By Kit Norton
Shares of General Mills advanced on Wednesday after the company reported better-than-expected fourth-quarter profit and said it was focused on organic sales growth in fiscal 2027 and beyond.
The cereal and packaged foods maker posted adjusted earnings of 95 cents a share for the fiscal fourth quarter, compared to 74 cents a year ago and above Wall Street's expectations for 80 cents. Revenue grew 1% to $4.6 billion, in line with the analyst consensus call for $4.59 billion, according to FactSet.
The company said the better-than-expected quarterly earnings were primarily due to higher operating profit, a lower effective tax rate, and lower net shares outstanding.
Looking ahead, General Mills said it was looking to better its organic sales results in fiscal 2027 and over the long term. The company added it is targeting $3 billion in cost savings by fiscal 2030.
"With our price investment work behind us, our focus in fiscal 2027 is to improve our top-line growth by driving a step change in the remarkability of our brands. This includes a significant increase in innovation and renovation centered on the benefits that matter most to today's consumers," CEO Jeff Harmening said in a press release.
The company's outlook calls for fiscal 2027 earnings of $3 to $3.20 a share with organic net sales ranging from a 1.5% decline to 0.5% growth. Wall Street expects fiscal 2027 earnings of $3.13, according to FactSet.
General Mills stock rose 4% in premarket trading on Wednesday after closing down 4.3% to $34.80 on Tuesday. Shares have fallen 25% this year as the company has grappled with sluggish sales, increased cost pressure, and shifting consumer behavior.
Write to Kit Norton at kit.norton@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.