DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
A-Brands

Baking, Cereal Demand Boosts General Mills' Sales

By Dayeeta Das
Share this article
Baking, Cereal Demand Boosts General Mills' Sales

General Mills Inc beat sales and profit estimates for the first quarter, as people stuck at home due to the COVID-19 pandemic stocked up on its baking products and cereals.

Shares of the Yoplait yoghurt maker climbed 3.5% in premarket trading, as the company also raised its quarterly dividend by 4%.

With people working from home and students taking online classes, there has been a surge in demand for breakfast cereals and yogurt in kitchens across North America.

A wave of new amateur bakers has also boosted sales of the company's Pillsbury and Betty Crocker lines of dough, and cake and brownie mixes. This pushed the company's sales in North America up 14%.

Elevated Demand

General Mills said it expects second-quarter at-home demand to remain elevated compared to pre-pandemic levels, with high single-digit retail sales growth estimated in North America.

ADVERTISEMENT

Net sales for the quarter ended 30 August climbed to $4.36 billion from about $4 billion a year earlier, beating analysts' expectation of $4.21 billion, according to IBES data from Refinitiv. US sales of the company's meals and baking products rose 31%.

Net earnings attributable to General Mills jumped nearly 23% to $638.9 million, or $1.03 per share.

Excluding items, the company earned $1 per share, beating analysts' expectations of 87 cents.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.