General Mills Q1 sales, profit beat estimates; reaffirms 2027 outlook
GIS•Drivers of the quarter
The company said the U.S. yogurt divestiture drove the reported net sales decline. It attributed declines in adjusted operating profit and segment profits to higher input costs. General Mills also said lower volume contributed to profit declines in the North America Retail and Pet segments.
Q1 results beat estimates
General Mills said fiscal first-quarter sales declined 3%, but beat analyst expectations. Adjusted EPS for fiscal Q1 also beat analyst expectations, even though it fell 13% in constant currency.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q1 Sales | Beat | $4.39 bln | $4.33 bln (14 Analysts) |
| Q1 Adjusted EPS | Beat | $0.75 | $0.72 (15 Analysts) |
| Q1 EPS | $0.74 | ||
| Q1 Gross Margin | 33.90% | ||
| Q1 Adjusted Gross Margin | 33.30% | ||
| Q1 Operating profit | $633.60 mln |
Outlook reaffirmed for fiscal 2027
General Mills reaffirmed its full-year fiscal 2027 outlook.
- Organic net sales: down 1.5% to up 0.5%
- Adjusted operating profit: down 13% to down 8% in constant currency
- Adjusted diluted EPS: between $3.00 and $3.20
