(AOF) – General Mills, whose action fell by almost 4% in pre-market trading, published mixed quarterly results. The American food group, owner of the Cheerios, Pillsbury and Häagen-Dazs brands, posted sales totaling $4.7 billion for its fourth fiscal quarter, down 6% and below market expectations, which were of the order of 4.85 billion dollars. Its operating profit fell 5% to $779 million, for an EPS of $1.01 on an adjusted basis, compared to a consensus of 99 cents.
The Minnesota-based firm also announced a 2% increase to $0.60 in its quarterly dividend.
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Soaring energy prices and a call for help
In the past, energy represented a fixed cost of 3% of turnover. This year, this percentage rises to 5% or even 7% for VSE-SMEs, according to Ania (National Association of Food Industries. Professionals are very worried because until the end of 2022 they generally benefit from coverage to cushion these increases However, they are not renewed for 2023 and beyond. Consequently, 25 of the main inter-professional organizations (Intercéales, Inaporc, Semae, etc.) are calling on the State for help in the face of the erosion of their margins and their capacity to operate. investment.
The State has proposed several devices, including an “electricity shock absorber”, which are considered insufficient. The organizations also deplore the failure of European negotiations to achieve a price shield to avoid distortions of competition. Agriculture and agri-food demand a maximum ceiling price of €180/MWh while many companies buy at prices above €500/MWh on the French market.