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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