General Mills (NYSE: GIS) enjoyed modest gains on Wednesday’s markets as investors took in cheery new numbers from the cereal maker’s second quarter, which ended in late November.
The company, based in Minneapolis, said its net sales increased 2% to $4.2 billion; organic net sales increased 1%. Operating profit declined 5%, total segment operating profit being down 8% in constant currency.
Net earnings attributable to General Mills totaled $430 million, down 11% from a year ago.
Diluted EPS of $0.74 declined 8%, with lower net earnings offset by 3% fewer average diluted shares outstanding.
GIS also reported diluted earnings per share (EPS) declined 8% to $0.74; adjusted diluted EPS totaled $0.82, down 5% in constant currency
CEO Jeff Harmening beamed, "I'm pleased with the breadth of the topline improvement we delivered this quarter across our geographies, product platforms, and channels.
"We're executing better, with stronger innovation, more effective brand building, and better merchandising leading to market share gains in the majority of our key global platforms. I'm also pleased that we delivered topline growth in absolute terms."
General Mills also reported Cash provided by operating activities totaled $1.57 billion through six months of fiscal 2018, up 45% from the prior year due to further improvements in accounts payable as well as changes in trade and incentive accruals. Capital investments through the first six months totaled $260 million.
Dividends paid year-to-date totaled $565 million. During the first six months of 2018, General Mills repurchased 10.9 million shares of common stock for a total of $600 million.
GIS stock rose $1.03, or 1.8%, to $58.66.
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