General Mills shares slip after 1Q results miss on revenue, North America sales dip

General Mills Inc (NYSE:GIS) topped earnings estimates in its fiscal first-quarter results, but revenue fell below expectations as North America sales dipped.

The packaged foods company reported earnings of US$0.65 per share on revenue of US$4.09bn compared with US$0.69 EPS on revenue of US$3.77bn in the previous year’s first quarter.

The Minneapolis-based company reported adjusted earnings of US$0.71 per share, ahead of analyst estimates of US$0.64, but its sales fell short of the expected US$4.12bn.

In its North America segment, net sales fell by 2% to US$2.39bn.

The company reaffirmed its outlook for fiscal 2019, expecting organic net sales to be flat or up by 1%. Net sales are expected to rise between 9% to 10%, including results from recently-acquired pet food company Blue Buffalo.

“We drove organic net sales growth for the fourth consecutive quarter.  The Blue Buffalo transition is progressing well, and we continue to expect double-digit top and bottom-line growth for that business this year, excluding acquisition-related charges,” said CEO Jeff Harmening in the company’s press release.

General Mills is the company behind household product names like Cheerios, Betty Crocker, Pillsbury and Häagen-Dazs.

Shares of the company fell 5% to US$45.38 in Tuesday trading after the bell.

Story by ProactiveInvestors