General Mills sells U.S. yogurt business to Lactalis

Published 30/06/2025, 15:22
General Mills sells U.S. yogurt business to Lactalis

MINNEAPOLIS - General Mills, Inc. (NYSE:GIS), currently trading near its 52-week low at $51.57, has completed the sale of its U.S. Yogurt business to Lactalis, according to a company press release issued Monday.

The transaction includes several yogurt brands such as Yoplait, Go-Gurt, Oui, Mountain High, and :ratio, along with manufacturing facilities located in Murfreesboro, Tennessee and Reed City, Michigan.

The divested business contributed approximately $1.2 billion to General Mills’ fiscal 2025 net sales. The company plans to use the proceeds from the sale for share repurchases and debt reduction.

General Mills reported total fiscal 2025 net sales of $19 billion, with an additional $1 billion from non-consolidated joint venture net sales.

The company did not disclose the financial terms of the transaction with Lactalis.

In other recent news, General Mills has released its fourth-quarter earnings report, which has prompted several investment firms to adjust their price targets for the company. Stifel reported that General Mills’ earnings per share stood at $0.74, a 27% decline on a constant currency basis, yet slightly above their estimate due to favorable inventory timing. The company also provided guidance for fiscal year 2026, projecting an earnings per share decline between 15% and 10%. This outlook has led Stifel to lower its price target from $65 to $56, while maintaining a Buy rating.

UBS also revised its price target down to $49 from $52, citing a weaker-than-expected fiscal 2026 guidance and concerns about the company’s ability to improve its top-line performance. Similarly, Bernstein reduced its target to $55, highlighting challenges such as changing consumer eating behaviors and potential regulatory hurdles. Evercore ISI adjusted its target to $54, reflecting an updated valuation based on projected flat sales performance for fiscal year 2026.

Mizuho, however, maintained its price target at $60, noting some positive market share improvements but expressing caution about the company’s growth prospects amid ongoing consumer challenges. These developments indicate a mixed outlook for General Mills, with analysts acknowledging both the company’s strategic reinvestments and the competitive pressures it faces.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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