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.
Â
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.
Â
Shares of the Golden Valley-based food manufacturer tumbled on the news.
Â
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.
Â
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.
Â
By midmorning, shares of General Mills were down nearly 4 percent to $57.01 per share.