By Micah Maidenberg

General Mills Inc. said it expects consumer demand to slip in its new fiscal year and warned of expense inflation.

The packaged-food company on Wednesday said it believes comparable sales will be down 1% to 3% during its 2022 fiscal year versus the previous period.

"The company expects at-home food demand will decline year over year in fiscal 2022 across most of its core markets, though will remain above pre-pandemic levels," General Mills said. "Away-from-home food demand is expected to continue to recover in fiscal 2022, though not fully to pre-pandemic levels."

Adjusted profits are expected to either be flat or fall as much as 2% during the year versus earnings of $3.79 a share on that metric for the recently concluded 2021 fiscal year.

Total cost inflation is expected to amount to about 7% of the company's cost of goods sold expense line.

General Mills said it is addressing the "inflationary environment" through cost-saving measures, including price increases for most of its portfolio that already have been announced.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

06-30-21 0748ET