General Mills tops quarterly earnings, revenue expectations

September 19, 2024 01:55 AM AEST | By Investing

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General Mills tops quarterly earnings, revenue expectations

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General Mills (NYSE: NYSE:GIS) surpassed expectations in its fiscal first-quarter earnings report, posting adjusted earnings per share (EPS) of $1.07, slightly above analysts' estimate of $1.05.

Revenue also exceeded projections, coming in at $4.85 billion compared to the anticipated $4.77 billion.

Despite a 1% decline in net sales and organic net sales, General Mills reaffirmed its full-year fiscal 2025 financial outlook.

The company expects organic net sales growth to range between flat and 1%, with adjusted operating profit projected to be between down 2% and flat in constant currency. Adjusted EPS is anticipated to range between a 1% decline and a 1% increase.

CEO Jeff Harmening stated: "We strengthened our core by delivering more remarkable experiences to consumers."

He also highlighted improved volume and market share trends and reiterated the company's plan to enhance growth and profitability by reshaping its portfolio, including the proposed sale of its North American Yogurt business.

General Mills continues to focus on its "Accelerate" strategy, aiming for sustainable, profitable growth. The company plans to drive innovation and improve product offerings while investing in strong brand campaigns.

Reacting to the report, analysts at TD Cowen said the company's 1Q results were "broadly in line with management's expectations for sequential volume improvement and lower profit from increased media."

"Consistent with their comments 2 weeks ago, they reiterated guidance for continued sequential improvement. The -1% result in 1Q implies realistic 1-2% growth in 2H," added the bank.

Meanwhile, Citi analysts said General Mills' EPS beat "was driven by the sales upside (a slight gross margin beat was offset by higher SG&A margin)."

"Overall, we think the quarter was fine, though after the company's seemingly positive commentary at an investor conference earlier this month, expectations might have been for a slightly larger beat (especially on EPS, which was a very modest beat by GIS's standards)," said Citi.

This article first appeared in Investing.com

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