Company Reaffirms Fiscal 2024 Outlook at
CAGNY
At the Consumer Analyst Group of New York (CAGNY) 2024
Conference, General Mills, Inc. (NYSE: GIS) discussed its
Accelerate strategy and approach to driving long-term sustainable
growth and top-tier shareholder returns. The company also
reaffirmed its full-year fiscal 2024 financial outlook.
Accelerate Strategy Has Driven Strong
Results
General Mills is executing its Accelerate strategy to drive
sustainable, profitable growth and top-tier shareholder returns
over the long term. Through clear focus on the company’s core
markets, global platforms and local gem brands, along with its
proven portfolio reshaping capability, General Mills drove
financial results that met or exceeded its long-term goals over the
past five fiscal years.
“We are confident in our Accelerate strategy and remain focused
on driving growth for our brands,” said Jeff Harmening, chairman
and CEO, General Mills. “We’ve responded with agility to an
evolving consumer environment while investing in the capabilities
needed to compete effectively in the years to come.”
Driving Long-term Sustainable
Growth
General Mills is focused on driving sustainable growth through
the pillars of its Accelerate strategy:
- Boldly Building Brands: General
Mills is continuing to invest in brand building to support a
portfolio of iconic brands, including nine brands that each
generate more than $1 billion in retail sales. The company’s media
investment increased by 41 percent between fiscal 2018 and fiscal
2023, and it was up high-single digits through the first half of
fiscal 2024.
- Relentlessly Innovating: With a
stabilizing supply chain environment, General Mills is increasing
its level of new product innovation with exciting launches across
Cereal, Snacking, Meals and Pet Food. And with the innovation
spectrum also encompassing inorganic growth opportunities, the
company’s “always on” approach to portfolio shaping includes both
scaled M&A as well as investments in emerging platforms through
its Gold Medal Ventures division.
- Unleashing Our Scale: By investing
in a scaled digital infrastructure, General Mills has created
world-class capabilities that are driving growth and profitability
in areas such as E-commerce, data-driven marketing and supply chain
digitization.
- Standing for Good: The company is
committed to standing for good with a focus on improving food
security, protecting people, strengthening communities and
regenerating our planet. General Mills has committed to advance
regenerative agricultural practices on one million acres of land by
2030, with 500,000 acres already engaged in its programs through
fiscal 2023.
Delivering Top-tier Shareholder
Returns
General Mills is creating shareholder value through a consistent
balance of net sales growth, margin expansion, cash conversion and
cash returns to shareholders. The company generated 12 percent
compound annual total returns to General Mills shareholders over
the past five years, outpacing its food peer median over the same
timeframe.
Reaffirming Full-year Fiscal 2024
Outlook
Amid an evolving external environment, the company reaffirmed
its full-year fiscal 2024 financial targets:
- Organic net sales are expected to range between down 1 percent
and flat.
- Adjusted operating profit and adjusted diluted EPS are expected
to increase 4 to 5 percent in constant currency.
- Free cash flow conversion is expected to be at least 95 percent
of adjusted after-tax earnings.
A webcast of the company’s CAGNY 2024 presentation featuring
Chairman and Chief Executive Officer Jeff Harmening and Chief
Financial Officer Kofi Bruce will begin today at 7 a.m. CT. A
replay of the presentation and related materials will be made
available on the General Mills’ Investor Relations website at
www.generalmills.com/investors.
###
About General Mills
General Mills makes food the world loves. The company is guided
by its Accelerate strategy to drive shareholder value by boldly
building its brands, relentlessly innovating, unleashing its scale
and standing for good. Its portfolio of beloved brands includes
household names such as Cheerios, Nature Valley, Blue Buffalo,
Häagen-Dazs, Old El Paso, Pillsbury, Betty Crocker, Yoplait,
Totino’s, Annie’s, Wanchai Ferry, Yoki and more. Headquartered in
Minneapolis, Minnesota, USA, General Mills generated fiscal 2023
net sales of U.S. $20.1 billion. In addition, the company’s share
of non-consolidated joint venture net sales totaled U.S. $1.0
billion.
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 under the
caption “Reaffirming Full-year Fiscal 2024 Outlook”, 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 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 2024 outlook for organic net sales growth,
constant-currency adjusted operating profit, adjusted diluted EPS,
and free cash flow 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 and project-related costs,
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 2024. The unavailable
information could have a significant impact on our fiscal 2024 GAAP
financial results.
For fiscal 2024, 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 2024 will have no material impact to net sales growth and
restructuring charges to total approximately $45 million to $50
million.
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(Investors) Jeff Siemon: +1-763-764-2301 (Media) Chelcy Walker:
+1-763-764-6364
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