Kellogg Co.
K -6.12%
boosted its outlook after reporting 9% growth to its top line in the third quarter, the latest food company showing sales holding up as they raise prices.
The maker of Rice Krispies cereal and Cheez-It crackers said higher prices and a positive shift in the mix of products it sold helped its North America cereal business rebound from flagging sales earlier this year and continuing bottlenecks in the supply chain.
The company now expects organic sales growth for 2022 of about 10%, up from its prior forecast of 7% to 8%, while per-share earnings on an adjusted basis are now projected to grow by 3% rather than 2%, as previously expected.
Global sales rose by 9% to $3.95 billion for the quarter ended Oct. 1, topping analyst expectations of $3.78 billion, according to FactSet.
Stripping out the impact of currency translation, Kellogg said sales were up 13% in the period. Sales volumes, while up in North America, were down 2.3% globally.
Kellogg and other food producers have been raising prices to offset more expensive food commodities and supply-chain challenges that have strained inventory and dented margins. The increases have turned some inflation-conscious customers away, pressuring sales volumes, but pushed companies’ top lines higher.
Earnings ticked up slightly to $310 million, or 90 cents a share, from $307 million, or 89 cents a share, in the same period a year ago. Adjusted earnings, which strip out one-time items and account for currency fluctuations, were $1.06 a share. Analysts polled by FactSet had been expecting 98 cents a share.
Shares edged 1.4% lower to $74.75 in premarket trading. They are up more than 17% this year.
Kellogg’s results are in line with other food makers that reported earnings earlier this season.
Conagra Brands Inc.,
the producer of Duncan Hines cake mixes and Slim Jim meat snacks, last month reported a 10% jump in quarterly sales despite selling 4.6% less food.
Kraft Heinz Co.
said last week that its third-quarter top line was up 2.9%, zipping past analyst expectations, despite a drop in volume from the same quarter last year.
Kellogg is in the process of spinning off its portfolio of cereal brands, and later its plant-based meat brands, from its faster-growing snacks business, hoping the split will help its cereal brands reclaim territory on supermarket shelves.
Write to Dean Seal at dean.seal@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Kellogg Co.
K -6.12%
boosted its outlook after reporting 9% growth to its top line in the third quarter, the latest food company showing sales holding up as they raise prices.
The maker of Rice Krispies cereal and Cheez-It crackers said higher prices and a positive shift in the mix of products it sold helped its North America cereal business rebound from flagging sales earlier this year and continuing bottlenecks in the supply chain.
The company now expects organic sales growth for 2022 of about 10%, up from its prior forecast of 7% to 8%, while per-share earnings on an adjusted basis are now projected to grow by 3% rather than 2%, as previously expected.
Global sales rose by 9% to $3.95 billion for the quarter ended Oct. 1, topping analyst expectations of $3.78 billion, according to FactSet.
Stripping out the impact of currency translation, Kellogg said sales were up 13% in the period. Sales volumes, while up in North America, were down 2.3% globally.
Kellogg and other food producers have been raising prices to offset more expensive food commodities and supply-chain challenges that have strained inventory and dented margins. The increases have turned some inflation-conscious customers away, pressuring sales volumes, but pushed companies’ top lines higher.
Earnings ticked up slightly to $310 million, or 90 cents a share, from $307 million, or 89 cents a share, in the same period a year ago. Adjusted earnings, which strip out one-time items and account for currency fluctuations, were $1.06 a share. Analysts polled by FactSet had been expecting 98 cents a share.
Shares edged 1.4% lower to $74.75 in premarket trading. They are up more than 17% this year.
Kellogg’s results are in line with other food makers that reported earnings earlier this season.
Conagra Brands Inc.,
the producer of Duncan Hines cake mixes and Slim Jim meat snacks, last month reported a 10% jump in quarterly sales despite selling 4.6% less food.
Kraft Heinz Co.
said last week that its third-quarter top line was up 2.9%, zipping past analyst expectations, despite a drop in volume from the same quarter last year.
Kellogg is in the process of spinning off its portfolio of cereal brands, and later its plant-based meat brands, from its faster-growing snacks business, hoping the split will help its cereal brands reclaim territory on supermarket shelves.
Write to Dean Seal at dean.seal@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8