General Mills: Provides Business Review and Updates Outlook

Minneapolis / MN. (gm) In conjunction with its participation at the 2021 Barclays Global Consumer Staples Conference, General Mills Inc. provided a review of its North America Retail and Pet business segments, highlighted its enterprise priorities, and updated its full-year financial outlook for fiscal 2022. The company reiterated the three key priorities that will be critical to its success this year:

1. Continuing to compete effectively by executing its Accelerate strategy to deliver competitive performance in an evolving operating environment.
2. Successfully navigating the dynamic cost environment, leveraging the company’s Holistic Margin Management productivity program, Strategic Revenue Management pricing actions, and other efficiency efforts to address input cost inflation and other cost headwinds.
3. Executing its portfolio and organization reshaping actions without disrupting the base business. The company completed the acquisition of Tyson Foods’ pet treats portfolio on July 6, 2021, and expects to complete the divestiture of its European Yoplait operations by the end of the calendar year.

General Mills updated its full-year fiscal 2022 targets, taking into consideration the evolving operating environment as well as the recent completion of its pet treats acquisition:

• Organic net sales are now expected to be toward the higher end of the prior range of down 1 to 3 percent, primarily reflecting stronger-than-expected sales performance in the first quarter.
• Constant-currency adjusted operating profit and constant-currency adjusted diluted EPS are each now expected to be toward the higher end of the prior ranges of down 2 to 4 percent and flat to down 2 percent, respectively, largely due to the impact of the recent pet treats acquisition, which is estimated to add approximately 2 cents to fiscal 2022 adjusted diluted EPS. The company is addressing the increasing cost environment with incremental SRM and cost efficiency actions.
• Free cash flow conversion is still expected to be approximately 95 percent of adjusted after-tax earnings.
• The above targets exclude the impact of the European Yoplait divestiture, which is scheduled to close by the end of the calendar year.

As part of the company’s attendance at the 2021 Barclays Global Consumer Staples Conference, Jon Nudi, Group President – North America Retail, Bethany Quam, Group President – Pet segment, and Jeff Siemon, Vice President – Investor Relations, participated in a webcasted presentation and fireside chat.