General Mills lifted forecast for FY earnings

General Mills lifted forecast for FY earnings

General Mills has lifted its forecast for full-year earnings - results it expects to post in two weeks' time.

The US food giant said yesterday (10 June) it now expects to report diluted earnings per share of US$2.68-2.69 for the year to 26 May. Its previous forecast was for EPS of $2.66-2.68. General Mills posted EPS of $2.35 for its 2011/12 financial year. The Cheerios owner will report its annual figures on 26 June.

In March, General Mills booked higher sales and profits for the first nine months of its financial year. Revenues were boosted by the group's acquisitions of Yoki Alimentos in Brazil and the Yoplait business in Canada.

However, the company then sounded a note of caution on its fourth quarter. It anticipates higher supply chain costs and input cost inflation to hit profitability in the period.

Meanwhile, the company also yesterday reiterated guidance for fiscal 2013/14 of high single-digit growth in adjusted diluted earnings per share and increased cash returns to shareholders.