General Mills (GIS) -) posted stronger-than-expected fiscal-first-quarter earnings and revenue, with the consumer-staples group's profit margins widening.
The owner of brands including Cheerios cereal and Betty Crocker baking mixes reported that adjusted earnings for the three months ended in August slipped 1.8% from a year earlier to $1.09 a share, narrowly topping the Wall Street consensus forecast of $1.08 a share.
Group revenue, General Mills said, rose 3.8% to $4.9 billion, again just ahead of analysts' forecast of a $4.88 billion tally, as margins improved by more than half a percentage point to 36.1%.
Management also confirmed that it saw adjusted earnings growing between 4% and 6% from the 2023 base of $4.30 a share. Input-cost inflation is again expected at around 5%, linked largely to higher wages. The report followed on from a similar statement to an industry conference in early September.
“We delivered growth on the top and bottom lines in the first quarter amid an evolving external environment characterized by moderating inflation, stabilizing supply chains, and a resilient but increasingly cautious consumer,” Chief Executive Jeff Harmening said in a statement.
“Looking ahead, we will remain focused on executing our Accelerate strategy and driving strong growth for our brands. With confidence in our plans and our ability to adapt to continued change in the consumer landscape, we are reaffirming our guidance for fiscal 2024.”
General Mills shares were marked 1.2% lower in early Wednesday trading to change hands at $65.10 each, extending the stock's six-month decline to around 19.3%.
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