Shares of General Mills (GIS) are down 1% after the packaged food company reported quarterly financial results that showed slowing growth in both its sales and profits.
For what was its fiscal first quarter, General Mills reported earnings per share (EPS) of $1.07 U.S., which topped Wall Street’s forecast of $1.06 U.S.
Revenue in the quarter totaled $4.85 billion U.S., which narrowly beat the consensus expectation among analysts of $4.80 billion U.S.
Despite beating Wall Street forecasts, General Mills’ fiscal Q1 sales were down 1% from a year earlier and earnings declined 2% from $1.09 a share in the same period of 2023.
Additionally, General Mills reported that its gross margin decreased 130-basis points to 34.8% in the quarter, mainly due to rising input costs sparked by inflation.
The results show that growth at the company known for its Cheerios cereal and Betty Crocker baking products is beginning to slow.
Looking ahead, General Mills reaffirmed its financial guidance for its current fiscal 2025 year.
The company expects net sales to be flat to up 1% and earnings per share to be down 1% to up 1%.
Prior to today (Sept. 18), the stock of General Mills had risen 13% over the last 12 months to trade at $74.50 U.S. per share.
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