Plus   Neg

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.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Santa Cruz Bicycles LLC has recalled certain model year 2020 bicycles with aluminum frames citing fall risks, according to the U.S. Consumer Product Safety Commission. The recall involves about 2,900 units of model year 2020 Auminum Santa Cruz and Juliana Bicycles. In addition, about 216 were sold in Canada. AstraZeneca is mulling an additional global trial to confirm the 90% efficacy rate of its Covid-19 vaccine candidate at lower dosage, Bloomberg news quoted Chief Executive Officer Pascal Soriot as saying. In an interview, Soriot noted that instead of adding the trial to an ongoing U.S. process, the company might launch a fresh study to evaluate efficacy of lower dosage of its vaccine that perform U.S. airline Delta Air Lines, Inc. and its Italian codeshare partner Alitalia are planning to launch quarantine-free, COVID-free flights between U.S. and Europe through new testing protocols, starting in December. In a statement, Delta said it has signed deals with airports and governments eliminating quarantine requirements on COVID-tested flights connecting Atlanta and Rome.
Follow RTT