General Mills, Inc. (NYSE:GIS) Q1 2020 Earnings Conference Call Transcript

Sep 18, 2019 • 08:30 am ET

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General Mills, Inc. (NYSE:GIS) Q1 2020 Earnings Conference Call Transcript

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Executive
Donal L. Mulligan

'19. We currently estimate this foreign currency will be immaterial to adjusted operating profit and adjusted diluted EPS. We continue to target free cash flow conversion of at least 95% of adjusted after-tax earnings and we remain on track to achieve our leverage goal of 3.5 times net debt-to-adjusted EBITDA by the end of the fiscal year.

Now, I'll turn it back over to Jeff for some closing comments.

Executive
Jeffrey L. Harmening

Thanks Don, and before we close, let me add a little bit of more color on our Q1 results relative to our expectations. We feel very good about our performance in North America, Retail and in Pet. Where our Q1 organic sales results were modestly ahead of our expectations. Our other three segments, we expected coming into the year that Q1 will be the slowest quarter of growth driven in part by the fact that we were lapping our strongest quarter of growth for each of these segments last year.

Our Q1 results in these segments were a bit below our expectations, largely driven by the shortfall and flour and Convenience & Foodservice and the retail inventory reduction in Brazil. We had expected and continue to expect to see growth ramp up in these segments starting in Q2 driven by the factors I mentioned a moment ago. On the bottom line, our Q1 profit and earnings per share results were ahead of our expectations and based on those Q1 results and our plans for the remainder of the year, I am pleased to say that we remain on track to deliver our full-year fiscal 2020 goals.

With that, let me open up the line for questions. Operator, can you please get us started.