Cereal and packaged food company General Mills (GIS) has reported financial results that beat the consensus estimates on Wall Street.
The maker of Cheerios reported earnings per share (EPS) of $0.75 U.S. for its fiscal first quarter. That topped the $0.72 U.S. expected among analysts.
Revenue in the latest quarter totaled $4.40 billion U.S., beating Wall Street’s expectation for $4.35 billion U.S. However, sales were down 3% from a year earlier.
The company said sales declined because of the divestiture of its U.S. yogurt business.
Management at General Mills reaffirmed their fiscal-year guidance, which calls for organic sales from down 1.5% to up 0.5% and earnings of $3 U.S. to $3.20 U.S. per share.
General Mills has spent much of this year lowering prices to win back consumers who are increasingly focused on value.
General Mills is grappling with persistent inflation and rising interest rates, as well as tariffs on ingredients and other products it imports from outside the U.S.
Management said that the company’s cost savings are expected to accelerate as this year progresses.
General Mills has also invested in new products, which it hopes will help to rebuild demand. Higher-protein Cheerios and premium pet food are aimed at attracting consumers.
GIS stock has declined 30% in the last 12 months to trade at $35.45 U.S. per share.
