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Kellogg Forecasts Annual Sales Of Up To $13.6bn For Snacks Business Ahead Of Split

By Donna Ahern
Kellogg Forecasts Annual Sales Of Up To $13.6bn For Snacks Business Ahead Of Split

Packaged food maker Kellogg said recently that its snacking business Kellanova is expected to report full-year sales between $13.4 billion and $13.6 billion after Kellogg separates into two units at the end of the year.

Kellanova — which will house the Pringles, Cheez-It and Pop-Tarts snack brands among others — is also expected to report an annual adjusted profit between $3.55 and $3.65 per share, Kellogg noted.

Kellogg last year unveiled plans to split the company to sharpen its focus on the snack business.

The cereal business, WK Kellogg, which will be home to brands including Kellogg's and Froot Loops, is expected to post full-year net sales of $2.7 billion.

Earlier this month, Kellogg forecast a smaller drop in annual profit than previously expected following multiple price hikes for its breakfast snacks and cereals.



In May, Kellogg forecased a smaller drop in annual profit and raised the lower end of its sales outlook on the back of consistent price hikes and resilient demand for its cereals and snacks.

Shares of the Michigan-based company rose marginally in premarket trading after the Corn Flakes maker beat market expectations for first-quarter revenue and profit.

Kellogg, like other global packaged food makers, has been using its brand power to steadily raise product prices over the past year to counter spiralling costs of ingredients amid a cost-of-living crisis.

Read More: Kellogg Lifts Annual Forecasts On Price Hikes, Resilient Demand

News by Reuters, edited by Donna Ahern, Checkout. For more A-brand news, click here. Click subscribe to sign up for the Checkout print edition.

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