Kellogg Company has recorded a 5.1% net sales increase in the first quarter, following strong performance by its cereals range and Pringles brand, particularly in Europe and the AMEA region.
The owner of Crunchy Nut and Frosted Flakes posted net sales of $3.58 billion for the quarter, compared to $3.41 billion the same time last year; witnessing strong growth across all regions and global categories.
Kellogg says elevated demand for packaged food consumed at home more than offset softness in its away-from-home channels and on-the-go occasions. Sales through retail channels remained strong, despite a strong pandemic-related surge last year.
In the three months, operating profit grew by 2.7% to $472 million. According to Kellogg, its first-quarter results were led by many of its largest brands and particularly strong growth in its ecommerce platform.
Kellogg’s Europe division reported a net sales increase of 10%, with sustained strong momentum for its Pringles brand across the region and continued elevation of cereal sales.
In its Asia Pacific, Middle East and Africa (“AMEA”) unit, Kellogg saw net sales rise by 14%, driven by growth across cereal, snacks and noodles.
Meanwhile, in North America and Latin America, Kellogg’s net sales increased 2% and 4% respectively. Snack growth accelerated particularly in Brazil where local production and a new distributor benefited its Pringles brand.
“The quarter featured continued momentum in major brands and categories, accelerated growth in emerging markets, and effective management of cost pressures through productivity and revenue growth management,” said Kellogg Company chairman and CEO, Steve Cahillane.
“This strong start to the year enables us to raise our full-year financial outlook, and underscores confidence in our ability to sustain balanced financial delivery.”
The company expects to achieve flat year-on-year growth, up from its previous guidance of a decline of approximately 1%.
© FoodBev Media Ltd 2020
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