In conjunction with its participation at the 2024 Barclays
Global Consumer Staples Conference, General Mills (NYSE: GIS)
provided an update on progress against its three enterprise
priorities and reaffirmed its full-year financial outlook for
fiscal 2025.
“We started fiscal 2025 focused on improving our topline growth
by delivering remarkable experiences to consumers,” said General
Mills Chairman and Chief Executive Officer Jeff Harmening. “And
while we still have work to do, we are off to a good start, with
sequentially improving retail sales trends across many of our key
categories.
“As we continue to navigate an evolving operating environment,
we remain committed to our key priorities for this year, which are
to accelerate our organic net sales growth, create fuel for
investment by generating strong levels of HMM cost savings, and
drive strong cash generation while maintaining our disciplined
approach to capital allocation,” Harmening continued. “We remain in
a strong position to deliver on our fiscal 2025 financial
guidance.”
General Mills reaffirmed its full-year financial targets for
fiscal 2025¹:
- Organic net sales are expected to range between flat and
up 1 percent.
- Adjusted operating profit is expected to range between
down 2 percent and flat in constant currency, including a 2-point
headwind from resetting incentive compensation after a
below-average payout in the prior year.
- Adjusted diluted EPS is expected to range between down 1
percent and up 1 percent in constant currency.
- Free cash flow conversion is expected to be at least 95
percent of adjusted after-tax earnings.
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 discussion of the
unavailable information.
Accelerate Strategy
General Mills is executing its Accelerate strategy to drive
sustainable, profitable growth and top-tier shareholder returns
over the long term. The strategy focuses on four pillars to create
competitive advantages and win: boldly building brands,
relentlessly innovating, unleashing scale, and standing for good.
The company is prioritizing its core markets, global platforms, and
local gem brands that have the best prospects for profitable growth
and is committed to reshaping its portfolio with strategic
acquisitions and divestitures to further enhance its growth
profile.
As part of the company’s attendance at the 2024 Barclays Global
Consumer Staples Conference, Jeff Harmening, chairman and chief
executive officer, and Dana McNabb, group president, North America
Retail, will participate in a webcasted fireside chat on Thursday,
Sept. 5, 2024, from 12:45-1:30 p.m. ET. In addition, General Mills
plans to report results for its fiscal 2025 first quarter on
Wednesday, Sept. 18, 2024, and will webcast a question-and-answer
session on those results at 8:00 a.m. CT on that day. Interested
parties can access the webcasts of the Barclays conference and the
company’s discussion of its first-quarter results at
www.generalmills.com/investors.
# # #
About General Mills
General Mills makes food the world loves. The company is guided
by its Accelerate strategy to boldly build its brands, relentlessly
innovate, unleash its scale and stand for good. Its portfolio of
beloved brands includes household names like Cheerios, Nature
Valley, Blue Buffalo, Häagen-Dazs, Old El Paso, Pillsbury, Betty
Crocker, Yoplait, Totino’s, Annie’s, Wanchai Ferry, Yoki and more.
General Mills generated fiscal 2024 net sales of U.S. $20 billion.
In addition, the company’s share of non-consolidated joint venture
net sales totaled U.S. $1 billion. For more information, visit
www.generalmills.com.
Note on Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that are based on our current expectations and assumptions. These
forward-looking statements, including the statements made by Mr.
Harmening, are subject to certain risks and uncertainties that
could cause actual results to differ materially from the potential
results discussed in the forward-looking statements. In particular,
our predictions about future net sales and earnings could be
affected by a variety of factors, including: disruptions or
inefficiencies in the supply chain; competitive dynamics in the
consumer foods industry and the markets for our products, including
new product introductions, advertising activities, pricing actions,
and promotional activities of our competitors; economic conditions,
including changes in inflation rates, interest rates, tax rates, or
the availability of capital; product development and innovation;
consumer acceptance of new products and product improvements;
consumer reaction to pricing actions and changes in promotion
levels; acquisitions or dispositions of businesses or assets;
changes in capital structure; changes in the legal and regulatory
environment, including tax legislation, labeling and advertising
regulations, and litigation; impairments in the carrying value of
goodwill, other intangible assets, or other long-lived assets, or
changes in the useful lives of other intangible assets; changes in
accounting standards and the impact of significant accounting
estimates; product quality and safety issues, including recalls and
product liability; changes in consumer demand for our products;
effectiveness of advertising, marketing, and promotional programs;
changes in consumer behavior, trends, and preferences, including
weight loss trends; consumer perception of health-related issues,
including obesity; consolidation in the retail environment; changes
in purchasing and inventory levels of significant customers;
fluctuations in the cost and availability of supply chain
resources, including raw materials, packaging, energy, and
transportation; effectiveness of restructuring and cost saving
initiatives; volatility in the market value of derivatives used to
manage price risk for certain commodities; benefit plan expenses
due to changes in plan asset values and discount rates used to
determine plan liabilities; failure or breach of our information
technology systems; foreign economic conditions, including currency
rate fluctuations; and political unrest in foreign markets and
economic uncertainty due to terrorism or war. The company
undertakes no obligation to publicly revise any forward-looking
statement to reflect any future events or circumstances.
Reminder on Non-GAAP Guidance
Our fiscal 2025 outlook for organic net sales growth,
constant-currency adjusted operating profit, adjusted diluted EPS,
and free cash flow conversion are non-GAAP financial measures that
exclude, or have otherwise been adjusted for, items impacting
comparability, including the effect of foreign currency exchange
rate fluctuations, restructuring charges, acquisition transaction
and integration costs, acquisitions, divestitures, and
mark-to-market effects. We are not able to reconcile these
forward-looking non-GAAP financial measures to their most directly
comparable forward-looking GAAP financial measures without
unreasonable efforts because we are unable to predict with a
reasonable degree of certainty the actual impact of changes in
foreign currency exchange rates and commodity prices or the timing
or impact of acquisitions, divestitures, and restructuring actions
throughout fiscal 2025. The unavailable information could have a
significant impact on our fiscal 2025 GAAP financial results.
For fiscal 2025, we currently expect: foreign currency exchange
rates (based on a blend of forward and forecasted rates and hedge
positions) and acquisitions and divestitures completed prior to
fiscal 2025 will have no material impact to net sales growth and
restructuring charges to be immaterial.
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(Investors) Jeff Siemon: +1-763-764-2301 (Media) Chelcy Walker:
+1-763-764-6364
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