General Mills Reports Another Sales Gain, But Growth Slows
September 23 2020 - 7:48AM
Dow Jones News
By Micah Maidenberg
General Mills Inc. reported stronger sales for its latest
quarter, but growth was a bit slower than in the spring when
consumers first locked down as officials tried to halt the spread
of the new coronavirus.
General Mills reported a profit of $638.9 million, or $1.03 a
share, for its fiscal first quarter that ended Aug. 30, up from
$520.6 million, or 85 cents a share, the year earlier.
Adjusted earnings of $1 a share were ahead of the 87 cents a
share that analysts polled by FactSet predicted for that
metric.
The maker of cereals like Cheerios, Nature Valley granola bars,
Bisquick mixes and other food items on Wednesday said it generated
$4.36 billion in sales for the latest period, up from $4 billion
the year earlier and beating expectations from analysts.
On a comparable basis, sales were up 10%, a gain the company
said reflected in part elevated demand from consumers to prepare
food at home as well as higher prices.
For its previous quarter, which ended May 31, comparable sales
rose 16%.
In its business selling items to retailers in the U.S. and
Canada, the Minneapolis-based company said it saw stronger demand
for refrigerated baked goods, dessert mixes and soup, as well as
gains in the U.S. for its cereals and yogurt products.
The packaged-food industry has caught a tailwind for much of
this year because the pandemic reshuffled how consumers approached
food. Families have been preparing more food to eat at home amid
closures and, later, capacity limitations on restaurant dining
rooms.
More recently, however, consumers who tapped enhanced
unemployment benefits from the federal government have pulled back
on spending at grocery stores after that benefit expired in
July.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
September 23, 2020 07:33 ET (11:33 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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