General Mills Reaffirms Full-Year Guidance Amid International Profit Growth
General Mills reported fiscal first-quarter 2027 results that slightly exceeded expectations despite a challenging backdrop. Sales declined by 3% year-over-year to $4.4 billion, primarily due to the sale of its U.S. yogurt portfolio in June and weaker performance across domestic business units. However, international operations showed strong growth with sales up 6% and operating profit rising 14%. The company reaffirmed its full-year guidance for net sales between a decline of 1.5% and an increase of 0.5%, along with adjusted earnings per share in the range of $3 to $3.20. GAAP net income dropped sharply by 67% due largely to one-time gains from asset sales, but non-GAAP (adjusted) EPS came in at $0.75 — slightly above expectations. The company's long-term 'Accelerate' strategy aims to refocus on core brands and drive growth through strategic divestitures like the yogurt business sale. General Mills remains a popular choice for income-focused investors due to its high-yield dividend of 6.8%, which has been consistently paid since 1898.
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Topics: Business Strategy Earnings Sales Decline