General Mills shares fell after the consumer-foods company reported lower quarterly sales and gave tepid annual guidance, as it contends with declining volumes and a difficult pricing environment.
Shares in the maker of Lucky Charms cereal and Bisquick pancake mix slid 4.5% to $64.24 in premarket trading.
The company’s sales fell 6% last quarter from a year earlier, as volumes weakened in its pet and North American retail business and retailers reduced inventory.
The weaker top line weighed on earnings, which also took a hit from intangible asset impairments that offset a pullback in overhead costs and restructuring charges.
General Mills is guiding for volume trends to gradually improve in the year ahead and potentially drive organic sales higher, but said it doesnt expect more than 1% growth.
The company raised its quarterly dividend by 1.7% to 60 cents.
The companys quarter, by the numbers:
— Profit fell 9% to $557.5 million, or 98 cents a share, missing analysts’ projections for $562.3 million, according to FactSet.
— Adjusted earnings of $1.01 a share beat analysts’ forecasts by 2 cents.
— Sales fell 6% to $4.71 billion. Analysts had expected at least $4.85 billion.