General Mills Posts Sales Growth, But North America Underperforms
September 18 2018 - 08:48AM
Dow Jones News
By Allison Prang
Sales rose in General Mills Inc.'s latest quarter despite a
decline in its North American business, which brings in most of the
food company's revenue.
General Mills said Tuesday that net sales rose 8.6% to $4.09
billion. Sales climbed in Europe and Australia and in Asia and
Latin America as well as in the convenience stores and food service
division. Analysts polled by FactSet were expecting sales of $4.12
billion.
In North America, net sales were $2.39 billion, down 2.1% and
below analysts' estimates.
The company said its U.S. snacks business saw a 4% drop in net
sales while U.S. cereal net sales rose 1%. Net sales for U.S.
yogurt fell 2% along with U.S. meals and baking.
General Mills said its pet-food division, which is still a new
area for the company, reported sales of $343.4 million, up 14% on a
pro forma basis. General Mills purchased Blue Buffalo earlier this
year for $8 billion, which drove up its interest expense costs in
its previous fiscal year.
While General Mills reported top-line growth, profit declined as
the company's net interest climbed by more than 80% from the
comparable quarter a year ago.
The company reported earnings of $392.3 million, down 3.1% from
the comparable quarter a year ago. It posted earnings per share of
65 cents, down from 69 cents. On an adjusted basis, the company
reported earnings of 71 cents a share, above analysts' estimates of
64 cents.
Shares, down 19% year to date, fell 3.7% in premarket
trading.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
September 18, 2018 08:33 ET (12:33 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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