WASHINGTON (dpa-AFX) - General Mills (GIS) said its profit and earnings growth were ahead of its expectations for the first-quarter. Net sales decreased 2 percent, while organic net sales were down 1 percent, for the quarter. The decline in organic net sales was due to lower organic volume, partially offset by positive organic net price realization and mix across all operating segments. Looking forward, the company reaffirmed its fiscal 2020 outlook. Shares of General Mills were down more than 4 percent in pre-market trade on Wednesday.
'Our first-quarter net sales performance included encouraging improvement in North America Retail and strong growth in Pet. We got off to a slower start in our other segments, and we're taking actions to drive topline improvement for those segments and the company starting in the second quarter,' said General Mills CEO Jeff Harmening.
For the first-quarter, adjusted earnings per share was $0.79, up 13 percent year-on-year in constant currency. On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $0.77, for the quarter. Analysts' estimates typically exclude special items.
Second-quarter net sales decreased 2 percent to $4.0 billion from prior year. Analysts expected revenue of $4.08 billion for the quarter.
For fiscal 2020, General Mills continues to project: constant-currency adjusted earnings per share to increase 3 to 5 percent from the base of $3.22 earned in fiscal 2019; and organic net sales to increase 1 to 2 percent.
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