General Mills, a US-based packaged food maker, is seeking to strengthen its footprint in the emerging markets through a series of overseas acquisitions, as the cereal maker is witnessing a weaker growth in the US.
The Minnesota-headquartered firm is looking at opportunities to expand its simple meals, ice cream, yogurt or snacks businesses in rapidly developing markets, including China, India and Indonesia.
General Mills CEO Ken Powell said that the company will continue to look at tuck-in opportunities around the world.
Powell was quoted by MPRnews as saying, "We think that's going to be an important part of growth. We're very clear on where we see the growth and we'll continue to pursue those opportunities."
In the recent past, General Mills has been registering a 10% growth in year-on-year revenues.
Sales from international markets are likely to exceed $5bn, while the US revenues are seeing growth in the range of 1% to 3%.
The company is currently working to expand its Yoplait brand in China with a new facility, for which it commenced construction in December 2013.
According to Reuters, General Mills is in talks with French dairy cooperative Sodiaal to secure supply for the market.
Meanwhile, the company reaffirmed its earnings guidance for the year ending 25 May 2014, saying that the adjusted diluted EPS could in the range of $2.87 to $2.90; however, as noted earlier the devaluation of the Venezuelan bolivar would likely put results at the low end of this range.
