Vending

Kellogg lifts Q4, FY 2022 sales, earnings fall

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February 9, 2023

Kellogg Co. reported mixed results for Q4 and FY 2022, with sales rising and earnings falling, according to a financial release. Fourth quarter results surpassed analyst expectations.

Highlights include:

• Net sales increased by 12%, from $3.421 billion in Q4 2021 to $3.833 billion in the quarter ending Dec. 31, 2022.
• Full year net sales rose from $14.181 billion in 2021 to $15.315 billion in 2022.
• Net income fell from $434 million to a $100 million loss in the comparative quarters while full year net income fell from $1.495 billion to $962 million.
• Basic earnings per share fell from $1.27 to a 29-cent loss in the comparative quarters while diluted earnings fell from $1.26 to a 29-cent loss.
• Full year basic earnings fell from $4.36 in 2021 to $2.81 in 2022, and diluted earnings fell from $4.33 to $2.79.
• Adjusted diluted EPS rose 13.3%, from 83 cents to 94 cents in the comparative quarters, while full year adjusted diluted EPS rose 1.2%, from $4.16 to $4.38.
• Kellogg North America reported net sales in the fourth quarter increased by 14%, driven by double-digit price/mix growth and momentum in snacks, as well as recovery from the impact of the prior year's fire and strike in the company's North America cereal business.
• Kellogg Europe reported net sales in the fourth quarter decreased by 1%, due to adverse foreign currency translation, largely offset by positive price/mix growth and momentum in snacks. On an organic basis, net sales increased by 8%.
• For the full year, Kellogg Europe reported net sales decreased by 4%, reflecting adverse foreign currency translation that more than offset price/mix growth and momentum in snacks.
• Kellogg Latin America reported net sales in the fourth quarter increased by 22% due to strong price/mix growth and favorable foreign currency translation, with growth in snacks and cereal. On an organic basis, net sales grew by 19%
• For the full year, Kellogg Latin America reported net sales increased by 13%, driven by strong price/mix growth and favorable foreign currency translation, with growth in snacks and cereal.
• Kellogg Asia Pacific, Middle East and Africa reported net sales in the fourth quarter increased by 13%, due to strong price/mix growth that more than offset adverse foreign currency translation.

Shares traded today at $67.11 against a 52-week range of $59.54 - $77.17.

The approximate $3.83 billion in quarterly revenue beat analyst expectations by $170 million while the non-GAAP EPS of 94 cents beat expectations by 9 cents, according to Seeking Alpha.

"Facing significant cost inflation, worldwide bottlenecks and shortages and a significant inventory rebuild in North America cereal following last year's fire and strike, the team executed with grit and agility to deliver another year of better-than-expected results, while at the same time making progress toward our planned transformation," Steve Cahillane, chairman and CEO, said in the press release.

The company issued 2023 financial guidance that calls for another year of strong currency-neutral growth in net sales and adjusted-basis operating profit.