General Mills beats on Q1 EPS, reaffirms FY outlook as North America softens but pet food and international sales hold up

South Africa

The Top 40 index added 0.48% yesterday to close at 97,966.3 points, while the All Share index gained 0.46% to reach 105,367.9 points. South African inflation slowed unexpectedly to 3.3% year-on-year in August from 3.5% in July, below the 3.6% forecast, driven by softer fuel and food prices. The surprise drop has increased the likelihood of a rate cut at Thursday’s SARB meeting, especially as the central bank aims to steer inflation closer to its new 3% target. The SARB has already cut rates at three of its four meetings since September 2024. Meanwhile, the rand weakened ahead of the local rate decision and ongoing U.S. trade discussions involving tariff disputes with Washington.

Europe

European equities closed flat, with the STOXX 600 ending 0.05% lower at 550.53 points amid caution ahead of the Fed’s rate decision. Puma jumped over 11% on takeover rumours involving Authentic Brands and CVC. The oil and gas sector fell 1.2% on weaker crude prices, while basic resources declined amid falling copper prices. UBS raised STOXX 600 earnings forecasts for 2025 and 2026. In the UK, average house price growth slowed to 2.8% in July, down from 3.6% in June. Rental inflation also eased to 5.7%, the slowest since December 2022.

United States

The Federal Reserve cut interest rates by 25 basis points, as widely expected, and signalled two more cuts by year-end amid rising concern over labour market softness. Chair Jerome Powell acknowledged inflation risks but shifted focus to employment headwinds. The Nasdaq and S&P 500 closed lower on mixed sentiment, while the Dow finished slightly higher. Nvidia fell 2.6% on China-related news, while Workday rose 7.2% on activist investor involvement. Lyft gained 13.1% on a Waymo partnership, while Uber dropped 5%. The Fed is also cutting 10% of staff as part of institutional reforms.

Asia

Asia-Pacific markets traded mixed following the Fed’s rate cut. Japan’s Nikkei 225 rose nearly 0.6% to a fresh record, led by strong gains in tech and real estate stocks—Resonac Holdings surged 11%, while Tokyo Electron gained 4.2%. In China, the PBOC left its seven-day reverse repo rate unchanged at 1.40% but injected 487 billion yuan into markets. HSBC expects Japan to hold rates this week, with a hike likely in October. Australia’s employment unexpectedly fell in August, with a steady unemployment rate suggesting a gradually softening labour market.

Currencies

The South African rand weakened ahead of both the SARB and Fed rate decisions, reflecting broader EM volatility. Sterling held steady after UK inflation data supported the view that the Bank of England will keep rates unchanged. The U.S. dollar remained stable after a volatile session—dropping to a 3.5-year low before rebounding—driven by shifting market expectations around future Fed rate cuts. Currency markets now await further clarity on central bank divergence, particularly between the Fed’s dovish pivot and other G10 central banks maintaining a more cautious monetary stance.

Commodities

Gold prices surged to a record high as the Fed’s dovish stance fuelled optimism about continued monetary easing. Oil remained stable despite rate cut implications, as distillate stockpiles rose by 4 million barrels—well above expectations—raising concerns about U.S. demand. Crude oil inventories fell sharply, with net imports hitting record lows and exports near a two-year high. According to JP Morgan, global oil demand averaged 104.4 million barrels per day as of 17 September, a year-on-year increase of 520,000 barrels, with year-to-date demand growth of 0.8 mbd just shy of forecasts.

Momentum Group Limited (MTM) -0.59%

Momentum Group delivered record earnings for the year ended 30 June 2025, underscoring the strength of its diversified portfolio and disciplined execution of its Impact strategy. Normalised headline earnings rose 41% to R6.26 billion, with EPS up 57%. Robust performance came from annuity profits in Momentum Investments, improved margins in Metropolitan Life, and underwriting gains in Momentum Insure and Guardrisk. Operating profit surged 52% to R5.48 billion. Strong solvency, liquidity, and cash earnings further highlight the Group’s financial resilience, supported by favourable actuarial and market dynamics.

Supermarket Income REIT PLC (SRI) -0.48%

Supermarket Income REIT PLC reported audited results for the year ended 30 June 2025, with net rental income up 6% to £113.2 million. IFRS earnings per share improved to 4.9p (FY24: -1.7p), while dividends per share increased slightly to 6.12p. Despite a 2% dip in EPRA EPS and 23% drop in headline EPS, the EPRA cost ratio improved to 13.0%. The portfolio valuation declined 8% to £1.625 billion, offset by a £96.6 million joint venture investment. EPRA NTA per share remained stable at 87.1p, indicating portfolio resilience.

Orion Minerals LLP (ORN) +26.32%

Orion Minerals has signed a non-binding term sheet with Glencore for project financing of US$200–250 million and offtake agreements for its Prieska Copper-Zinc Project. The funding, via two tranches, will support both the Uppers and Deeps developments, with Tranche A targeting a November 2025 drawdown. Glencore will receive 100% of copper and zinc concentrates from the Deeps and bulk from the Uppers. The deal includes market-aligned pricing, flexible delivery terms, and standard conditions precedent. Orion will provide a corporate guarantee, underscoring its commitment to project advancement.

Choppies Enterprises Limited (CHP) +0.54%

Choppies expects profit after tax for FY2025 to decline by 25–35%, impacted by the sale of its Zimbabwe operations, foreign exchange differences on IFRS 16 liabilities, high diesel costs, and one-off items. Continuing operations show a narrower range of -28% to +18%. A higher effective tax rate (31%) further affected earnings. Despite macroeconomic headwinds, Choppies is focused on consolidating profitability in core markets (Botswana, Namibia, Zambia), completing turnaround efforts, and maintaining financial discipline. The Board remains confident in the Group’s ability to deliver sustainable growth and enhanced shareholder value.

Mustek Limited (MST) -0.75%

Mustek has issued a trading statement for the year ended 30 June 2025, guiding headline earnings per share (HEPS) growth of up to 10%, ranging between 67.13 cents and 73.84 cents. Basic earnings per share (EPS) are expected to surge by 85% to 95%, reaching between 69.02 cents and 72.75 cents (FY2024: 37.31 cents), driven by non-recurring impacts in the prior year. Net asset value per share is anticipated between 2,840 and 2,875 cents (FY2024: 2,801 cents). Full audited results will be released on SENS on 19 September 2025.

Puma SE (PUM) +16.78%

Puma shares surged over 11% following a Manager Magazin report that Jamie Salter (Authentic Brands) and CVC’s Alex Dibelius are eyeing the Pinault family's 29% stake, potentially triggering a bidding war. However, Artemis—Pinault’s holding company—denies any active sale process, calling the report "factually false." Despite interest, Reuters previously noted Artemis won’t sell at current valuations. Puma’s share price has halved YTD, making it an opportunistic target. Salter previously beat CVC to acquire Reebok, adding strategic weight to this potential move. Puma and CVC declined to comment.

General Mills Inc. (GIS) -0.77%

General Mills reaffirmed FY guidance despite macro headwinds and softening demand in North America, with adjusted profit expected to decline 10–15% and organic sales to range from -1% to +1%. Q1 sales fell 6.8% to $4.52bn—slightly better than forecasts—while EPS of $0.86 beat estimates. Stronger pet food volumes (boosted by the Whitebridge acquisition) and solid international performance offset North American weakness. Volumes declined 16% domestically as consumers traded down. CEO Jeff Harmening noted a consumer shift toward value, protein, and nostalgic brands, positioning General Mills defensively amid economic uncertainty.

Would you prefer a full in-depth report you can read offline? Click here to download the full report.