Global packaged food manufacturers have been raising prices of their products in recent months to insulate their profit margins from spiralling costs of labour, raw materials, supply chain and transportation.
However, they have seen relatively little pushback from inflation-hit consumers, who are otherwise cautious on their spending and are prioritising needs-based consumable goods over discretionary products.
Outlook For Full Year
The Cheerios cereal maker now expects organic net sales to rise 8% to 9% in fiscal 2023, compared with its previous forecast of a 6% to 7% increase.
The company also forecast full-year adjusted profit per share to rise between 4% and 6% on a constant-currency basis, compared with its prior outlook of an increase of 2% to 5%.
Chairman and chief executive officer of General Mills, Jeff Harmening commented, “We continued to execute well and delivered strong top and bottom-line growth in the second quarter. Amid ongoing volatility in the operating environment, we remain focused on driving our Accelerate strategy by investing in brand building and innovation, strengthening our capabilities, and continuing to reshape our portfolio.”
The company's Accelerate strategy aims to drive sustainable, profitable growth and top-tier shareholder returns over the long term.
As part of the plan, General Mills is prioritising its core markets, global platforms, and local brands that have the best prospects for profitable growth and has pledged to reshape its portfolio with strategic acquisitions and divestitures to further enhance its growth profile.