Reuters
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(Reuters) -General Mills forecast annual profit below expectations on Wednesday, as weak demand for its refrigerated baked goods and snacks in the U.S. in a tariff-driven, uncertain macroeconomic background weighed on the Pillsbury-owner.
Economic uncertainty arising from President Donald Trump's shifting tariff policies has weighed on consumer spending in the U.S., challenging General Mills' efforts to drum up sales.
The company has been trying to boost demand through new products, such as a fresh version of its Blue Buffalo pet food for dogs, but investments in marketing and acquisitions are seen taking a toll on its margins.
"We expect the operating environment will remain volatile, with consumers pressured by widespread uncertainty from tariffs, global conflicts, and changing regulations," CEO Jeff Harmening said.
"Amid this uncertainty, we expect consumers to remain cautious and continue seeking value."
Shares of the Cheerios-maker were down nearly 2% before the bell.
The company expects full-year adjusted profit to be in the range of down 10% to down 15%, compared to analysts' estimates of a 4.8% decline, as per data compiled by LSEG.
For the fourth quarter ended May 25, General Mills posted sales of $4.56 billion, narrowly missing analysts' estimates of $4.59 billion, as per data compiled by LSEG.
Net sales at its North America retail segment, a major revenue contributor, were down 10%, offsetting gains from a 12% rise in General Mills' pet segment sales in the region. The two segments had recorded declines of 7% and 8%, respectively, a year ago.
The company, however, posted an adjusted profit of 74 cents per share for the reported quarter, above analysts' estimate of 71 cents per share.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Leroy Leo)
