General Mills reports lackluster North America retail sales for second quarter
Sales were up but profit down in General Mills mixed bag of quarterly results posted Wednesday.
The Golden Valley-based food maker saw its second-quarter profit fall more than 20 percent from a year ago to $343 million. For the period ended Nov. 25, General Mills is reporting $4.4 billion in revenue, up five percent from last year but slightly lower than analysts expected. Still, the maker of Cheerios, Nature Valley and Old El Paso beat Wall Street expectations by reporting earnings per share of 85 cents, which sent its stock up 2 percent in pre-market trading.
The company continues to struggle in its North America retail segment, which accounts for more than 60 percent of the companys income. Its U.S. and Canada sales were down three percent for the quarter.
General Mills expensive Blue Buffalo Pet Products acquisition catapulted the packaged-food giant into the pet retail segment earlier this year, an integration analysts are watching closely.
Were taking actions to strengthen our second-half topline trends in North America Retail, led by U.S. cereal and snacks, said Jeff Harmening, chief executive of General Mills, in the earnings release, Well fuel additional Blue growth in the second half by doubling distribution in the food, drug, and mass channels.
General Mills, now at the halfway point of its fiscal year that starts and ends in late May, reaffirmed its full-year guidance.
Im pleased that our results through six months keep us on track to deliver our full-year targets, Harmening said.
Kristen Leigh Painter 612-673-4767