General Mills has seen a 4% increase in sales to £4.3 billion as it reports “strong top and bottom-line growth”.
The Häagen-Dazs owner has as a result raised its full-year outlook for organic net sales growth from 6 to 7%, to between 8% and 9% in 2023.
However in the second quarter, the manufacturers international net sales were down 27% to £556 million, driven by factors including lower pound volume, as well as the impact of yogurt and dough divestitures and an ice cream recall.
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The segment’s operating profit also saw a drop to £14.9 million from £48.8 milion last year driven by higher output costs and lower volume.
Despite this, General Mills chairman and chief executive officer, Jeff Harmening said: “We continued to execute well and delivered strong top and bottom-line growth in the second quarter.”
In looking to 2023, General Mills said it expects the largest factors impacting its performace to be the economic health of consumers, the inflationary cost environment and disruptions to the supply chain.
Harmerning added: “Amid ongoing volatility in the operating environment, we remain focused on driving our Accelerate strategy by investing in brand building and innovation, strengthening our capabilities, and continuing to reshape our portfolio.”
“With strong first-half results and positive momentum on our business, we are increasing our full-year outlook for organic net sales, adjusted operating profit, and adjusted diluted EPS growth.”
