General Mills (GIS) Issues Update on Accelerate Strategy

At the Consumer Analyst Group of New York (CAGNY) 2024 Conference, General Mills, Inc. (NYSE: GIS) discussed its Accelerate strategy and approach to driving long-term sustainable growth and top-tier shareholder returns. The company also reaffirmed its full-year fiscal 2024 financial outlook.

Accelerate Strategy Has Driven Strong Results

General Mills is executing its Accelerate strategy to drive sustainable, profitable growth and top-tier shareholder returns over the long term. Through clear focus on the company’s core markets, global platforms and local gem brands, along with its proven portfolio reshaping capability, General Mills drove financial results that met or exceeded its long-term goals over the past five fiscal years.

“We are confident in our Accelerate strategy and remain focused on driving growth for our brands,” said Jeff Harmening, chairman and CEO, General Mills. “We’ve responded with agility to an evolving consumer environment while investing in the capabilities needed to compete effectively in the years to come.”

Driving Long-term Sustainable Growth

General Mills is focused on driving sustainable growth through the pillars of its Accelerate strategy:

• Boldly Building Brands: General Mills is continuing to invest in brand building to support a portfolio of iconic brands, including nine brands that each generate more than $1 billion in retail sales. The company’s media investment increased by 41 percent between fiscal 2018 and fiscal 2023, and it was up high-single digits through the first half of fiscal 2024.
• Relentlessly Innovating: With a stabilizing supply chain environment, General Mills is increasing its level of new product innovation with exciting launches across Cereal, Snacking, Meals and Pet Food. And with the innovation spectrum also encompassing inorganic growth opportunities, the company’s “always on” approach to portfolio shaping includes both scaled M&A as well as investments in emerging platforms through its Gold Medal Ventures division.
• Unleashing Our Scale: By investing in a scaled digital infrastructure, General Mills has created world-class capabilities that are driving growth and profitability in areas such as E-commerce, data-driven marketing and supply chain digitization.
• Standing for Good: The company is committed to standing for good with a focus on improving food security, protecting people, strengthening communities and regenerating our planet. General Mills has committed to advance regenerative agricultural practices on one million acres of land by 2030, with 500,000 acres already engaged in its programs through fiscal 2023.

Delivering Top-tier Shareholder Returns

General Mills is creating shareholder value through a consistent balance of net sales growth, margin expansion, cash conversion and cash returns to shareholders. The company generated 12 percent compound annual total returns to General Mills shareholders over the past five years, outpacing its food peer median over the same timeframe.

Reaffirming Full-year Fiscal 2024 Outlook

Amid an evolving external environment, the company reaffirmed its full-year fiscal 2024 financial targets:

• Organic net sales are expected to range between down 1 percent and flat.
• Adjusted operating profit and adjusted diluted EPS are expected to increase 4 to 5 percent in constant currency.
• Free cash flow conversion is expected to be at least 95 percent of adjusted after-tax earnings.

A webcast of the company’s CAGNY 2024 presentation featuring Chairman and Chief Executive Officer Jeff Harmening and Chief Financial Officer Kofi Bruce will begin today at 7 a.m. CT. A replay of the presentation and related materials will be made available on the General Mills’ Investor Relations website at www.generalmills.com/investors.

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