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Feb 16, 2016

General Mills reaffirms guidance for fiscal 2016

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MINNEAPOLIS, Minnesota—In conjunction with a presentation today at the Consumer Analyst Group of New York (CAGNY) investor conference, General Mills (NYSE: GIS) reaffirmed its key financial targets for the fiscal year ending May 29, 2016, which reflect the impact of the Green Giant divestiture. Net sales in constant currency are expected to decline at a low single-digit rate from the 2015 levels that included a 53rd week. Total segment operating profit in constant currency is expected to essentially match last year. Fiscal 2016 adjusted diluted earnings per share (which excludes certain items affecting comparability) are expected to grow at a low-single-digit rate in constant currency from the base of $2.86 earned in fiscal 2015 (please see the table below for reconciliation of this non-GAAP measure to the relevant GAAP measure). 

A webcast of today’s General Mills presentation at the CAGNY conference can be accessed here. The webcast will be archived on General Mills’ website through March 4, 2016. 

Diluted EPS excluding certain items affecting comparability follow:

 

Fiscal Year

 

Per Share Data

 

2015 

 

 

Diluted earnings per share, as reported

$

 1.97 

 

 

  Mark-to-market effects

 

 0.09 

 

 

  Divestiture (gain), net

 

 -   

 

 

  Tax item

 

 0.13 

 

 

  Acquisition integration costs

 

 0.02 

 

 

  Venezuela currency devaluation

 

 0.01 

 

 

  Restructuring costs

 

 0.35 

 

 

  Project-related costs

 

 0.01 

 

 

  Intangible asset impairment

 

 0.28 

 

 

Diluted earnings per share, excluding

   certain items affecting comparability

$

 2.86 

 


Contacts
(Analysts) Jeff Siemon (763) 764-2301
(Media) Kirstie Foster (763) 764-6364


This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management’s current expectations and assumptions. These forward-looking statements 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: 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 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 and energy; disruptions or inefficiencies in the supply chain; effectiveness of restructuring and cost savings 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 statements to reflect any future events or circumstances.