General Mills Posts Sales Growth, But North America Underperforms -- Updates
September 18 2018 - 9:18AM
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.
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.
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