General Mills cuts guidance, shares fall

Shares in General Mills came under pressure on Wednesday, after the US food giant beat earnings expectations but cut its full-year outlook.

The owner of Betty Crocker, Golden Grahams and Green Giant, among others, said second-quarter net sales rose 2% to $5.24bn, or by 1% on an organic basis. That was higher than forecast, with most analysts looking for $5.14bn.

Adjusted profit also beat expectations for $1.22 per share, coming in at $1.44 per share.

However, looking ahead to the full-year, the snacks-to-pet food manufacturer said higher targeted promotional investment would weight on annual profits.

As a result, it now expects annual adjusted diluted earnings per share to fall by between 1% and 3%. Its previous range was between a 1% decline and a 1% uplift.

The New York-listed stock lost 4% in pre-market trading following the results.

Chief executive Jeff Harmening said: “We made important progress accelerating our volume growth and market share trends in the first half of the year, including returning our America Pet business to growth.

“To achieve and build on these enterprise-wide gains, we’ve made incremental investments to bring consumers greater value.

“While these investments lower our profit outlook for fiscal 2025, they better position General Mills for sustainable growth in fiscal 2026 and beyond.”