General Mills misses sales estimates as snacks demand fall
General Mills has issued a national recall for a variety of unbleached flour over the potential presence of salmonella.
General Mills Inc on Wednesday reported quarterly sales below Wall Street estimates, hurt by declines in its U.S. snacks business.
The company has been struggling to drive sales of its sugary snacks and yogurt as consumers shift to healthier breakfast and snacking options.
Organic net sales, excluding revenue from acquisitions, fell 2 percent in the fourth quarter in its North America retail segment, its biggest by sales.
Net earnings attributable to the company rose to $570.2 million, or 94 cents per share, in the fourth quarter ended May 26, from $354.4 million, or 59 cents per share, a year earlier.
Overall net sales rose 7 percent to $4.16 billion, but missed the average analyst estimate of $4.24 billion.
The boost came from a 38 percent surge in sales from pet food company Blue Buffalo, which it bought last year.
For the quarter, the company earned 83 cents per share, excluding one-time items, above the estimate of 77 cents.
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Shares of the Minneapolis, Minnesota-based company fell more than 3 percent before the bell.
(Reporting by Nivedita Balu in Bengaluru; Editing by Shinjini Ganguli)