General Mills raises forecasts for 2023 again on higher price hikes


MARCH 23 (Reuters) – General Mills (GIS.N) on Wednesday raised its forecast for fiscal 2023 for the fourth time. The quarterly results beat expectations, boosted by higher prices and steady demand for processed foods.

Multinational packaged food companies are raising product prices to protect profit margins from rising costs, and face low resistance as Americans eat out less amid growing fears of a recession.

General Mills organic sales increased 16 percent in the third quarter, driven primarily by higher prices, while volumes were flat.

Shares of Cheerios cereal maker rose about 2% in premarket trading.

General Mills most recently raised its full-year organic sales and earnings guidance in February.

The company said Thursday it expects organic net sales to grow 10% to 11% in fiscal 2023, compared with previous forecasts of growth of around 10%.

Adjusted earnings per share growth in 2023 is expected to range between 8% and 9% on a constant currency basis, compared to a historical range of growth of 7% to 8%.

Refinitiv data showed the company’s net sales rose 13% to about $5.13 billion in the third quarter ended February 26, compared with analysts’ expectations of $4.97 billion. .

Excluding the one-time charge, General Mills’ earnings per share were 97 cents, compared to expectations of 93 cents.

Reported by Grant Vanaik of Bangalore.Editing: Shinjini Ganguly

Our standards: Thomson Reuters Trust Principles.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *