Kellogg Co raised annual forecasts and beat first-quarter sales and profit estimates on Thursday, helped by a sustained snacking boom that began during the pandemic but continues even as the U.S. economy reopens.
Fresh restrictions in several parts of the world, including France, the United Kingdom and parts of Asia early this year has also fueled demand for cereals, snacks and frozen foods as consumers staying indoors seek comfort in food.
Kellogg, which also makes Pringles, Cheez-Its and Pop-Tarts, projected full-year organic net sales to be about flat, compared to its previous estimate of a decline of about 1%.
Net Sales Increase
Net sales rose to $3.58 billion in the quarter ended 3 April from $3.41 billion a year earlier. Analysts were expecting sales of $3.38 billion, according to IBES Refinitiv.
Net income attributable to the company climbed to $368 million, or $ 1.07 per share, from $347 million, or $1.01 per share, a year earlier.
Excluding items, Kellogg earned $1.11 per share, beating analysts' average estimate of 96 cents per share.
Shares of the company were up 3% in premarket trading.