General Mills Inc. on Dec. 18 reaffirmed its guidance for fiscal 2020 after posting second-quarter earnings that exceeded analysts' expectations.
For the three months ended Nov. 24, adjusted EPS rose to 95 cents from 85 cents in the year-ago period, beating the S&P Global Market Intelligence consensus normalized EPS estimate of 88 cents. At constant currency, adjusted EPS increased 11%.
The company reported that adjusted attributable net earnings increased to $580 million from $512.4 million in the second fiscal quarter of 2019.
Net sales were flat year over year at $4.42 billion, while organic sales grew 1%. The increase was driven by General Mills' pet segment, which posted a 16% rise in net sales. Sales were flat in its North America retail arm and in its convenience stores and foodservice unit. Meanwhile, sales in its Europe & Australia segment and its Asia & Latin America segment both decreased by 5%.
Adjusted operating profit rose 7% at constant currency to $813 million and adjusted operating margin was 18.4%.
General Mills reaffirmed its forecast for adjusted diluted EPS growth of 3% to 5% for the full year and organic net sales growth of 1% to 2%. It raised its free cash flow conversion expectations to at least 105% of adjusted post-tax earnings.
Shares of the Minneapolis-based food company were up 1.5% at $52.98 in morning trading in New York.