Increased market competition hasn’t stopped haunting General Mills, Inc. (NYSE:GIS). Recently it announced its quarterly sales figures, which were lower than the expectations. As per the reports, it was the sixth consecutive quarter when General Mills did report lower sales figures.
What’s The Core Reason Behind This:
Even though there are a lot of reasons that can be pointed out, but the one that played a major role in lower sales figures was strong dollar position. The overall sale was negative, but still it managed to top the earnings expectations. General Mills announced on Wednesday that its sales in U.S. elevated 1% in the third quarter due to increased sales of snacks and yogurt. As soon as the news hit the market, shares of General Mills rose 1% in the premarket trading.
It is known for selling Yoplait yoghurts in United States. General Mills enjoyed a celebrity status in this sector for years, but last few quarters have not gone right for the company. Couples of its prominent products like frozen foods and cereals have witnessed a huge plunge in the national sales. Primary reason for this plunge is nothing but the shift in the consumer approached who have decided to use healthier products lately.
The company has decided to expand its operations into food segments that grow faster i.e. organic and natural food. It has asked for support from other companies like Campbell Soup and ConAgra Foods to enter in this field. It has been thinking the same for quite a long time. As per the reports, General Mills, Inc. (NYSE:GIS) stated in September 2014 that it would acquire Annie’s Inc for $820 million. Annie’s Inc is active in organic food making. The company announced on Wednesday that under its ‘Catalyst’ program, it would cut almost 800 jobs in United States by the end of fiscal 2015.
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