(RTTNews) - Packaged food company General Mills (GIS) said that in response to revised second-half growth expectations driven largely by recent sales performance on U.S. yogurt and soup, the company is reducing its sales and earnings outlook for the fiscal year ending May 2017.
General Mills said its fiscal 2017 organic net sales are now expected to decline approximately 4 percent. This represents the low end of the previous range of a 3 to 4 percent decline, due primarily to a widening gap between the company's level of promotional activity and that of competitors in the U.S. yogurt and soup categories.
The company now forecasts fiscal 2017 adjusted earnings per share to increase 5 percent to 7 percent in constant currency, and adjusted operating profit margin of at least 18 percent, which represents an increase of at least 120 basis points over fiscal 2016 levels.
Previously, General Mills was targeting adjusted earnings per share growth of 6 percent to 8 percent in constant currency and 150 basis points of improvement in adjusted operating profit margin.
General Mills said it is committed to pursuing its Consumer First strategy and leveraging its five global platforms - cereal, snacks, yogurt, convenient meals, and super-premium ice cream - along with its new global organizational structure to achieve its goal of creating market-leading growth to deliver top-tier shareholder returns.