General Mills, Inc. 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, slightly 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. This resulted in a 4% decline in the company’s shares as investors reacted 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. CEO Jeff Harmening highlighted the company’s resilience and efficiency in navigating a challenging operating environment in fiscal 2024, mentioning that they were able to deliver on their updated guidance by pivoting their plans and enhancing efficiency.
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. Despite the challenges faced in the fourth quarter of fiscal 2024, General Mills remains optimistic about its ability to grow and deliver remarkable experiences across its portfolio of leading brands in the coming years.
While General Mills experienced a revenue miss in its fourth-quarter earnings report, the company remains focused on driving growth and innovation to overcome the challenges presented by the economic environment. With a strategic outlook for fiscal 2025 and a commitment to accelerating organic net sales growth, General Mills is poised to navigate the uncertain times ahead and emerge stronger in the marketplace.