General Mills sales soar amid COVID-19 crisis, expects to exceed expectations

General Mills announced that it expects to exceed its previously provided full-year sales growth expectations. Yahoo Finance’s Heidi Chung breaks down the details.

Video Transcript

- One company we're taking a look at this morning, General Mills. Let's get right back to our very own Heidi Chung who has the latest. Heidi, not a bad press release or pre-announcement from General Mills.

HEIDI CHUNG: Yeah, Brian, and we're seeing General Mills shares up more than 1%, and that's even as the broader market here is lower today. And that's because food giant General Mills boosted its 2020 organic sales guidance this morning, after seeing a stronger than expected at-home food demand in March and April as a result of the COVID19 pandemic.

Now, it's important to note that General Mills reported its fiscal third quarter results on March 18 for the quarter ending February 23rd. So this is the first update that the company has given in regards to sales boost involving COVID19. According to [INAUDIBLE] data, General Mills US retail sales increased by 45% in March and 32% in April, and that is compared to the same period last year.

For some context there globally, at-home food represents approximately 85% of total sales for the company. Now, the company's strong supply chain execution and its trusted leading brands have contributed to the recent market share gains at its at-home food business. And that is according to that release that you mentioned earlier.

The company [INAUDIBLE] trends though, to moderate somewhat in May, but still exceed those pre-COVID levels that they have seen. And General Mills anticipates also that fourth quarter organic net sales [INAUDIBLE] increase about double digits versus the prior year, led by, again, strong growth in North America retail and pets. And that pet category includes General Mills Blue Buffalo brand. Brian.

- All right, Heidi Chung. Thanks so much.