Kellogg Company has reported that Pringles sales in Europe were 'pulled down by merchandising lost' in the aftermath of since-resolved price negotiations with retailers, in its recently published Kellogg Company Reports Second Quarter 2017 Results and Reaffirms 2017 Guidance, for the period ending 2 July 2017.
Kellogg Europe said that a decrease in reported and currency-neutral comparable net sales was 'mainly because of lost merchandising activity related to since-resolved customer negotiations related to pricing actions on Pringles and that it is 'masking continued sequential improvement in our U.K. cereal business and growth in emerging markets like Russia'.
It's net sales fell by 2.5% to $3,187 million for the second quarter of the year.
The company also attributes this expected result to 'soft consumptions trends' in the US.
However, quarterly operating profit saw marginal growth, increasing by 0.7%, and reported earnings per share increased by 1.3% compared to the same period last year.
The cereal giant said says that second-quarter net sales and operating profit performance improved from the first quarter, as anticipated, while productivity initiatives have continued to improve the company's profit margins.
The company continues to forecast a decline in currency-neutral comparable net sales of about 3% for the full year 2017, with an increase in comparable operating profit of between 7% and 9%.
“We are encouraged that we remain on track to deliver on our 2017 currency-neutral comparable profit and earnings outlook, even amidst challenging industry conditions," said John Bryant, Kellogg Company’s chairman and chief executive officer.
“However, we are equally pleased that we are taking the right actions to return our business to top-line growth, which is a priority for us.”
© 2017 - Checkout Magazine by Donna Ahern