General Mills Completes Sale of Canadian Yogurt Business and Updates Fiscal 2025 Outlook for Recent Portfolio Reshaping Activity
General Mills (NYSE: GIS) has completed the sale of its Canadian Yogurt business to Sodiaal, including Yoplait and Liberté brands and a manufacturing facility in Québec. The company expects its U.S. Yogurt business sale to Lactalis to close in 2025, pending regulatory approvals.
Following the Canadian Yogurt divestiture and North American Whitebridge Pet Brands acquisition, General Mills has updated its fiscal 2025 outlook. The company now projects adjusted diluted EPS to decline between 4% and 2% in constant currency, compared to the previous forecast of a 3% to 1% decline, primarily due to increased interest expense from the Whitebridge acquisition debt.
These transactions are not expected to affect the company's fiscal 2025 organic net sales growth outlook or materially impact its constant-currency adjusted operating profit growth and free cash flow conversion projections.
General Mills (NYSE: GIS) ha completato la vendita della sua attività di yogurt canadese a Sodiaal, inclusi i marchi Yoplait e Liberté e un impianto di produzione in Québec. L'azienda si aspetta che la vendita della sua attività di yogurt negli Stati Uniti a Lactalis si chiuda nel 2025, in attesa delle approvazioni regolatorie.
Dopo la cessione dell’attività di yogurt canadese e l'acquisizione dei marchi per animali domestici Whitebridge in Nord America, General Mills ha aggiornato le sue previsioni per l'anno fiscale 2025. L'azienda prevede ora una diminuzione dell'EPS diluito rettificato tra il 4% e il 2% a parità di valuta, rispetto alla previsione precedente di un calo dal 3% all'1%, principalmente a causa dell'aumento delle spese per interessi generate dal debito legato all'acquisizione di Whitebridge.
Queste transazioni non si prevede che influenzeranno le proiezioni di crescita delle vendite nette organiche per l'anno fiscale 2025 dell'azienda né impatteranno materialmente le previsioni di crescita dell'utile operativo rettificato a valuta costante e della conversione del flusso di cassa libero.
General Mills (NYSE: GIS) ha completado la venta de su negocio de yogur canadiense a Sodiaal, incluidos las marcas Yoplait y Liberté y una planta de fabricación en Québec. La compañía espera que la venta de su negocio de yogur en EE. UU. a Lactalis se cierre en 2025, pendientes de aprobaciones regulatorias.
Tras la desinversión del yogur canadiense y la adquisición de marcas de mascotas Whitebridge en América del Norte, General Mills ha actualizado sus perspectivas fiscales para 2025. La compañía ahora proyecta una disminución del EPS diluido ajustado entre el 4% y el 2% en moneda constante, en comparación con la previsión anterior de una disminución del 3% al 1%, principalmente debido al aumento de los gastos por intereses de la deuda por la adquisición de Whitebridge.
No se espera que estas transacciones afecten las proyecciones de crecimiento de las ventas netas orgánicas de la compañía para el año fiscal 2025 ni que impacten materialmente las proyecciones de crecimiento del beneficio operativo ajustado en moneda constante y la conversión de flujo de caja libre.
제너럴 밀스 (NYSE: GIS)는 캐나다 요거트 사업을 소디알에 매각 완료하였으며, 여기에는 요플레(Yoplait)와 리버테(Liberté) 브랜드 및 퀘벡의 제조 시설이 포함됩니다. 이 회사는 미국 요거트 사업의 락탈리스(Lactalis) 매각이 2025년에 마무리될 것으로 예상하고 있으며, 규제 승인 대기 중입니다.
캐나다 요거트 매각과 북미 화이트브리지(Whitebridge) 애완동물 브랜드 인수 이후, 제너럴 밀스는 2025 회계연도 전망을 업데이트했습니다. 이번에 회사는 조정된 희석 주당순이익(EPS)이 상수 통화로 4%에서 2% 사이로 감소할 것이라고 예상하고 있으며, 이는 이전의 3%에서 1% 감소 예측에서 변경된 것입니다. 증가된 이자 비용이 화이트브리지 인수 부채에서 기인합니다.
이번 거래가 회사의 2025 회계연도 유기적 순매출 성장 전망이나 변동 없이 조정된 운영 이익 성장과 자유현금흐름 변환 예상에 실질적인 영향을 미칠 것으로 예상되지는 않습니다.
General Mills (NYSE: GIS) a finalisé la vente de son activité de yaourt au Canada à Sodiaal, y compris les marques Yoplait et Liberté ainsi qu'une installation de fabrication au Québec. L'entreprise s'attend à ce que la vente de son activité de yaourt aux États-Unis à Lactalis se clôture en 2025, sous réserve des approbations réglementaires.
Suite à la cession de l'activité de yaourt canadien et à l'acquisition des marques pour animaux de compagnie Whitebridge en Amérique du Nord, General Mills a mis à jour ses prévisions pour l'exercice fiscal 2025. L'entreprise prévoit désormais une baisse du BPA dilué ajusté comprise entre 4 % et 2 % à taux de change constant, contre une prévision précédente d'une baisse de 3 % à 1 %, principalement en raison de l'augmentation des charges d'intérêts liées à la dette de l'acquisition de Whitebridge.
Ces transactions ne devraient pas affecter les prévisions de croissance des ventes nettes organiques de l'entreprise pour l'exercice fiscal 2025 ni avoir d'impact significatif sur les prévisions de croissance du résultat opérationnel ajusté en monnaie constante et de conversion du flux de trésorerie libre.
General Mills (NYSE: GIS) hat den Verkauf seines kanadischen Joghurtgeschäfts an Sodiaal abgeschlossen, einschließlich der Marken Yoplait und Liberté sowie einer Produktionsstätte in Québec. Das Unternehmen erwartet, dass der Verkauf seines US-Joghurtgeschäfts an Lactalis 2025 abgeschlossen wird, vorbehaltlich der behördlichen Genehmigungen.
Nach der Abspaltung des kanadischen Joghurtgeschäfts und der Akquisition der Whitebridge Pet Brands in Nordamerika hat General Mills seine Prognose für das Geschäftsjahr 2025 aktualisiert. Das Unternehmen rechnet nun mit einem Rückgang des bereinigten verwässerten EPS zwischen 4 % und 2 % bei konstanten Wechselkursen, im Vergleich zur vorherigen Prognose eines Rückgangs von 3 % bis 1 %, hauptsächlich aufgrund gestiegener Zinsaufwendungen aus der Verschuldung der Whitebridge-Akquisition.
Diese Transaktionen werden voraussichtlich keinen Einfluss auf die Wachstumsprognose der organischen Nettoumsätze des Unternehmens für das Geschäftsjahr 2025 haben und auch die Prognosen für das Wachstum des bereinigten Betriebsgewinns in konstanter Währung sowie für die Umwandlung des freien Cashflows nicht wesentlich beeinflussen.
- Completion of strategic divestiture of Canadian Yogurt business
- U.S. Yogurt business sale to Lactalis progressing as planned
- Downward revision of FY2025 EPS guidance from -3%/-1% to -4%/-2%
- Increased interest expense from Whitebridge acquisition debt
Insights
This strategic portfolio reshaping by General Mills reveals a calculated pivot away from the mature, highly competitive yogurt segment toward the higher-growth pet food category. The divestiture of both Canadian and pending U.S. yogurt operations signals a significant transformation in the company's product mix.
The increased interest expense impacting EPS guidance reflects the leverage taken on for the Whitebridge Pet Brands acquisition, demonstrating management's willingness to accept near-term earnings pressure for long-term strategic positioning. While the yogurt business has faced margin pressures and intense competition, the pet food sector offers higher growth potential and better margins, particularly in premium segments.
The maintenance of organic net sales growth and operating profit guidance, despite these major portfolio changes, suggests effective execution of the transition. The company is essentially trading slower-growth dairy assets for faster-growing pet food operations, though the higher debt service costs will create some near-term headwinds.
This transformation aligns with broader industry trends where major food companies are consolidating around core competencies and high-growth categories. The pet food market has shown resilience during economic downturns and benefits from premiumization trends, making it an attractive sector for deployment of capital.
The transaction timing, with the Canadian deal closing ahead of the U.S. operation, allows for a measured transition and helps maintain operational stability. The staggered approach also provides time to optimize the integration of Whitebridge while managing the yogurt business exit.
The divesture includes the Canadian operations of several yogurt brands including Yoplait and Liberté, as well as a manufacturing facility in
The company continues to expect the sale of its
General Mills updated its full-year fiscal 2025 outlook¹ for adjusted diluted earnings per share (“EPS”) growth to reflect the impact of the recent closures of the North American Whitebridge Pet Brands acquisition and the Canada Yogurt divestiture. The company now expects adjusted diluted EPS to range between down 4 percent and down 2 percent in constant currency, compared to the previous range of down 3 percent to down 1 percent in constant currency, reflecting the impact of increased interest expense related to debt issued to fund the North American Whitebridge Pet Brands acquisition.
The closures of these two transactions do not affect the company’s outlook for fiscal 2025 organic net sales growth and did not have a material impact on the company’s 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 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
Cautionary Statement Concerning 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 regarding the proposed transactions and the timing and impact of such transactions, 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 results 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 critical 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, adjusted operating profit growth, adjusted diluted EPS growth, 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, acquisitions, divestitures, and a 53rd week, when applicable. We are not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measure 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 the timing of acquisitions and divestitures 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 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
Source: General Mills, Inc.
FAQ
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