Following ten consecutive quarterly declines, Kellogg has posted an increase in sales of 0.6% in the three months to 30 September 2017.
Net sales in the quarter were $3.27 billion, which was up partly thanks to sales in the Kellogg frozen food unit and the company’s Canadian business.
Net income was up by 1.7% to $297 million, from $292 million from the same period of 2016.
The company’s US snacks business, which includes brands such as Pringles, saw sales fall by 4.5%. This was partly a result of eliminating smaller, less productive stock-keeping units.
Net sales in Europe were down, but an improvement on recent quarters, with Pringles returning to growth and the stabilisation of cereal consumption in the UK.
Kellogg CEO Steve Cahillane said: “The third-quarter results and 2017 financial outlook are a testament to the strategy in place, as is the acquisition of Rxbar, which will serve as an additional platform for growth.”
He added: “We are encouraged that we remain on track to deliver on our 2017 financial guidance, even amidst challenging industry conditions. Going forward, strong productivity programmes give us good visibility into cost savings, and we will continue to transform and drive this business back to top-line growth.”
Kellogg chairman John Bryant said: “Our third-quarter played out as expected. Operating profit margin expansion got an added boost from the transition out of Direct-Store Delivery, and we posted another quarter of sequential improvement in our net sales performance.
“There was some timing benefit that comes out of the fourth quarter, but these results put us solidly on track to deliver on our full-year 2017 financial guidance, just as we welcome Steve Cahillane as the eleventh chief executive officer in our company’s history.”
Earlier this month Kellogg acquired Chicago Bar Company, maker of Rxbar, in a deal worth $600 million.
For 2017 as a whole, the company forecasts a decline in net sales of around 3%.
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