General Mills Reports Q1 Fiscal 2027 Earnings with Declining Sales and Profit
General Mills (GIS) posted adjusted diluted earnings per share of $0.75 for the first quarter of fiscal 2027, a 13% decline in constant currency compared to the prior year. Net sales fell by 3%, primarily due to the divestiture of its U.S. yogurt business. Organic net sales remained flat as price and mix improvements were offset by lower volume. The company's North America Retail segment saw operating profit drop 15% amid higher input costs, while pet food sales stayed flat despite strong cat food growth being countered by a decline in dog food demand. International operations grew organic sales by 4%, driven by performance in China and India. General Mills expects full-year adjusted diluted EPS to range between $3.00 and $3.20. Management highlighted ongoing challenges, including input cost inflation expected to rise from 4% in Q1 to 6% by year-end. The company is targeting $750 million in margin management savings this fiscal year and aims for $3 billion in total cost reductions through its transformation initiative by 2030.
Tickers: $GIS
Topics: financial_performance profitability sales