Vending

Kellogg lifts Q3 2022 results, raises FY guidance, beats analyst expectations

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November 3, 2022

Kellogg Co. raised its sales and earnings for Q3 2022 over the prior year period, raising its full year guidance, according to an earnings report. Highlights include:

• Net sales increased by 9%, from $3.62 billion in Q3 2021 to $3.95 billion in the quarter ending Oct. 1, 2022, as positive price/mix, sustained momentum in snacks, noodles and international cereal as well a rebounding North America cereal business more than offset the impacts of price elasticity, halted shipments into Russia and adverse currency translation.
• On an organic basis, which excludes the impact of currency, the company's net sales increased by 13%.
• Net income rose from $305 million to $312 million in the comparative quarters.
• Basic earnings per share rose from 90 cents to 91 cents while diluted EPS rose from 89 cents to 90 cents.
• Adjusted diluted EPS declined 7.3% from $1.09 to $1.01.
• Kellogg North America's reported net sales in the third quarter increased by 14% year on year, driven by both price/mix and volume growth, and featuring sustained momentum in snacks and continued acceleration in North America cereal as it resumes commercial activity after having had to rebuild inventory following last year's fire and strike.
• Kellogg Europe's reported net sales decreased 11% as adverse foreign currency translation and the impact of suspending shipments into Russia more than offset an increase in price/mix across the business and sustained in-market momentum in snacks.
• Kellogg Latin America's third quarter reported net sales increased 13% as price/mix and in-market momentum in snacks and cereal more than offset the impact of adverse foreign currency translation.
• Kellogg Asia Pacific, Middle East and Africa's net sales increased by 12% as price/mix and net sales momentum in snacks, noodles, cereal and "other" more than offset the impact of adverse foreign currency translation.

Shares traded at $70.94 today against a 52-week range of $59.54-$77.17.

The $3.95 billion in quarterly revenue beat analyst expectations by $170 million while the non-GAAP EPS of $1.01 beat expectations by 3 cents, according to Seeking Alpha.

"We're pleased to report another quarter of better-than-expected financial performance and an increase to our outlook for the year," Steve Cahillane, chairman and CEO, said in the press release. "This required navigating effectively through global supply challenges and working to offset cost pressures with productivity and revenue growth management, all while sustaining momentum in snacks and emerging markets, and continuing to recover inventory and share in North America cereal."

The company raised its full year 2022 guidance for organic-basis net sales growth to approximately 10% from its prior guidance of 7%-8%.