General Mills is exploring the potential sale of its yogurt business in North America, which includes popular brands like Yoplait, Liberté, and Ratio Food. The company has enlisted investment banking group JPMorgan Chase to find potential buyers for this segment. Sources indicate that General Mills is looking to value the portfolio at nearly ten times its annual EBITDA of around $250m.
In 2021, General Mills sold 51% of its controlling interest in its European yogurt operations to Sodiaal, a French dairy cooperative. As part of this deal, General Mills acquired Yoplait in Canada and secured a reduced royalty rate for using the Yoplait and Liberté brands in North America.
Sodiaal, the other shareholder in these entities, supplies milk to the Yoplait brand. General Mills reported a 1% increase in total net sales to $15.1bn in the nine months ended 25 February, with operating profits also rising by the same percentage to $2.6bn. In the third quarter, total net sales dipped by 1% to $5.1bn, with operating profits increasing by 25% to $911m.
While net sales in the North American retail unit remained flat at $9.6m, the foodservice segment in the region saw a 3% growth. Operating profits for the North American retail market were steady in the nine-month period but increased by 9% in foodservice. In the third quarter, operating profits dropped by 4% in retail and 1% in foodservice.
General Mills has been actively reshaping its yogurt business, focusing on strategic partnerships and divestitures to enhance its overall portfolio.
