Kellogg Company: Reports 2022 Second Quarter Results

Battle Creek / MG. (kc) Kellogg Company announced second quarter 2022 results that were stronger than expected and raised its full-year earnings guidance. Highlights:

• Sustained strong net sales growth, led by snacks globally, international momentum in noodles and cereal, and faster-than-expected recovery in North America cereal, bolstered by positive price/mix.
• Mitigated the negative impacts on profit of high cost inflation, economy-wide bottlenecks and shortages, and the residual impact of last year’s fire and strike through productivity and revenue growth management.
• Raised full-year guidance for organic-basis net sales growth, currency-neutral, adjusted operating profit and EPS, as well as cash flow, reflecting its better-than-expected performance in the first half, as well as underlying momentum and revenue growth management actions.
• Readying the Company for its recently announced, proposed separation of its North America Cereal and Plant-based businesses, targeted for completion by the end of 2023.

«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,» said Steve Cahillane, Kellogg Company’s Chairman and Chief Executive Officer. «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.»

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.»