Vending

Kellogg reports sales dip for Q4 2021, FY gain

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February 10, 2022

Kellogg Co. reported a sales dip for Q4 2021, reflecting the negative impact of supply disruptions, notably the 12-week labor strike, and the lapping of an extra shipping week in the year-earlier quarter partially, according to an earnings release.

The company's fourth quarter 2021 GAAP net sales declined by approximately 1% from $3.46 billion in Q4 2021 to $3.42 billion in the quarter ending Jan. 2, 2022.

"Facing significant cost inflation, worldwide bottlenecks and shortages, and even a labor strike at all of our U.S. cereal facilities in the fourth quarter, the team executed with agility to deliver another year of on-guidance results," Steve Cahillane, Kellogg's chairman and chief executive officer, said in the press release.

• Full year 2021 reported net sales increased by approximately 3% from $12.7 billion to $14.2 billion, driven by positive price/mix in all four regions as well as modestly favorable foreign currency translation, which together more than offset the impact of lapping the prior fiscal year that included a 53rd week.
• On an organic basis, net sales for the full year increased by 3.5%, despite lapping unusually strong, pandemic-aided organic growth in 2020.
• Net income rose from $208 million to $434 million in the comparative quarters, and from $1.26 billion to $1.49 billion for the comparative years.
• Basic earnings per share rose from 60 cents to $1.27 while diluted EPS rose from 59 cents to $1.26 for the comparative quarters.
• Basic EPS rose from $3.65 to $4.36 while diluted EPS rose from $3.63 to $4.33 for the comparative years.
• Adjusted EPS declined from 86 cents to 83 cents for the comparative quarters and rose from $3.99 to $4.04 for the comparative years.
• Kellogg Europe's reported net sales in the fourth quarter decreased by approximately 6%, due to adverse foreign currency translation and lapping an extra shipping week in the year-earlier quarter.
• Kellogg Latin America's reported net sales in the fourth quarter increased by approximately 6% as strong price realization, along with Pringles consumption growth momentum in Mexico and Brazil, more than offset adverse foreign currency translation and the lapping of notably strong volume growth in the year-ago quarter.
• Kellogg Asia Pacific, Middle East and Africa's reported net sales in the fourth quarter increased by approximately 7%, as broad-based consumption growth momentum and strong price/mix growth more than offset the negative impacts of adverse foreign currency translation and the lapping of an extra shipping week in the year-earlier quarter.

Shares traded Thursday at $63.84 against a 52-week range of $56.61-$68.80.

The $3.42 billion in quarterly revenue beat analyst expectations by $30 million and the non-GAAP EPS of 83 cents beat expectations by 4 cents, according to Seeking Alpha.