While the company was able to revive its volumes by lowering prices across its products, from snacks to pet food, it said higher targeted promotional investment has weighed on its annual profit forecast. General Mills now expects annual adjusted profit to fall in the range of 1% to 3%, compared with the prior range of down 1% to up 1%.
With more consumers opting to eat at home, the demand for pantry staples and groceries has boosted demand, aiding sales at companies such as General Mills and WK Kellogg (KLG.N).
The Bugles corn chip snacks maker beat second-quarter results as price investments propped up demand.
It posted sales of $5.24 billion for the quarter ended Nov. 24, surpassing analysts' estimates of $5.14 billion, according to data compiled by LSEG.
Adjusted profit came in at $1.40 per share, above estimates of $1.22 per share.
The Minnesota-based company's quarterly volumes rose 3 percentage points, reversing a 4 percentage point decline from the previous year.
Prices decreased by 1 percentage point in the quarter, compared with a 3 percentage point rise a year earlier.
