General Mills predicts lower annual profit due to lower demand and higher costs

From Investing.com: 2024-06-26 08:40:37

General Mills, maker of Cheerios, forecasts annual profit below estimates due to lower demand for snack bars and pet food, plus higher input costs. Shares drop by 4% as company expects below long-term growth projections, citing pressured volumes and competition from private labels. Net sales fall by 7% in North America retail segment.

Peers WK Kellogg and Kraft Heinz face pressured volumes, while Campbell Soup reports upbeat quarter. General Mills also struggles with higher input costs and supply chain disruptions. Full-year adjusted profit expected to be between down 1% and up 1%, compared to analysts’ estimate of a 3.7% rise. Macroeconomic environment continues to impact core markets.

Quarterly net sales drop to $4.71 billion from $5.03 billion last year, below analysts’ expected $4.85 billion. Adjusted earnings per share at $1.01, slightly beating estimates of 99 cents. General Mills feels impact of uncertain macroeconomic environment on consumer behavior.



Read more at Investing.com: General Mills forecasts annual profit below estimates citing cost pressures By Reuters