GIS General Mills Inc

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.

Total organic net sales, which take out impacts from things like changes in foreign exchange rates, rose 0.5%, said Kelsey Roemhildt, spokeswoman for the company.

Total organic net sales, which take out impacts from things like changes in foreign-exchange rates, rose 0.5%, said Kelsey Roemhildt, spokeswoman for the company.

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 3.4% in premarket trading.

Write to Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

September 18, 2018 09:03 ET (13:03 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.