Benzinga | Sep 8, 2021 07:37AM EDT

General Mills Updates FY22 Guidance

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.