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Food & drink

General Mills 1Q earnings to show impact of rising costs

General Mills (NYSE:GIS) is expected to report higher revenue but lower earnings when compared to the same period last year when it hands down its first quarter fiscal 2024 results on Wednesday, September 20.

For the quarter, analysts expect the Cheerios, Pillsbury and Betty Crocker parent company to post revenue of $4.88 billion compared to $4.72 billion in the year-ago quarter.

Earnings per share, however, are expected to decline slightly from $1.11 to $1.09, with headwinds including rising costs, particularly labor inflation.

The company has forecast cost inflation of 5% of the total cost of goods sold from labor inflation.

An update to the company’s fiscal 2024 guidance is not likely as the company recently reiterated its full-year outlook at the Barclays Global Consumer Staples Conference on September 6.

It continues to expect net sales growth between 3% and 4% and adjusted diluted earnings per share to increase by 4% to 6% in constant currency.

“We will continue adapting to the changing environment, and we remain on track to deliver our fiscal 2024 financial objectives,” General Mills (NYSE:GIS) CEO Jeff Harmening said in a statement earlier this month.

General Mills (NYSE:GIS) shares traded flat at $66 shortly before noon on Tuesday.

- Updated with share price -

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on Twitter @emilyjjarvie

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