General Mills beats estimates as cost savings offset volumes

Investing.com -- General Mills Inc. (NYSE: GIS) reported first-quarter results that exceeded analyst expectations, with adjusted earnings per share of $0.75 beating the consensus estimate of $0.72, while revenue of $4.4 billion topped forecasts of $4.34 billion.

The company's net sales declined 3% from the prior year, primarily due to the divestiture of its U.S. yogurt business, while organic net sales remained flat. Revenue fell from $4.5 billion in the year-ago quarter.

Adjusted diluted EPS of $0.75 decreased 13% in constant currency, driven by higher input costs and lower volume, partially offset by favorable pricing and cost savings initiatives.

"We are off to an encouraging start in fiscal 2027, driving improved topline performance with stronger product innovation and renovation focused on the benefits consumers are looking for today," said CEO Jeff Harmening.

Shares rose 1.2% following the results.

The company reaffirmed its full-year fiscal 2027 outlook, projecting organic net sales between down 1.5% and up 0.5%, with adjusted diluted earnings expected in the range of $3.00 to $3.20 per share. The midpoint of $3.10 aligns with the company's previous guidance as it navigates a challenging consumer environment.

General Mills expects to generate at least $750 million in savings from its cost management programs in fiscal 2027 to offset input cost inflation. The North America Retail segment saw sales decline 7% to $2.4 billion, while North America Pet sales remained flat at $613 million. International segment sales increased 4% to $794 million.

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