General Mills Inc. (NYSE: GIS)reported its second quarter financial results for fiscal year 2018 and beat analysts’ revenue estimates. Shares opened 1.2 percent higher before falling on Wednesday morning.
For the second quarter, General Mills reported net sales of $4.2 billion, increasing 2 percent year over year, and beating analysts’ estimates by $110 million. The company reported an EPS of $0.74, falling 8 percent year over year.
North American retail only saw 1 percent increase in sales, while Europe and Australia showed a 7 percent increase. Stronger than expected sales were primarily driven due to its Cheerio cereal brand product, along with Lärabar and Nature Valley bars.
“I’m pleased with the breadth of the topline improvement we delivered this quarter across our geographies, product platforms, and channels,” said General Mills Chief Executive Officer Jeff Harmening.
“We’re executing better, with stronger innovation, more effective brand building, and better merchandising leading to market share gains in the majority of our key global platforms. I’m also pleased that we delivered topline growth in absolute terms.” added Harmening.
For the full fiscal year, General Mills estimates sales growth to between flat and down 1 percent, better than its previous outlook of a 1 to 2 percent decline.