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MINNEAPOLIS - General Mills (NYSE:GIS) reported better-than-expected second quarter earnings on Wednesday, but shares fell 1.3% as the food giant lowered its full-year profit outlook.
The maker of Cheerios cereal and Yoplait yogurt posted adjusted earnings per share of $1.40 for its fiscal second quarter, surpassing analyst estimates of $1.22. Revenue rose 2% year-over-year to $5.2 billion, also topping expectations of $5.14 billion.
However, General Mills reduced its full-year guidance, now projecting adjusted operating profit to decline 2-4% in constant currency, compared to its previous outlook for flat to down 2%. The company cited increased promotional investments and other headwinds in the second half of the year.
"We made important progress accelerating our volume growth and market share trends in the first half of the year, including returning our North America Pet business to growth," said General Mills Chairman and CEO Jeff Harmening. "To achieve and build on these enterprise-wide gains, we've made incremental investments to bring consumers greater value."
The company still expects organic net sales growth of 0-1% for fiscal 2025, but is now targeting the lower end of that range. Adjusted earnings per share are forecast to decline 1-3% in constant currency, down from prior guidance of -1% to +1%.
General Mills said its second quarter results benefited from certain timing factors that are expected to reverse in the second half, including retailer inventory increases. The company's North America Retail segment saw flat sales, while North America Pet sales grew 5%.
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