By Paulo Trevisani
General Mills Inc. said on Wednesday that it expects exchange rates to help increase net sales in fiscal 2022, after increasing revenue in the first quarter.
The Minneapolis-based consumer food supplier announced a year-over-year increase in net sales of 4% to $ 4.5 billion in the quarter ended Aug. 29, including one percentage point due to a favorable exchange rate.
General Mills said fiscal first quarter net sales of its Europe and Australia segment increased 5% from a year ago to $ 518 million “due to favorable exchange rates.”
He also reported an 8% increase in net sales for the Asia and Latin America segment, to $ 413 million, “due to favorable net price realization and a mix and exchange rate, partially offset by lower volumes ”.
“For fiscal 2022, we currently expect that foreign exchange rates (based on a combination of forward and forecast rates and hedge positions) and acquisitions and divestitures will increase net sales” by approximately two percentage points, the company said. He also expects currency exchange rates to have “a negligible impact on adjusted operating income and adjusted diluted EPS growth.”
According to Dow Jones Market Data, in the three months to August 29, the US dollar strengthened 5.9% against the Aussie and 3.4% against the euro, while the WSJ Dollar Index has gained 2.5% during the period.
Write to Paulo Trevisani at [email protected]