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HomeMarketGeneral Mills Lifts Outlook. Investors Are Still Worried About Inflation.

General Mills Lifts Outlook. Investors Are Still Worried About Inflation.

General Mills, a packaged-food business, raised its financial predictions for the year.

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Justin Sullivan/Getty Images

General Mills raised its forecast for 2023 but said it continues to expect inflation and an economic slowdown to impact performance.

The stock fell 2.7% to $84.80 in premarket trading on Tuesday.

The food manufacturing giant (ticker: GIS) said adjusted earnings per share are expected to grow by 4% to 6% for the full fiscal year ending in May 2023. That’s higher than the earlier view of a rise of as much as 5%. Management expects organic net sales to increase 8% to 9% versus the expectation of 6% to 7% growth earlier.

“With strong first-half results and positive momentum on our business, we are increasing our full-year outlook,”
General Mills
in its press release. It also attributed the improved outlook to better prices on its goods and volume mix.

That said,  the company said it continues to expect “the inflationary cost environment and the frequency and severity of disruptions in the supply chain” to be the largest factors impacting its performance in fiscal 2023.

For the second fiscal quarter, which ended in November, General Mills reported $1.10 per share in adjusted earnings, beating the consensus among analysts tracked by
FactSet
for $1.07. Sales rose 4% to $5.22 billion and came in ahead of the analyst forecast of $5.19 billion.

Write to Karishma Vanjani at karishma.vanjani@dowjones.com

Credit: marketwatch.com

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