General Mills
reported fiscal first-quarter earnings and sales that slightly beat analysts’ estimates and reiterated fiscal-year guidance.
General Mills
(ticker: ticker GIS) on Wednesday posted adjusted earnings of $1.09 a share, falling from the $1.11 recorded in the year-ago quarter but inching past Wall Street’s call for $1.08.
Net sales for the maker of Cheerios and other breakfast cereals, Betty Crocker, and Yoplait yogurt, were $4.9 billion, jumping from the year prior and higher than the $4.88 billion analysts expected, according to FactSet. Net sales in the company’s North America retail, North America foodservice, and international segments rose in the quarter, while pet segment sales were flat.
“We delivered growth on the top and bottom lines in the first quarter amid an evolving external environment characterized by moderating inflation, stabilizing supply chains, and a resilient but increasingly cautious consumer,” said CEO Jeff Harmening in the earnings release.
The company reaffirmed fiscal 2024 guidance that includes adjusted operating profit and adjusting earnings increasing 4% to 6% in constant currency and organic net sales rising 3% to 4%.
“GIS’s results are a broad read-through to our packaged food players and give perspective into expectations for 2H’CY23,” wrote RBC Capital Markets analyst Nik Modi in a report. “Volume recovery is proving to be difficult in North America and internationally, while pressure on consumers weighs on Pet, but mobility benefits Foodservice.” Modi rates shares at Sector Perform with a price target of $78.
Shares of General Mills were gaining 0.9% to $66.48 in premarket trading. Coming into Wednesday’s session, the stock has fallen 21% this year.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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