LAST UPDATE 14:42
General Mills forecasts lower-than-expected earnings for the year as Cheerios cereal companies face higher costs and lower demand from inflation-stricken Americans.
The company predicts that adjusted earnings per share for the year 2023 will increase by 0% -3%.
Analysts expect earnings to rise 3.5% to $ 3.96 per share.
U.S. food companies have pushed up product prices in recent months to meet rising costs for ingredients, labor and transportation, but analysts have said further increases would be difficult to implement as consumers become frugal.
“The company expects double-digit inflation for the cost of goods sold in the fiscal year 2023,” General Mills said in a statement.
Net sales rose to $ 4.89 billion in the fourth quarter from $ 4.52 billion a year ago, up from estimates of $ 4.81 billion.
Source: Capital
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