MINNEAPOLIS - General Mills , Inc. (NYSE: NYSE:GIS) reported a mixed bag in its fourth-quarter earnings, surpassing Wall Street's earnings per share (EPS) expectations by a cent but falling short on revenue targets.
The food giant posted adjusted EPS of $1.01, marginally higher than the analyst consensus of $1.00. However, revenue for the quarter was reported at $4.71 billion, missing the consensus estimate of $4.86 billion.
The company's shares fell 4% in response to the revenue miss and a cautious sales outlook for fiscal 2025. Amid an uncertain economic environment, General Mills anticipates volume trends to improve gradually, with organic net sales expected to be flat to up 1 percent. The company aims to drive growth through innovation and increased brand-building investment, despite projecting adjusted operating profit to be down 2 percent to flat in constant currency from the $3.6 billion reported in fiscal 2024.
General Mills' CEO Jeff Harmening highlighted the company's resilience and efficiency in navigating a challenging operating environment in fiscal 2024. "We delivered on our updated guidance in fiscal 2024 by pivoting our plans and enhancing our efficiency," Harmening stated. He also emphasized the company's commitment to accelerating organic net sales growth and delivering remarkable experiences across its portfolio of leading brands.
For the fourth quarter, General Mills reported a 6 percent decline in net sales to $4.7 billion, with organic net sales also down by the same percentage. The company's adjusted operating profit of $800 million was down 10 percent in constant currency, primarily due to lower adjusted gross profit dollars, partially offset by lower selling, general, and administrative expenses.
Looking ahead, General Mills outlined its fiscal 2025 financial targets, expecting organic net sales to range between flat and up 1 percent. Adjusted diluted EPS is projected to range between down 1 percent and up 1 percent in constant currency from the base of $4.52 earned in fiscal 2024. The company also anticipates a free cash flow conversion of at least 95 percent of adjusted after-tax earnings.
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