General Mills Sees Quarterly Sales Rise 5%
General Mills, Inc. reported quarterly profit above Wall Street estimates, as the Cheerios cereal-maker managed to eke out higher margins from cost-saving initiatives.
Adjusted gross margin, which came in at 34.5% for the second quarter ended 25 November, beat the average estimate of 33.76%, according to IBES data from Refinitiv.
Excluding items, the company earned 85 cents per share – four cents above the analysts' average estimate.
"Our job to do in the second half is to accelerate our sales growth while maintaining that same [cost and capital] discipline," CEO Jeff Harmening said in a statement on Wednesday.
Net sales rose by 5%, to $4.41 billion (€3.9 billion), helped by its acquisition of pet-product-maker Blue Buffalo, but they were slightly below the average estimate of $4.51 billion.
Net earnings attributable to the company fell to $343.4 million (€300.6 million), or 57 cents per share, from $430.5 million, or 74 cents per share, a year earlier, due to lower operating profit and higher interest expense.