The Kellogg Company’s first-quarter results have beaten expectations, as the company registered an increase in net sales leading to a reported operating profit rise of 81%.
Reported operating profit rose to $510 million from the $280 million figure recorded in the same period last year, which the company attributed to productivity savings and higher net sales and significantly lower restructuring charges thanks to the Project K restructuring program.
Kellogg’s net sales rose 4.7% to $3.4 billion, which owed to favourable currency translations, increased sales from the acquisition of RXBAR maker Chicago Bar Company in October 2017, and improved business delivery.
Kellogg’s North America, European, Latin American and Asian divisions all registered an increase in net sales, with the Pringles brand performing particularly strongly, registering a double-digit sales increase in Europe and volume growth in Asia and Latin America.
Steve Cahillane, Kellogg Company’s chairman and chief executive officer said: “We delivered a strong first quarter. Net sales, operating profit, and earnings per share all achieved year-on-year growth, keeping us well on pace for our full-year targets.
“We made visible progress on key elements of our growth plan, achieving accelerated growth in frozen foods and Pringles, stabilizing cereal in developed international cereal markets, and
realising underlying improvement in US Snacks following our transition out of Direct Store Delivery distribution.
“We also accelerated our growth in emerging markets, and we increased our investment stakes in our fast-growing West Africa ventures.
“We still have work to do, and our investment in capabilities and growth will continue, but we are firmly on the right track.”
© FoodBev Media Ltd 2020
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