General Mills posts smaller drop in quarterly sales than expected

(Reuters) -Cheerios maker General Mills (NYSE:GIS ) posted a smaller-than-expected drop in quarterly sales on Wednesday aided by higher prices for certain snacks, helping combat a consumer demand slowdown.

It reaffirmed its fiscal year 2025 forecast, citing an uncertain economic backdrop for consumers across its core markets.

However, the company expects volume trends to gradually improve in fiscal 2025, although full-year category dollar growth is expected to be below the company’s long-term growth projections.



Shares of the company were down about 1% as General Mills saw gross margins decline in the quarter. It reported a gross margin of 34.8% owing to higher input costs and an unfavorable inventory mix.

The company's quarterly sales fell 1% to $4.85 billion from a year ago. Analysts, on average, expected a drop of 2.11% to $4.80 billion, according to LSEG data.

Source: Investing.com