc. (NYSE:GIS) gained ground on reports of quarterly earnings Wednesday.
Net sales increased 5% to $4.4 billion, and grew 7% in constant currency; organic net sales declined 1%. Operating profit totaled $547 million, down 23% from last year due to higher restructuring, impairment, and other exit costs.
Net earnings attributable to General Mills totaled $343 million, down 20% from a year ago, driven by lower operating profit and higher net interest expense, partially offset by a lower effective tax rate.
Diluted earnings per share (EPS) of $0.57 declined 23%, while adjusted diluted EPS of $0.85 increased 2% in constant currency
According to CEO Jeff Harmening, "I'm pleased that our results through six months keep us on track to deliver our full-year targets.
"Our cost and capital discipline has driven profit growth ahead of our expectations in the first half. Our job to do in the second half is to accelerate our sales growth while maintaining that same discipline. We're taking actions to strengthen our second-half top-line trends in North America Retail, led by U.S. cereal and snacks.
"On Blue Buffalo, we're driving strong in-market results, including year-to-date retail sales up 9%, and we'll fuel additional Blue growth in the second half by doubling distribution in the Food, Drug, and Mass channels.
"With strong first-half profit performance," Harmening concluded, "good cost visibility, and confidence in our second-half growth plans, we are reaffirming our guidance for Blue Buffalo and for General Mills in total."
General Mills shares jumped $2.28, or 6.2%, to $38.98
