General Mills reaffirms guidance but says supply chain problems will impact the third quarter

General Mills Inc.
GIS,
+0.53%
said early Tuesday that supply chain challenges will impact the third quarter, though the food company reaffirmed its full-year guidance. General Mills expects a 2022 organic net sales increase of 4% to 5%. The FactSet consensus is for $18.827 billion, implying 3.9% growth. “The company added that it expects second-half earnings results to be more heavily weighted to the fourth quarter than previously expected, driven by recent acute supply shortages on its refrigerated dough, pizza, and hot snacks platforms in North America,” the company said in a statement prepared for the Consumer Analyst Group of New York 2022 conference. Organic net sales growth for the third quarter is expected to be 2% to 3%. The FactSet consensus is for $4.613, suggesting growth of 2.1%. The company also announced a reorganization Tuesday morning, as part of its Accelerate business growth strategy. The food company has created a Strategy & Growth organization that will encompass mergers and acquisitions, consumer insights and other areas. Reporting segments have also shifted. North America Retail now includes the U.S. convenience store business. The new North America Foodservice segment will be focused exclusively on Canada and the U.S. And the Europe & Australia and Asia & Latin America segments will be combined into an International segment. General Mills stock is up 21.3% over the past year, outpacing the S&P 500 index
SPX,
-0.72%,
which is up 12.2%.