Shares of General Mills, the maker of Cheerios and other popular breakfast cereals, are taking a hit after the company lowered its sales guidance for the fiscal year. Despite posting fiscal second-quarter adjusted earnings of $1.25 per share, surpassing both the previous year's quarter and Wall Street's expectations, the net sales of $5.14 billion fell short of projections.
In a press release, General Mills Chairman and CEO Jeff Harmening acknowledged the slower-than-expected volume recovery in the second quarter, acknowledging the continued challenging consumer landscape. However, he highlighted that the company still achieved bottom-line growth due to strong holistic margin management cost savings.
As a result of the sluggish volume recovery, General Mills has revised down its fiscal-year guidance. Instead of the previously predicted 3% to 4% growth, the company now expects organic net sales to range between a 1% decrease and flat. This adjustment reflects the slower volume recovery anticipated for fiscal 2024.
Furthermore, adjusted operating profit and adjusted diluted earnings per share are forecasted to rise by 4% to 5% in constant currency, which is narrower compared to the earlier estimate of 4% to 6% growth. This revision is in line with the impact of lower organic sales growth.
Following this announcement, General Mills stock fell 2.3% to $65.21 in premarket trading. Year-to-date, the shares have already lost 20%.
Our Latest News
Allergy Therapeutics Faces Challenges in Fiscal 2023
Allergy Therapeutics faced challenges in fiscal 2023 as its revenue declined, leading to an operating loss. The company's manufacturing capacity for clinical tr...
Woodbois Share Price Falls Amidst Government Instability in Gabon
Woodbois shares fall as military coup in Gabon disrupts operations. Production suspended at Mouila facilities during national election.
Aclaris Therapeutics Faces Dramatic Decline in Shares as Key Program Fails
Aclaris Therapeutics suffers a major setback as its advanced program fails, causing a significant drop in shares. The company terminates the program and focuses...