SHERIDAN, WYOMING – Feb. 7, 2025 – General Mills, Inc. (NYSE: GIS) announced on January 27, 2025, the completion of the sale of its Canadian Yogurt business to Sodiaal. This divestiture includes the Canadian operations of several yogurt brands, notably Yoplait and Liberté, and a manufacturing facility located in Saint-Hyacinthe, Québec.
Divestiture Details and Ongoing Transactions
The sale of the Canadian Yogurt business marks a significant step in General Mills' portfolio reshaping activities. The company is also proceeding with the planned sale of its U.S. Yogurt business to Lactalis, which remains on track and is expected to close in calendar year 2025. This transaction is contingent upon receiving the necessary regulatory approvals and fulfilling other customary closing conditions.
Updated Fiscal 2025 Outlook
Following the closure of the Canadian Yogurt divestiture and the recent North American Whitebridge Pet Brands acquisition, General Mills has provided an update to its full-year fiscal 2025 outlook¹ for adjusted diluted earnings per share (“EPS”) growth. The company now anticipates adjusted diluted EPS to decrease between 4 percent and 2 percent in constant currency. This revised projection, compared to the previous range of a 3 percent to 1 percent decrease, reflects the impact of increased interest expense associated with debt incurred to finance the North American Whitebridge Pet Brands acquisition.
Financial Performance and Strategic Focus
Despite these portfolio adjustments, General Mills has reaffirmed its outlook for fiscal 2025 organic net sales growth. The company also stated that the closure of these two transactions did not materially impact its outlook for fiscal 2025 constant-currency adjusted operating profit growth and free cash flow conversion.
¹ Financial targets are provided on a non-GAAP basis because certain information necessary to calculate comparable GAAP measures is not available. Please see below for the discussion of the unavailable information.
About General Mills
General Mills is a leading food company dedicated to making food the world loves. Guided by its Accelerate strategy, the company focuses on building its brands, driving innovation, leveraging its scale, and operating responsibly. Its extensive portfolio of well-known brands includes Cheerios, Nature Valley, Blue Buffalo, Häagen-Dazs, Old El Paso, Pillsbury, Betty Crocker, Yoplait, Totino’s, Annie’s, Wanchai Ferry, Yoki, and many more. In fiscal 2024, General Mills generated net sales of U.S. $20 billion, with an additional U.S. $1 billion in net sales from non-consolidated joint ventures.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ1 materially. These risks and uncertainties include, but are not limited2 to, supply chain disruptions, competitive dynamics, economic conditions, product development, consumer acceptance, acquisitions and dispositions, changes in capital structure, regulatory changes, product quality and safety issues, changes in consumer demand, effectiveness of marketing programs, fluctuations in supply chain costs, and foreign economic conditions. The company undertakes no obligation to publicly revise any forward-looking statement.
Reminder on Non-GAAP Guidance
The company's fiscal 2025 outlook for organic net sales growth, adjusted operating profit growth, adjusted diluted EPS growth, and free cash flow conversion are non-GAAP financial measures. These measures exclude items impacting comparability, such as foreign currency exchange rate fluctuations, acquisitions, divestitures, and a 53rd week (if applicable). Reconciliation to GAAP measures is not possible without unreasonable effort due to the unpredictable nature of foreign currency exchange rates and the timing of acquisitions and divestitures. This unavailable information could significantly impact fiscal 2025 GAAP financial results. For fiscal 2025, General Mills currently expects foreign currency exchange rates and acquisitions/divestitures to have no material impact on net sales growth, and restructuring charges to be immaterial.
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