General Mills echoes FedEx with a warning about weaker demand

[ad_1]

Limited Edition holiday breakfast cereal, Christmas Crunch in holiday shapes, Target store, Queens, New York. (Photo by: Lindsey Nicholson/UCG/Universal Images Group via Getty Images)

Lindsey Nicholson | Getty Images

Two big companies weighed in on persistent demand woes this week.

General Mills, which reported earnings Wednesday morning, said tepid demand and pricing pressures are compounding problems for the Dunkaroos and Bisquick maker. That echoed what FedEx said in its report after the bell Tuesday.

FedEx shares fell 12% on Wednesday, on pace for its worst day in 15 months, while General Mills' stock slipped more than 3%.

And, just like FedEx, General Mills trimmed its full-year sales outlook. With two quarters remaining in the Cheerios producer's fiscal year, the company now sees revenue down 1% to flat, compared with previous guidance of a 3% to 4% increase.

General Mills is also cutting the high end of its earnings guidance due to the lower demand forecast. It expects "a slower volume recovery in fiscal 2024, reflecting a more cautious consumer economic outlook."

While General Mills reported its eighth consecutive quarterly earnings beat, revenue came up well short of estimates: $5.14 billion vs. $5.35 billion expected, according to LSEG, formerly known as Refinitiv. It was General Mills' biggest revenue miss in eight years.

CEO Jeff Harmening said the company saw "a slower-than-expected volume recovery in the second quarter amid a continued challenging consumer landscape."

Organic sales growth was an eyesore, unexpectedly contracting 2% versus Street estimates of 3.1% positive growth. Every business segment saw disappointing sales, from consumer food to pet food, from domestic to international.

Volumes fell 4% overall – led by a 5% drop in North America retail volumes. Pricing increases continued to decelerate, contributing just 3 percentage points to sales in the latest quarter.

The company has also been boosting promotions.

"We're seeing consumers continue to display stronger-than-anticipated value-seeking behaviors across our key markets, and this dynamic is delaying volume recovery in our categories," Harmening said in a call with analysts.

[ad_2] Source link https://worldnews2023.com/business/general-mills-echoes-fedex-with-a-warning-about-weaker-demand/?feed_id=276171&_unique_id=65d28d4a6bbfb

Comments

Post a Comment

Popular posts from this blog

Real Housewives of Beverly Hills couple Kyle Richards and Mauricio Umansky ‘seperate’

Image
[ad_1] Stay ahead of the trend in fashion and beyond with our free weekly Lifestyle Edit newsletter Stay ahead of the trend in fashion and beyond with our free weekly Lifestyle Edit newsletter Real Housewives of Beverly Hills ’ Kyle Richards and Mauricio Umansky have reportedly separated after 27 years of marriage. Richards joined the popular Bravo reality series in 2010 with Umansky making regular appearances over the last 13 years. “Kyle and Mauricio have been separated for a while now but are still living under the same roof. They remain amicable as they figure out what’s next for them and their family,” a source confirmed to People on Monday (3 July). The separation will affect both Real Housewives , which is gearing up for its 13th season, and the Netflix reality series Buying Beverly Hills, which follows Umansky’s real estate business as two of their daughters work as agents. Richards has already filmed the second season of the Netflix show, according to Deadline . The I...
Read more

Pfizer RSV vaccine for infants has 'generally favorable' safety data, FDA staff say

Image
[ad_1] Blood sample for respiratory syncytial virus (RSV) test Jarun011 | Istock | Getty Images U.S. Food and Drug Administration staff on Tuesday said Pfizer's vaccine that protects infants from respiratory syncytial virus has "generally favorable" safety data. The FDA staff made the conclusion in briefing documents ahead of a meeting on Thursday when a panel of external advisors to the agency will discuss whether to recommend full approval of the RSV shot . The advisors will vote on whether Pfizer's late-stage clinical trial data on the vaccine supports its safety and efficacy. The FDA typically follows the advice of its advisory committees, but is not required to do so. The agency is slated to make a decision on whether to clear the shot in August before RSV season in the fall. If approved, Pfizer's jab would become the world's first vaccine that protects infants against RSV.  RSV usually causes mild, cold-like symptoms. But infants and older ad...
Read more

Casemiro has improved Man Utd: Maguire | The Express Tribune

Image
[ad_1] LONDON: Casemiro scored twice as Manchester United turned on the style to beat 10-man Reading 3-1 and reach the FA Cup fifth round on Saturday as Tottenham forward Son Heung-min ended his recent goal drought. On a day lacking major shocks, there were wins for Premier League strugglers Leeds, Leicester and Southampton but Fulham were held by Championship side Sunderland. United – fourth in the Premier League and within touching distance of a place in the League Cup final – produced more compelling evidence they are back on track under new manager Erik ten Hag . The home side took the lead at Old Trafford in the 54th minute when Anthony produced a defence-splitting pass to find Brazil teammate Casemiro, who lifted the ball over goalkeeper Joe Lumley. Four minutes later United were two up, when Casemiro let fly with a stunning strike from outside the box to find the bottom corner. With the home side brimming with confidence, substitute Fred produced an audacious flic...
Read more