General Mills, Inc. (NYSE:GIS) saw its shares gain ground soon after Wednesday’s open, on the release of second-quarter results.
The Minneapolis-based cereal giant reported early Wednesday that net sales of $4.4 billion were flat to last year; whereas organic net sales¹ increased 1%.
Operating profit of $811 million increased 48%, where constant-currency adjusted operating profit increased 7%.
Net earnings attributable to General Mills totaled $581 million, up 69 percent from a year ago, primarily reflecting higher operating profit and lower net interest expense, partially offset by higher tax expense.
Diluted earnings per share (EPS) totaled $0.95, up 67% from the prior year; adjusted diluted EPS of $0.95 increased 11% in constant currency.
Said CEO Jeff Harmening, "I’m encouraged by our second-quarter performance, including the broad-based improvement in our organic sales trends and positive results on the bottom line.
"We will build on our topline momentum in the second half, fueled by increased investment in our brands.
General Mills reaffirmed its full-year fiscal 2020 targets for sales, profit, and EPS, and raised its target for free cash flow conversion.
Organic net sales are expected to increase 1% to 2%. The combination of currency translation, the impact of divestitures executed in fiscal 2019, and contributions from the 53rd week in fiscal 2020 are expected to increase reported net sales by approximately one percentage point.
General Mills is pursuing its Consumer First strategy, emphasizing strong innovation, accelerating growth on its four differential growth platforms including Häagen-Dazs ice cream, snack bars, Old El Paso Mexican food, and its portfolio of natural and organic food brands.
Shares picked up 92 cents, or 1.8%, to $53.09
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