Vending

Kellogg boosts Q1 2023 sales, earnings slide

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May 5, 2023

Kellogg Co. lifted its Q1 2023 sales boosted by snacks and noodles and a continued rebound in North American cereal, according to a press release. Highlights include:

• Net sales increased by 10% from $3.67 billion in Q1 2022 to $4.05 billion for the quarter ending April 1, 2023, reflecting positive price/mix, and led by sustained momentum in snacks and noodles, as well as a continued rebound in North America cereal. These factors more than offset the impacts of price elasticity, halted shipments into Russia and adverse currency translation.
• Net income fell from $424 million to $302 million in the comparative quarters.
• Diluted EPS fell 30.1% from $1.23 to 86 cents.
• Adjusted diluted EPS remained flat at $1.10 while currency neutral adjusted EPS rose 2.7% to $1.13.
• Kellogg North America reported net sales in the first quarter increased by 13% year on year, driven by inflation-driven price realization and a mix shift toward snacks, and featuring sustained momentum in snacks and continued recovery in North America cereal.
• Kellogg Europe reported net sales increased 3% year on year in the first quarter, as price/mix growth and momentum in snacks more than offset the impacts of adverse foreign currency translation and the suspension of shipments into Russia.
• Kellogg Latin America reported net sales increased 14% year on year, due to price/mix growth and momentum in snacks and cereal, as well as favorable foreign currency translation.
• Kellogg Asia Pacific, Middle East and Africa net sales increased by 7% year on year, as price/mix growth and momentum in snacks, noodles and cereal more than offset the impact of significantly adverse foreign currency translation.

Shares traded today at $70.82 against a 52-week range of $63.74 to $77.17

"We're very pleased to get off to such a strong start to the year," Steve Cahillane, chairman and CEO, said in the press release. "We continue to grow net sales organically above our long-term targets, and this growth spans across our regions and our category groups. We also continue to make progress toward recovering our profit margins."

The company raised its organic-basis net sales growth guidance for 2023 to a tightened range of 6% to 7%, from its prior guidance of 5 to 7%. The company also raised its guidance for adjusted-basis operating profit growth to 8% to 10% on a currency-neutral basis from its prior guidance of 7% to 9%.