LONDON (ShareCast) - (Sharecast News) - Shares in General Mills came under pressure on Wednesday, after the US food giant warned that "volatile" market conditions were expected to weigh heavily on earnings.
The owner of Lucky Charms, Haagen-Dazs, Betty Crocker and Pillsbury said net sales eased 2% in the year to 25 May, to $19.5bn, while adjusted diluted earnings per share fell 7% to $4.21.

Organic net sales were also 2% lower.

In the fourth quarter, sales fell 3% to $4.6bn, while adjusted diluted EPS was $0.74, a 27% slide but marginally ahead of Wall Street expectations for $0.71.

Looking to the current year, chief executive Jeff Harmening said the group's "number one goal" was to restore volume-driven organic sales growth.

"To do that, we'll invest further in consumer value, product news, innovation and brand building," he said.

But he also warned: "We expect the operating environment will remain volatile, with consumers pressured by widespread uncertainty from tariffs, global conflicts and changing regulations.

"Amid this uncertainty, we expect consumers to remain cautious and continue seeking value."

General Mills is forecasting organic net sales to be between 1% lower and 1% higher in the current year, and for adjusted diluted EPS to be between 10% and 15% weaker.

Analysts had been expecting a far more modest decline for EPS, to $3.99.

As at 1330 BST, the stock had lost 3% in pre-market trading.

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