General Mills earnings top forecasts as price hikes support margins

Updated at 7:23 am EDT

General Mills  (GIS) - Get Free Report shares popped higher in pre-market trading after the consumer staples group posted stronger-than-expected first quarter prior to the opening bell.

The Cheerios cereal and Betty Crocker brand owner said adjusted earnings for the three months ending in August, the group's fiscal first quarter, slipped 1.8% from last year to $1.09 per share, narrowly topping Street forecasts of $1.08 per share. 

Group revenues, General Mills said, rose 3.8% to $4.9 billion, again just ahead of analysts' forecasts of a $4.88 billion tally, as margins improved by more than half a percent to 36.1%.

Management also confirmed that it sees adjusted earnings growing between 4% and 6% from the 2023 base of $4.30 per share, with input cost inflation expected at around 5%, linked largely to higher wages, following on from a similar statement to an industry conference in early September. 

 “We delivered growth on the top and bottom lines in the first quarter amid an evolving external environment characterized by moderating inflation, stabilizing supply chains, and a resilient but increasingly cautious consumer,” said CEO Jeff Harmening. “Looking ahead, we will remain focused on executing our Accelerate strategy and driving strong growth for our brands. With confidence in our plans and our ability to adapt to continued change in the consumer landscape, we are reaffirming our guidance for fiscal 2024.”

General Mills shares were marked 1.03% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $66.56 each. That move, however, would still leave the stock down more than 18% over the past six months.

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