Pillsbury Maker General Mills Adjusts Fiscal 2025 Earnings Outlook After Canadian Yogurt Divestiture: Details

Pillsbury maker General Mills, Inc. GIS has finalized the sale of its Canadian yogurt division to Sodiaal.

The transaction includes the Canadian operations of well-known yogurt brands such as Yoplait and Liberté, as well as a production facility in Saint-Hyacinthe, Québec.

In September last year, the company signed definitive agreements to sell its North American yogurt business to French dairy companies, Lactalis and Sodiaal, for a total of $2.1 billion.

General Mills has stated that it expects the sale of its U.S. yogurt business to Lactalis to be finalized in 2025, subject to regulatory approval and other necessary conditions.

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After the completion of the Canadian yogurt sale and the North American Whitebridge Pet Brands acquisition, General Mills has updated its fiscal 2025 earnings forecast.

The company now anticipates a decline in adjusted diluted earnings per share (EPS) between 4% and 2% in constant currency, a change from the earlier estimate of a 3% to 1% drop.

This revision accounts for the increased interest expenses resulting from the financing of the Whitebridge 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 outlook for constant-currency adjusted operating profit growth and free cash flow conversion.

Price Action: GIS shares closed higher by 2.09% at $61.64 on Monday.

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