General Mills Inc (NYSE:GIS, ETR:GRM) shares dipped at the open after it reported fourth-quarter organic sales that were lower than expected.
During its fourth quarter, organic sales were approximately 6% lower than consensus estimates of a 3.5% decline.
That sent shares of the consumer goods giant falling over 5% in early Wednesday trading.
Quarterly net sales dropped by a larger-than-expected 6% to $4.71 billion. Adjusted earnings per share stood at $1.01, slightly exceeding estimates.
The Cheerios maker forecasted annual profit below estimates and the larger-than-expected quarterly sales decline due to reduced demand for snack bars and pet food, along with higher input costs.
The company anticipates its annual dollar value growth to fall short of long-term projections.
North America retail segment sales fell 7% during the quarter, while sales experienced double-digit percentage declines in both Brazil and China.
CEO Jeff Harmening highlighted ongoing macroeconomic uncertainties and increased competition from lower-priced private labels as factors impacting sales.
The company forecasts full-year adjusted profit to range from a 1% decline to a 1% increase, contrasting with analysts' expectations of a 3.7% rise, as reported by LSEG data.