Shares in General Mills Inc.(NYSE:GIS) were higher in pre-market trading after reporting a strong set of results in the second quarter to November 26 and providing an upbeat assessment of its future prospects.
The consumer foods firm said in a statement that net sales increased 2% to $4.2bn while organic net sales increased 1%. First-half operating cash flow increased 45% to US$1.6bn while free cash flow increased 72% to US$1.3bn.
The company revised up its fiscal 2018 full-year organic net sales outlook based on better-than-expected year-to-date results.
"Organic net sales are now expected to range between flat and down 1 percent, compared to the previous range of a decline of 1 to 2 percent," the company said.
Operating profit declined 5% while total segment operating profit was down 8% tin constant currency. Diluted earnings per share (EPS) declined 8% to US$0.74; adjusted diluted EPS totalled US$0.82, down 5% in constant currency.
READ: General Mills shares set to fall after worse-than-expected first quarter
"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."
Harmening added that:, "Our profit was down in the first half, but I'm confident we will deliver profit growth in the second half. With two quarters behind us and good visibility to the impact of our strong second-half plans, we're raising our 2018 organic sales guidance and maintaining our outlook for profit and EPS. I'm encouraged by the step that fiscal 2018 represents in our effort to return our business to consistent top- and bottom-line growth for the long term."
In pre-market deals, General Mills shares were up US$0.77 at US$58.40, a rise of 1.34%.