01:46 PM EDT, 03/20/2024 (MT Newswires) -- General Mills ( GIS ) reaffirmed its fiscal 2024 financial guidance Wednesday after delivering a third-quarter beat, aided by higher product prices.

The packaged foods maker said it continues to expect full-year organic net sales to range between down 1% and flat. It also expects adjusted operating profit and adjusted per-share earnings each to rise 4% to 5% in constant currency.

"We continue to navigate an evolving operating environment, including moderating but still positive inflation, changing consumer channel preferences, and stabilizing competitive supply chains," Chief Executive Jeff Harmening said in prepared remarks for the company's fiscal third-quarter earnings call.

The Cheerios maker has seen a rise in "value-seeking behaviors" from consumers, impacting the channels they shop and the size of their basket, Harmening said. General Mills ( GIS ) is monitoring geopolitical situations both in the US and worldwide, though those dynamics have had a limited effect on the company's business so far, he added.

Adjusted EPS rose to $1.17 in the quarter through Feb. 25 from $0.97 a year earlier, topping Wall Street's $1.05 view. The company attributed the increase to higher adjusted operating profit and a lower adjusted effective tax rate, partially offset by higher net interest expense.

Net sales fell 1% to $5.1 billion but exceeded the Street's $4.97 billion estimate. The company said lower pound volume was partially offset by favorable net price realization and mix. Organic net sales in the quarter were 1% below year-ago results that increased double digits, General Mills ( GIS ) said. The company's shares were up 1% in Wednesday afternoon trade.

Third-quarter net sales for the North American retail segment rose to $3.24 billion from $3.23 billion, while North American Foodservice gained 1% to $551.7 million. Net sales for the pet and international segments fell 3% each to $624.5 million and $680.1 million, respectively.

In the ongoing three-month period, the company expects a "meaningful headwind" from the comparison against favorable trade expense timing a year earlier, Chief Financial Officer Kofi Bruce said in prepared remarks. "This dynamic will present roughly a three-point headwind to net sales growth and a double-digit headwind to adjusted operating profit growth in this year's fourth quarter," he said.

General Mills ( GIS ) also expects continued input cost inflation on its cost of goods sold in the quarter, Bruce said.

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