General Mills exceeded Wall Street estimates in the first quarter of the fiscal year.
The US multinational reported revenues of £3.42 billion and 78 pence EPS.
General Mills’ board of directors declared 51 cents per share of the quarterly dividend.
General Mills Inc. (NYSE: GIS) on Wednesday released its first quarter financial results, which were stronger than analysts had expected. General Mills also increased its dividend on Wednesday, reflecting the company’s aggressive quarterly performance. The company said it is committed to reducing greenhouse gas (GHG) emissions by at least 30% by 2030.
General Mills opened more than 1% on Wednesday, but gave up most of its intraday profit when the market opened. With a price of 45.79 pounds per share, the stock market has so far gained just over 10% in 2020. At the end of March, the company’s shares had fallen to £37.09 per share due to COVID-19 interruptions. Are you interested in investing in the stock market online? Here is a simple guide to help you get started.
General Mills’ Q1 earnings report compared to analysts’ estimates
According to FactSet, experts had predicted that the company would generate revenues of £3.31 billion in the first quarter. Their estimate for earnings per share was capped at 68.26 pence. In its report on Wednesday, General Mills exceeded both estimates with higher revenues of £3.42 billion and adjusted earnings per share of 78 pence in the first quarter.
At £501.26 million, the US multinational said its net profit was higher than £408.44 million in the same quarter last year. In North America, General Mills added, retail, petcare and global segments sales were positive, offset by a decline in retail and foodservice sales due to the COVID 19 crisis, which prevented people from eating out.
The Minneapolis-based company’s board of directors declared 51 cents as a share of the quarterly dividend on Wednesday, an increase of 4% over the same quarter last year. General Mills admitted that the market was unsettled by the coronavirus pandemic as it refrained from issuing its guidance for fiscal 2021.
CEO Jeff Harmening’s comments on Wednesday
However, CEO Jeff Harmening said on Wednesday
“I am more confident than ever that General Mills is ready to emerge stronger from the pandemic and capable of delivering consistent, profitable growth and superior returns to our shareholders.
In the previous quarter (Q4), General Mills reported annualized sales growth of 21%, according to the report released in the first week of July.
At the time of writing this report, General Mills is estimated to be worth £27.94 billion and has a P/E ratio of 16.39.