USA: General Mills shares drop following weak Q2 earnings
US food group General Mills – the maker of Yoplait yogurt – has seen its share price fall 2.38% after reporting Q2 earnings below financiers’ forecasts.
The company reported adjusted diluted earnings per share of US $0.83 for the 13 weeks to the 24 November, less than the expected earnings of $0.88 a share. The overall operating profit was up 5% at $870.1m, however segment operating profit (excluding corporate expenses) dropped by 4% when compared to previous results.
Net sales were flat at $4.88bn compared to the previous year’s second quarter, however net income increased modestly to 594.9m.
General Mills attributed the lower earnings to increased raw material costs and reduced US sales. Chairman and CEO Ken Powell stated: “The second quarter was a difficult comparison to strong prior-year sales and earnings results for our businesses, In addition, the period included the highest quarterly input cost inflation we expect to see this fiscal year, and food and beverage industry sales in the US”.
Source: Just Food