General Mills entered the pet food category this year with the acquisition of Blue Buffalo for $8 billion in April. According to General Mills, the newly acquired company will be reported as a new Pet operating segment. As a result, the fiscal 2018 financial results do not include Pet segment results.
“We made significant progress toward competing more effectively this year, with strong innovation, marketing, and in-store execution driving positive organic sales growth in each of our last three quarters. And we moved to reshape our portfolio for future growth with the acquisition of Blue Buffalo, a fast-growing, highly profitable business that is leading the transformation of the U.S. pet food category,” CEO Jeff Harmening.
For fiscal 2019, the company expects organic net sales to be flat to 1% higher. Including the impact of the Blue Buffalo acquisition, net sales are expected to increase 9-10%. Adjusted EPS is expected to range between 0% and negative 3%.