(Telestock) – General Millsone of the most important US multinationals active in food production, has closed its first trimester of the 2025 financial year (ended August 25, 2024) with net sales down 1 percent to $4.84 billion, driven by unfavorable net price realization and mix. Net sales also organic fell 1 percent. Analysts on average had expected a 2.1 percent decline to $4.80 billion, according to LSEG data.
The gross margin decreased 130 basis points to 34.8 percent of net sales, driven primarily by input cost inflation, unfavorable mark-to-market effects and unfavorable net price realization and mix, partially offset by cost savings from Holistic Margin Management (HMM).
The net profits of 580 million euros fell 14 percent and EPS fell 10 percent to 1.03 euros, driven mainly by lower operating profit, higher net interest expense and a higher effective tax rate. TheRectified EPS of 1.07 euros was down 2 percent at constant currency.
“Our maxim priority in fiscal 2025 is to accelerate organic sales growth net and we have made the expected progress towards this goal in the first quarter on several fronts, with much more work to do,” said the CEO Jeff Harmening.
The company has confirmed the prospects for the entire fiscal year 2025.