General Mills: disappointing sales, disappointing forecasts
June 26, 2024 at 08:06 am EDT
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On Wednesday, General Mills reported quarterly sales below Wall Street expectations, and unveiled a disappointing outlook for its new fiscal year.
This morning, the American agrifood group reported net sales down 6% to $4.70 billion, including a 6% organic decline, for the fourth quarter of its offbeat fiscal year.
By way of comparison, analysts were expecting quarterly sales of $4.85 billion.
Operating profit fell by 5% to $779 million, giving a profit of $1.01 on an adjusted basis, against a consensus of 99 cents for the same period last year.
The owner of the Häagen-Dazs and Yoplait brands, whose priority is to relaunch its growth, said it was aiming for stable organic growth, or even a slight increase of 1%, in its new 2024/2025 financial year, which began at the end of May.
Earnings per share (EPS) are expected to range from a decline of 1% to an increase of 1% at constant exchange rates for the full year.
The Minneapolis (Minnesota)-based group also announced a 2% increase in its quarterly dividend to $0.60.
All these announcements were met with a cool reception on Wall Street on Wednesday morning, with the stock posting losses of over 4% in pre-market trading.
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General Mills, Inc. is one of the world's leaders in food groups. The group proposes cereal of breakfast, prepared meals, frozen vegetables, pizzas frozen, pasta ready for use, yoghurt, desserts, sauces, etc. notably under brands Cheerios, Pillsbury, Green Giant, Old El Paso, Progresso, Wheaties, Häagen-Dazs, Nature Valley, Betty Crocker and Wanchai Ferry. In addition, General Mills, Inc. sells pet food. The activity is organized around two markets:
- consumer distribution;
- catering and bakery: sale of products to restaurants, to bakeries, operators of vending machines and dishes as well as to cafeterias of schools and companies.
The United States account for 77.4% of net sales.