General Mills (GIS.N) on Wednesday forecast full-year profit that came in largely below analysts’ estimates as the Cheerios cereal maker battles with slow demand for its ready-to-eat cereals, snacks and meal kits due to higher prices.
Shares of the company fell 4% in premarket trading after General Mills reported a 6% dip in sales volumes in the fourth quarter.
Price hikes to offset input cost inflation has aided top-line growth at U.S. packaged food makers. However, in recent quarters volumes have dipped signaling that inflation-hit customers were pushing back against price increases.
General Mills forecast fiscal 2024 organic net sales to rise 3% to 4%, while it reported growth of 5% in fiscal 2023.
It expects adjusted per-share profit growth for fiscal 2024 to range between 4% and 6%. Analysts polled by Refinitiv were expecting a 5.9% rise to $4.49 per share.