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General Mills has finalised the sale of its Canadian yogurt operations to French dairy cooperative Sodiaal, a move that marks a significant shift in its North American portfolio.
News of the sale was first announced in September 2024, where the company signed a definitive agreements to sell its North American yogurt operations to Lactalis and Sodiaal, in a move valued at approximately $2.1 billion.
The divestiture includes well-known brands such as Yoplait and Liberté, along with a manufacturing facility located in Saint-Hyacinthe, Québec.
This transaction is part of General Mills' broader strategy to reshape its business in response to evolving market conditions and consumer preferences. The company also anticipates the completion of the sale of its US yogurt business to Lactalis later this year, pending regulatory approvals.
In light of these changes, General Mills has revised its fiscal 2025 outlook for adjusted diluted earnings per share (EPS). The company now expects a decline in EPS between 4% and 2% in constant currency, a shift from the previous forecast of a 3% to 1% decrease. This adjustment reflects increased interest expenses associated with debt incurred from the recent acquisition of Whitebridge Pet Brands.
Despite these adjustments, General Mills maintains its outlook for organic net sales growth and reports that the recent transactions will not materially impact its expectations for constant-currency adjusted operating profit growth or free cash flow conversion for the fiscal year.
The strategic divestitures align with General Mills' ongoing efforts to streamline operations and focus on core product lines, particularly as the food and beverage industry increasingly emphasizes sustainability and innovation.
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