General Mills Reaffirms FY20 Outlook; Says Unable To Quantify Coronavirus Impact

(RTTNews) - General Mills, Inc. (GIS) on Tuesday reaffirmed its key financial targets for the fiscal year ending May 31, 2020. The outlook was announced by the company in conjunction with a presentation at the Consumer Analyst Group of New York or CAGNY investor conference.

For fiscal 2020, General Mills reiterated its outlook for constant-currency adjusted earnings per share to increase 3 percent to 5 percent, and organic net sales to increase 1 percent to 2 percent.

On average, analysts polled by Thomson Reuters expect the company to earnings of $3.38 per share for the year on revenues of $17.23 billion. Analysts' estimates typically exclude special items.

The company expects free cash flow conversion for the full year of at least 105 percent of adjusted after-tax earnings.

General Mills also said it was not able to currently quantify the financial impact of the coronavirus outbreak on its fiscal 2020 financial results, due to evolving nature of the situation.

The company noted that nearly half of its company-owned Hagen-Dazs shops in Greater China have been temporarily closed, while the remaining shops are operating under severely restricted hours.

The Greater China region represents about 4 percent of General Mills net sales, of which approximately 40 percent are net sales from Hagen-Dazs shops and other foodservice outlets.