The cereal and packaged foods maker posted adjusted earnings of 95 cents a share in its fiscal fourth quarter, topping analyst expectations of 80 cents
Cheng Xin / Getty Images
General Mills $GIS reported fourth-quarter adjusted earnings of 95 cents a share on Wednesday. That beat analyst estimates of 80 cents a share, according to The Wall Street Journal. The company also announced a plan to cut $3 billion in cumulative costs by fiscal 2030.
Revenue rose 1% to $4.61 billion for the quarter ended May 31. Analyst expectations called for $4.59 billion in revenue.
Two large non-cash items weighed on General Mills' bottom line: $1.8 billion in goodwill and brand intangible asset charges and a $1 billion valuation loss tied to the pending sale of its Brazil business, together pushing the company from a $294 million profit a year earlier to a net loss of $2.01 billion. On an adjusted basis, the company's gross margin improved 150 basis points to 34.2%.
"We finished fiscal 2026 on a positive note, delivering fourth-quarter adjusted results that met our expectations while continuing to strengthen our foundation to position General Mills for long-term success," CEO Jeff Harmening said in a statement.
To reach its $3 billion savings goal by fiscal 2030, the company is drawing on two programs: its existing Holistic Margin Management productivity effort, which is expected to account for roughly $2 billion, and a separate global transformation initiative aimed at overhauling supply chain operations and simplifying how the business runs, the company said. General Mills expects to deliver at least $750 million in savings in fiscal 2027 alone.
Shares jumped roughly 5% in premarket trading Wednesday.
For fiscal 2027, General Mills projected adjusted diluted earnings of $3.00 to $3.20 per share. Analysts had expected $3.13 per share, according to Barron's. On the sales side, General Mills guided for organic net sales somewhere between a 1.5% contraction and 0.5% expansion, after recording a 2% organic decline in fiscal 2026.
The North America Retail segment — home to brands including Cheerios, Pillsbury, and Betty Crocker — posted quarterly net sales of $2.5 billion, a 4% year-over-year drop that nonetheless marked a meaningful improvement from the 10% slide recorded in the same period a year prior, the company said. Full-year net sales totaled $18.4 billion, down 5% from the prior year.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.
