General Mills Earnings Beat Forecasts as Price Increases Support Margins and Outlook

One of the most popular food processing public company, General Mills (GIS ), just released its quarterly and semiannually financial results, upon which its stock rose moderately, by 0.94% at the time of writing, in today’s, September 20, premarket trading after expectations were in line with its Q1 earnings report.

GIS’s revenue increased 4% YoY to $4.9 billion, on the back of favorable net price realization and mix partially offset by lower per-unit volumes in the quarter. Organic sales also increased 4%, driven by positive organic net price realization and mix. The International division posted the largest increase in organic sales (+9% YoY) even though total sales volume fell 2% in the quarter, primarily affected by declines in the North American Retail (-5%), Pet (-5%) and International (-5%) segments, while the North American Foodservice business posted a 7% decline recorded in in volume.

However, the company said adjusted earnings for the reporting period ending in August, the group's fiscal Q1, slipped 1.8% from last year to $1.09 per share, narrowly topping Street forecasts of $1.08 per share.