The Kellogg Company has recorded a net sales increase of 2.4% in its first quarter, led by “snacks, international momentum and positive price/mix”.
The owner of Crunchy Nut, Coco Pops and PopTarts reported organic net sales growth of 4.2% to $3.7 billion (excluding the impact of currency), mirroring the same increase at the same time last year.
In North America, the company’s Q1 net sales declined by less than 1%, relating to supply disruptions, low cereal inventory stemming from last year’s fire at one of its plants, and labour strikes across its Michigan, Nebraska, Pennsylvania and Tennessee facilities.
The cereal giant’s Europe and Latin America divisions reported an organic net sales increase of 8% and 6% respectively, reflecting growth across sub-regions led by snacks.
Kellogg’s Asia Pacific, Middle East and Africa (AMEA) division’s first-quarter organic net sales increased by 17%, driven by growth across snacks, cereal and noodles.
“We are pleased to report another quarter of solid results, getting off to a better start to the year than we had expected. The strength of our portfolio is evident, as we more than offset the sales and cost impact of supply recovery in North America cereal with sustained momentum in snacks growth around the world,” said Kellogg’s chairman and CEO, Steve Cahillane.
He continued: “Our ability to execute with agility was also on display, as we navigated through a challenging supply environment and delivered productivity and price realisation amidst decades-high cost inflation. Our strong start to the year, coupled with good sales momentum, allows us to affirm earnings guidance even as the outlook has worsened for cost inflation and incremental business disruptions, including impacts related to the war in Ukraine. This is a testament to our strategy, our portfolio, and our people.”
The company has raised its full-year guidance for organic-basis net sales growth, reflecting momentum and revenue growth management actions.
© FoodBev Media Ltd 2022
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