General Mills Inc said on Monday it expects to surpass its own expectations for fiscal 2020 organic sales, as people stock their pantries with breakfast cereals and other long-lasting packaged food amid lockdowns.
The company, which makes everything from Cheerios cereal and Blue Buffalo pet foods, also said it expects fourth-quarter organic net sales to increase by double-digits percentage, powered by strong growth in its North America retail and pet segments in March and April.
General Mills already raised its earnings forecast for the year in March as consumers cooked more meals at home and stocked up on packaged and pet foods.
Expects Trends To Moderate
However, with many states easing restrictions in the United States, General Mills said it expects trends to moderate in May but will still remain ahead of pre-coronavirus levels.
It expects to exceed its previous forecast ranges of 1% to 2% organic net sales growth, 4% to 6% rise in adjusted operating profit, and 6% to 8% growth in adjusted profit for fiscal 2020.
Shares of the company were up about 1% at $60.58 in early trading.