Sales were up but earnings down for the most recent quarter at General Mills – a situation that management attributes to not being able to raise prices fast enough.
Net sales for the second fiscal quarter, ending Nov. 28, reached $5.02 billion, a 6.5% increase over the same quarter last year. Net earnings, however, dropped 13%, to $597 million.
“The current operating environment is as dynamic and challenging as I’ve seen in my 27-plus years in the industry,” CEO Jeff Harmening said during an earnings call. “At-home food demand remained elevated, input cost inflation is at a 10-year high, and labor shortages and other issues are causing disruptions across our supply chain, from our suppliers to manufacturing to distribution.”
General Mills has been raising prices for its products, both directly and through such means as package downsizing. Company executives said they expect to increase prices further in 2022, in the range of 7% to 8%.
