Investing.com -- General Mills (NYSE:GIS) has reported a decline in adjusted income in its first quarter, but still topped expectations thanks to stabilizing supply chains and consumer resilience in the face of inflationary pressures.
In constant currency, adjusted diluted earnings per share for the three months ended on August 27 slipped by 1% compared to the same period last year to $1.09, although this was still above Bloomberg consensus estimates of $1.08.
Undergirding the bottom-line return at the Minneapolis-based food processing group was a 4% year-on-year jump in net sales to $4.90 billion, beating analysts' forecasts of $4.88B. Higher price realization and mix partially offset lower pound volume, the owner of brands like Cheerios cereal and Betty Crocker cake mix noted.
Meanwhile, General Mills backed its 2024 fiscal year outlook, saying that it expects to drive organic net sales growth through "strong marketing, innovation, in-store support, and net price realization." The rate of input cost inflation is seen moderating as well, while disruptions in supply chains are predicted to abate.
In a statement, Chief Executive Officer Jeff Harmening said the external operating environment is "evolving," with consumers "resilient but increasingly cautious."