General Mills Posts Better-Than-Expected Profit on Pandemic

General Mills continues to benefit from the coronavirus pandemic that has left consumers avoiding eating out.
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Food giant General Mills  (GIS) - Get Report posted stronger-than-expected earnings Thursday as it continues to benefit from the coronavirus pandemic that has kept consumers away from restaurants.

But the news didn’t have much impact on the company’s stock. It recently traded at $58.95, up 0.05%, though it has risen 10% year-to-date through Wednesday.

In the fiscal 2021 second quarter ended Nov. 29, General Mills registered profit of $688.4 million, or $1.11 a share, up from $580.8 million, or 95 cents per share, in the year-ago quarter. Adjusted earnings per share hit $1.06, topping the FactSet analyst consensus of 97 cents.

Revenue totaled $4.72 billion, rising 7% from $4.42 billion a year earlier and besting the analyst consensus of $4.65 billion.

“We executed very well again in the second quarter, driving strong performance on the top and bottom lines,” General Mills Chief Executive Jeff Harmening said in a statement.

The company “expects that the Covid-19 pandemic will drive continued elevated consumer demand for food at home, relative to pre-pandemic levels, through the remainder of fiscal 2021,” it said. “Third-quarter demand trends are expected to be generally consistent with recent months, due to ongoing virus concerns in many markets around the world.”

So, “based on that assumption, the company expects to generate continued strong top- and bottom-line growth in the third quarter of fiscal 2021, with organic net sales growth roughly similar to the second quarter’s growth rate and an adjusted operating profit margin in line with the year-ago period,” General Mills said. Organic sales gained 7% in the second quarter.