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General Mills (NYSE:GIS) gained after the food company boosted its organic sales guidance for the full year following solid FQ3 results.
Organic sales increased 4% during the quarter, reflecting seven points of positive organic net price realization and mix, partially offset by a headwind from lower organic pound volume of four points.
Operating profit was down 1%, driven primarily by lower gross profit dollars and less favorable investment activity, partially offset by a gain on divestitures. The operating profit margin of 18.0% was lower than last year’s 18.3% mark.
CEO Jeff Hammering noted demand for GIS’ brands remains robust and the company has the resources to overcome disruptions throughout the supply chain.
“We expect to drive strong growth in the fourth quarter, fueled by accelerating net price realization. With confidence in our plans and positive momentum on our business, we’re raising our guidance for fiscal 2022.”
General Mills (GIS) expects organic sales to increase approximately 5% vs. a prior expectation of 4% to 5%.
Shares of General Mills (GIS) rose 2.11% in premarket trading to $64.00 vs. the 52-week trading range of $56.67 to $69.95.