General Mills beats quarterly sales estimates on steady demand

General Mills reported first-quarter fiscal 2027 results that exceeded analyst expectations for sales and earnings despite a decline in total revenue. Net sales fell 3% to approximately $4.4 billion, a decrease attributed to a U.S. yogurt divestiture, though organic net sales remained flat.

Adjusted diluted earnings per share reached $0.75, surpassing the estimated 72 cents. While adjusted profit saw a decline, the company reaffirmed its full-year outlook. Management noted that resilient demand for at-home food products and price increases helped offset higher input costs, such as packaging metals like aluminum and steel.

The company is currently executing cost-cutting measures through its Holistic Margin Management program and global Transformation initiative, aiming to generate at least $750 million in savings this year. While the North America Retail segment saw a 7% decline in sales, international sales grew by 4%, supported by markets in India and China.