General Mills beats quarterly estimates, shares spark

20th Mar 2024 11:28

(Sharecast News) - US food giant General Mills reported better-than-expected quarterly numbers on Wednesday, boosted by higher prices and market share gains.

The maker of Cheerios, Lucky Charms, Betty Crocker and Haagen-Dazs, among others, said third-quarter net sales eased 1% to $5.1bn, after lower pound volume was offset by favourable net price realisation and mix.

Analysts has been expecting a fall of around 3.1%.

Operating profits rose 25% to $911m, while adjusted diluted earnings per share rose 22% to $1.17. Wall Street had pencilled in EPS closer to $1.05.

The company also reaffirmed its annual sales and profits targets.

Chief executive Jeff Harmening said: "General Mills' strategic focus on brand building, innovation and in-store execution contributed to improved volume and market share trends.

"We continue to navigate today's evolving operating environment while generating industry-leading levels of cost savings. And we remain committed to investing further in our brands and capabilities to drive profitable growth over the long term."

As at noon GMT, General Mills had put on 3% in pre-market trading.

General Mills sells its breakfast cereals through a joint venture with Switzerland's Nestle, Cereal Partners Worldwide.