(Adds details, analyst comment, updates shares)
Dec 20 General Mills Inc reported
lower-than-expected quarterly profit and revenue as intense
competition and lower spending on promotions hurt sales of its
Yoplait yogurt and Progresso soups in the United States, its
Shares of the Cheerios breakfast cereal maker, which also
slashed its 2017 organic sales forecast, fell as much as 4
percent to $60.52 on Tuesday.
General Mills said it expects 2017 sales, excluding
acquisitions and divestitures, to decline 3-4 percent from 2016.
It had previously anticipated sales would be flat to down 2
The Minneapolis-based company said a decline in demand for
Yoplait, Progresso and Pillsbury refrigerated dough hurt sales
by 9 percent in its U.S. business in the second quarter ended
General Mills gets about 60 percent of its sales from the
Retail sales of Yoplait yogurt, which have declined in the
past several quarters, fell 18 percent during the quarter due to
intense competition from rivals such as Chobani and Dannon, the
U.S. subsidiary of French food company Danone SA.
General Mills revamped its Yoplait Greek 100 in June with
more protein and less sugar as consumers of traditional light
yogurt pivot to Greek yogurts, which are touted as healthier.
Yogurt will weigh on sales for many more quarters, Edward
Jones analyst Brittany Weissman wrote, noting that the company
was in early stages of updating its products and introducing new
ones such as organic and drinkable yogurts.
Net sales fell 7 percent to $4.11 billion. Analysts on
average had expected $4.23 billion, according to Thomson Reuters
Net earnings attributable to the company fell to $481.8
million, or 80 cents per share, from $529.5 million, or 87 cents
per share, a year earlier.
Excluding certain items, the company earned 85 cents per
share, missing analysts' average estimate by a cent.
(Reporting by Gayathree Ganesan in Bengaluru; Editing by
Martina D'Couto and Sayantani Ghosh)