Kellogg Profit Beats On Higher Demand For Snacks, Frozen Foods
Kellogg Co reported quarterly sales and profit above market expectations on Tuesday, benefiting from higher demand for its Pringles and Cheez-It snacks, as well as frozen foods.
To offset declining demand for sugary cereals, the maker of Eggo waffles and Cheez-It, has been spending more on new products and promotions, as well as on packaging products to make them easier for consumers to eat on the go.
The efforts helped the company's organic sales, which excludes acquisitions, divestitures and foreign exchange impact, rise 2.4%.
Fall In Cereal Sales
Organic net sales for snacks in North America grew 5.2%, while that for frozen foods grew 0.6%, offsetting a fall in cereal sales in the quarter.
Net sales dropped 2.8% to $3.37 billion (€3.04 billion) due to divestiture of its Keebler biscuits brand and other assets.
However, it was above the average analyst estimate of $3.35 billion (€3.02 billion), according to IBES data from Refinitiv.
Net income attributable to the company fell to $247 million (€222.7 million), or 72 cents per share, in third quarter ended 28 September, from $380 million (€342.7 million), or $1.09 per share, a year earlier.
Excluding items, it earned $1.05 per share and beat the average analyst estimate of 91 cents.