General Mills Inc.’s stock GIS slid 4% premarket Wednesday, after the parent of brands including Cheerios, Nature Valley, Blue Buffalo pet products and Pillsbury, posted a steep decline in profit and weaker-than-expected sales for its fiscal fourth quarter. The company had net income of $614.9 million, or $1.03 a share, for the quarter to May 28, down from $822.8 million, or $1.35 a share, in the year-earlier period. Adjusted per-share earnings came to $1.12, ahead of the $1.07 FactSet consensus. Sales rose 3% to $5.030 billion from $4.891 billion a year ago, below the $5.177 billion FactSet consensus. The sales rise was due to “positive organic net price realization and mix,” said the company. Gross margin fell 189 basis points to 34.4% of sales, driven by higher input costs and unfavorable mark-to-market effects, which were partially offset by higher pricing. The board approved a 9% increase in the company’s dividend which will be effective with the August payment. Looking to fiscal 2024, the company is expecting adjusted EPS to rise 4% to 6% in constant currency. The stock has fallen 3.5% in the year through Tuesday’s close, while the S&P 500 SPX has gained 14%.
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