Shares of General Mills, (GIS) - Get General Mills, Inc. (GIS) Report maker of Cheerios cereal and Betty Crocker cake mix, rose on Wednesday after the company revised its fiscal year 2022 outlook and said it expects organic net sales and adjusted earnings to be at the higher end of its prior estimates.
Shares of the Minneapolis company at last check rose 3.6% to $58.82.
General Mills updated its financial outlook for the year after two months of raising prices across nearly all its grocery categories around the world.
General Mills had earlier said cost inflation and the balance between at-home and away-from-home food demand are the keys to its next fiscal year.
General Mills said adjusted earnings per share are expected to be "toward the higher end of the prior ranges of" down 2% to 4% and flat to down 2%.
"Organic net sales are now expected to be toward the higher end of the prior range of" down 1% to 3%, the company said.
The manufacturing giant said the rise in organic net sales reflects "stronger-than-expected sales performance in the first quarter."
General Mills will report fiscal first-quarter earnings on Sept. 22.
The foods giant attributed the stronger adjusted-earnings estimate to its recent pet-treats acquisition. General Mills completed the acquisition of Tyson Foods’ (TSN) - Get Tyson Foods, Inc. Class A Report pet-treats portfolio on July 6.
It expects to complete the divestiture of its European Yoplait operations by the end of calendar 2021.
At the end of June, General Mills posted stronger-than-expected adjusted fiscal-fourth-quarter earnings but had cited uncertainty about the fiscal 2022 outlook.