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General Mills Q1 Profit Tops Estimates, Organic Net Sales Up 10%; Raises Dividend

General Mills (GIS) reported first quarter adjusted earnings per share of $1.00, up 27 percent in constant currency, primarily driven by higher adjusted operating profit and higher after-tax earnings from joint ventures, partially offset by a higher adjusted effective tax rate and higher average shares outstanding. On average, 17 analysts polled by Thomson Reuters expected the company to report profit per share of $0.87, for the quarter. Analysts' estimates typically exclude special items. Operating profit was $854 million, up 29 percent year-on-year. Constant-currency adjusted operating profit increased 22 percent, for the quarter.

First quarter net sales increased 9 percent to $4.4 billion and organic net sales were up 10 percent, reflecting increased pound volume due to elevated at-home food demand resulting from the COVID-19 pandemic, as well as positive net price realization and mix. Analysts expected revenue of $4.21 billion, for the quarter.

"We continued to drive exceptional results this quarter, highlighted by broad-based market share gains amid elevated at-home food demand due to the COVID-19 pandemic," said General Mills CEO Jeff Harmening.

The General Mills board declared a quarterly dividend of $0.51 per share, payable November 2, 2020, to shareholders of record October 9, 2020. This represents a 4 percent increase from the previous quarterly rate of $0.49 per share.

Shares of General Mills were up 2% in pre-market trade on Wednesday.

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