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The Key Takeaways
- General Mills’ shares dropped Wednesday, after the company reduced its adjusted profit forecast for fiscal 2025.
- Second-quarter sales and net income rose year-over-year and beat analysts' expectations.
- A higher investment budget is expected to result in a decline of adjusted profits from the previous year.
General Mills shares dropped Wednesday morning as the company cut its outlook for adjusted profits in fiscal 2025, despite a second quarter that exceeded analyst expectations.
Visible Alpha reports that the cereal and snack maker, General Mills, recorded $5.24billion revenue. That’s 2% more than analysts anticipated and $5.14billion above their $5.14billion. General Mills reported a net profit of $795.7million, a 34% increase and far above the $683.3million expected by analysts.
General Mills has lowered their fiscal 2025 forecast for adjusted earnings per share to between a 3% and 1% decrease in constant currency terms compared to fiscal 2024. It had previously projected that adjusted earnings per share (EPS) would range from a 1% decline to a 1% increase in constant-currency terms.
The company expects organic net sales to grow at the lower end its previously stated range, from flat to up 1 %. “due to increased promotional investment.”
General Mills’ shares dropped about 4% shortly after Wednesday mornings opening bell, moving into the negative 2024 territory.
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