General Mills Sales Fall, 2016 Outlook Lowered
General Mills saw softening sales in the second quarter and lowered its full-year outlook, according to its latest earnings report.
Revenue declined by 2 percent to $4.42 billion, partially due to the company divesting its Green Giant and Le Seuer packaged vegetable businesses, but also due to flagging domestic demand and headwinds from a strong dollar. The company missed Wall Streets’ expectations of $4.58 billion.
Shares of the Golden Valley-based food manufacturer tumbled on the news.
Profits ticked up slightly in constant-currency terms to $839 million and earnings per share rose to 87 cents (up from 56 cents a year ago). Despite that, the company lowered its 2016 fiscal guidance by 2 percent—or roughly 7 cents per share.
The company, like many U.S. food manufacturers, has struggled to meet changing consumer preferences for fresh, natural and organic foods. Cereals, a category General Mills is known for, has had trouble in particular as other breakfast choices like Greek yogurt and eggs have elbowed into their market share.
By midmorning, shares of General Mills were down nearly 4 percent to $57.01 per share.