General Mills Reports Lower Q1 Sales, Reaffirms Targets

General Mills reported fiscal 2027 first-quarter net sales of $4.4 billion, down 3% year over year, while organic sales were flat, reflecting the divestiture of its U.S. yogurt business and weak consumer demand. Adjusted operating profit fell 11% in constant currency and adjusted diluted earnings per share declined 13% to $0.75, broadly in line with analysts’ expectations. North America Retail sales and profit weakened, while Foodservice and International operations posted gains; Pet sales were flat but profit declined. The company reaffirmed its full-year outlook for organic sales ranging from a 1.5% decline to 0.5% growth and adjusted earnings of $3.00 to $3.20 per share, despite higher input costs and inflation concerns. UBS maintained its Sell rating, saying a return to sales growth appeared unlikely in the near term and lowering its fiscal-year earnings estimate to $3.01 per share.