The Minneapolis-based company, whose products include Nature Valley granola bars and Haagen Dazs ice cream, generated net sales of $4 billion in the three months ended Aug. 25, down 2.2% from the corresponding quarter of the prior year. This was below the consensus estimate of analysts polled by Capital IQ for $4.08 billion.
Organic net sales were down 1%, which the company said reflected lower organic volume, partially offset by positive organic net price realization and mix across all operating segments.
By segment, North America retail sales were 0.5% lower at $2.38 billion while sales in Europe and Australia were down 9.3% at $454.1 million. Sales from convenience stores and food services were worth $445 million, 3.9% lower than a year earlier.
Sales from the company's pet segment and the combined Asia and Latin America segment were worth $367.8 million and $359.5 million, respectively, up 7.1% and down 9.9%.
Adjusted diluted earnings per share came in at $0.79, up from $0.71 in the corresponding quarter of the prior year and comfortably ahead of analysts' estimates for $0.77. The company said that this increase was driven primarily by higher adjusted operating profit, lower net interest expense, a lower adjusted effective tax rate, and higher non-service benefit plan income. It said that these factors were partially offset by higher average diluted shares outstanding.
For the full year, the company said that the combination of currency translation, the impact of divestitures executed in fiscal 2019 and contributions from the 53rd week in fiscal 2020 are now expected to increase reported net sales by approximately 1 percentage point.
Constant-currency adjusted diluted earnings per share are expected to increase 3% to 5% from the base of $3.22 earned in fiscal 2019.
Price: $54.78, Change: $-0.24, Percent Change: -0.45%
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