Strong snack business keeps Kellogg Company on track

 

The positive price/mix and the growth momentum of the snack brands in all four sales regions of the world were decisive for the business performance in this period, according to the statement. For example, strong snack sales at Kellogg Europe drove organic growth of 8%. In contrast, unfavourable currency translation and the negative impact of insufficient finished goods inventory in North America related to a fire and a labour strike clouded the bottom line.

Reported operating profit increased 9.5% to USD 517 m in the first quarter. Steve Cahillane, Chairman and CEO Kellogg Company, affirms the guidance for operating profit, earnings per share, and cash flow, as the improved sales outlook offsets incremental pressures from accelerated cost inflation and business disruption, including impacts related to the war in Ukraine. “The strength of our portfolio is evident as we have more than offset the sales and cost impact of the supply recovery in North American cereals with continued growth momentum in snacks around the world,” said Cahillane.