General Mills swings to Q4 operating loss, quarterly sales tick up

(Sharecast News) - Food manufacturer General Mills said on Wednesday that it had swung to an operating loss in Q4, despite seeing net sales tick up 1% in the period to $4.6bn, and issued 2027 guidance that included improved organic growth and greater efficiency as it targets $3bn in cost savings by 2030.

In the fourth quarter, General Mills said organic sales were broadly unchanged from last year, leading the group to report an operating loss of $2.1bn, down from the prior year's $3.3bn operating profit, reflecting noncash goodwill and brandintangible charges and a valuation loss linked to the planned divestiture of its Brazil business.

Adjusted operating profits rose 13% in constant currency to $705m, while diluted losses per share came to $3.74, compared with earnings per share of $0.53 a year earlier. On a constant currency basis, adjusted diluted EPS increased 27% to $0.95.

For the full year, net sales fell 5% to $18.4bn, including a sixpoint drag from divestitures and acquisitions and a twopoint benefit from the 53rd week. Organic net sales were down 2%, while operating profits dropped 73% to $886m, driven by the same noncash charges.

FY adjusted operating profits declined 16% in constant currency to $2.8bn. Diluted losses per share came in at $0.16, versus EPS of $4.10 last year, with adjusted diluted EPS down 16% to $3.55 in constant currency.

As of 1400 BST, General Mills shares were up 4.48% in pre-market action at $36.36 each.

Reporting by Iain Gilbert at Sharecast.com