General Mills Inc. (NYSE:GIS) reported first-quarter adjusted earnings and revenue above analyst expectations while reaffirming its fiscal 2027 outlook.
Adjusted earnings per diluted share were $0.75, compared with the consensus estimate of $0.72. Revenue was $4.4 billion, above expectations of $4.34 billion but down from $4.5 billion in the same period a year earlier.
Net sales declined 3% year over year, primarily reflecting the divestiture of the company’s U.S. yogurt business. Organic net sales were unchanged.
Shares of General Mills rose 1.2% following the results.
Adjusted Earnings Decline 13%
Adjusted diluted earnings per share declined 13% in constant currency. General Mills attributed the decrease to higher input costs and lower volumes, partially offset by pricing and cost-saving measures.
“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,” Chief Executive Officer Jeff Harmening said.
General Mills expects its cost-management programmes to generate at least $750 million in savings during fiscal 2027, which the company intends to use to help offset input cost inflation.
Fiscal 2027 Guidance Reaffirmed
General Mills maintained its fiscal 2027 outlook, forecasting organic net sales growth in a range of negative 1.5% to positive 0.5%.
The company continues to expect adjusted diluted earnings per share of between $3.00 and $3.20. The midpoint of the range is $3.10.
By business segment, North America Retail sales declined 7% to $2.4 billion, while North America Pet sales were unchanged at $613 million.
International sales increased 4% to $794 million.
General Mills stock price
