Kellogg has seen its third-quarter revenue grow by 6.8%, as it continues to benefit from a pair of acquisitions completed in the past year.
The Battle Creek-based business bought snack brand Rxbar last October, followed by the consolidation of Nigerian distributor Multipro in May.
In the nine months to the end of September, Kellogg’s notched sales of $10.23 billion – a 5.8% improvement on the opening nine months of last year – while third-quarter net sales grew 6.8% to $3.47 billion. Operating profit was $396 million for the quarter – more than 18% higher.
It is the company’s strongest year-on-year sales growth for more than five years and marks a continuous improvement since it returned to growth in the third quarter of 2017, following 16 successive quarters of year-on-year decline.
Kellogg’s chief executive officer Steven A Cahillane said: “We continue to make tangible progress under our ‘Deploy For Growth’ strategy, highlighted by changes we have made in our portfolio and investments we are making in winning occasions, building world-class brands, and pursuing improved service and in-store execution.
“In the third quarter, we boosted investment behind our brands, capabilities, and new pack formats. This investment, along with our expansion and acceleration in international markets, has returned us to top-line growth this year. Despite their near-term impact on profit, we’ll continue making these investments in the fourth quarter because we know they are putting us on a path for sustainable growth over time.”
In August, Kellogg extended its portable smoothie bowl brand, Joyböl, to the UK. The move forms part of a continued focus on healthier categories, helping it to withstand pressure on packaged food.
As well as the portfolio changes it has made, Kellogg cited “improving consumption trends” in key markets and categories for the positive performance
It has prompted the company to upgrade its full-year earnings guidance towards the higher end of its previously stated range – or approximately 5% sales growth on a currency-neutral basis.
© FoodBev Media Ltd 2020