Key Takeaways
- General Mills saw sales and profits drop from the same time last year as lower prices and higher costs weighed on the breakfast and snack food maker’s margins.
- The company affirmed its outlook for the full fiscal year, noting that customers face a “uncertain macroeconomic backdrop.”
- Last week, the company announced plans to sell its U.S. and Canadian yogurt businesses including brands like Yoplait to a pair of French dairy companies.
General Mills (GIS) reported sales and profits dropped in its fiscal first quarter from the same time last year as lower prices and higher costs weighed on the breakfast and snack food giant’s margins.
Total revenue for the quarter came in at $4.85 billion, just above analyst estimates but down 1% from the same time last year. Net income of $579.9 million fell from $673.5 million a year ago, and missed analyst estimates compiled by Visible Alpha.
The company credited an “unfavorable net price realization and mix” for the decline in sales. The company’s sales volume decreased in North America, while international sales volume rose but was partially offset by lower prices.
General Mills Affirms Outlook Amid ‘Uncertain Macroeconomic Backdrop’
The company behind dozens of brands including Cheerios, Pillsbury, and Blue Buffalo pet food affirmed its outlook for fiscal 2025, projecting organic net sales flat to up 1%, while adjusted earnings per share (EPS) is projected to be within a range of up or down by 1% compared to fiscal 2024. The company said it expects sales volume to improve over the course of the year, though customers face an “uncertain macroeconomic backdrop.”
General Mills’ outlook didn’t include the impact of last week’s announcement that it plans to sell its yogurt business including brands like Yoplait and Go-Gurt to Lactalis and Sodiaal, a pair of French dairy companies, for a combined $2.1 billion. Lactalis will acquire the U.S. operations, while Sodiaal will buy the company’s Canadian yogurt operations, including manufacturing facilities in Tennessee, Michigan, and Quebec.
General Mills shares were little changed in early trading Wednesday, and have gained close to 15% since the start of the year.