Kellogg Company has posted Q2 net sales growth of 8.7% to $3.86 billion, driven by positive price/mix and momentum in snacks, noodles and cereal.
In the second quarter, the company’s reported operating profit decreased by 17.7%, as “the strong net sales growth was more than offset by unfavourable mark-to-market impacts and adverse currency translation”.
In North America, Kellogg reported a net sales increase of 12%. Meanwhile, in Europe the company’s reported net sales declined 3% in Q2, as adverse foreign currency translation more than offset price/mix and sales momentum in snacks and cereal.
Kellogg Latin America’s reported net sales increased 8%, while Kellogg Asia Pacific, Middle East and Africa saw its Q2 reported net sales grow 11%.
Steve Cahillane, Kellogg’s chairman and CEO, said: “Our second-quarter performance again demonstrated the strength of our portfolio and the skill and grit of our employees, who managed through an unusually challenging supply and cost environment and delivered strong financial results. We sustained notably strong growth momentum in snacks and emerging markets, while accelerating the recovery of supply and category share in our North America cereal business, all while leveraging productivity initiatives and revenue growth management to mitigate the impact of decades-high input cost inflation.”
Kellogg has raised its full-year guidance for organic net sales growth to 7-8%.
Cahillane added: “Our improved full-year outlook incorporates not only our better-than-expected results of the first half, but also confidence in our ability to continue to manage through the current supply and cost challenges while sustaining momentum in our world-class brands. And even as we prepare for one of our biggest portfolio transformations yet, the proposed separation into three independent companies, we remain laser-focused on delivering on this improved outlook.”
© FoodBev Media Ltd 2022
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