Kellogg Company has raised its full-year outlook after posting a 9% increase in reported net revenue for its third quarter, driven by demand for its snacks, noodles and cereal.
The company now expects organic net sales growth of over 10% for the full year, up from its prior forecast of a 7% to 8% increase.
Kellogg says that overall average selling prices rose 15.7% in the quarter. However, volumes fell by 2.3%.
The company posted Q3 reported net sales of $3.95 billion, while reported operating profit fell by nearly 18% in the quarter to $368 million.
In North America, the business reported 14% growth in net sales due in part to an acceleration in cereal, while sales volumes fell in overseas markets.
Meanwhile, Kellogg Asia Pacific, Middle East and Africa posted an increase in net sales of 12% for Q3.
Kellogg Company’s chairman and CEO, Steve Cahillane, said: “We’re pleased to report another quarter of better-than-expected financial performance and an increase to our outlook for the year”.
Cahillane added: “This required navigating effectively through global supply challenges and working to offset cost pressures with productivity and revenue growth management, all while sustaining momentum in snacks and emerging markets, and continuing to recover inventory and share in North America cereal”.
© FoodBev Media Ltd 2022
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