Vending
Kellogg reports strong Q1 2022 results, raises FY guidance
May 10, 2022
Kellogg Co. reported net sales growth for Q1 2022 led by snacks, international momentum and positive price/mix, according to an earnings report. The company is raising its full-year guidance for organic basis net sales growth. Highlights include:
- Net sales rose 2.4% from $3.58 billion in Q1 2021 to $3.67 billion in the quarter ending April 2, 2022.
- Net income rose from $371 million to $424 million in the comparative quarters.
- Basic earnings per share rose from $1.07 to $1.24 while diluted EPS rose from $1.07 to $1.23.
- Adjusted EPS dipped from $1.11 to $1.10.
- Kellogg North America's reported net sales in the first quarter declined by less than 1%, as growth momentum in snacks and positive price/mix from revenue growth management actions were offset by volume declines related to lapping strong 2-year comparisons and to supply disruptions, most notably low cereal inventory stemming from last year's fire and labor strike.
- Kellogg Europe's first quarter reported net sales increased 2%, as price/mix growth more than offset a modest volume decline related to lapping strong 2-year comparisons and significantly adverse currency translation.
- Kellogg Latin America's first quarter reported net sales increased 8%, as price/mix growth more than offset a decline in volume against a strong year-earlier gain, and additionally aided by favorable currency translation.
- Kellogg Asia Pacific, Middle East and Africa's first quarter reported net sales increased by 12%, as price/mix growth more than offset a decline in volume related to lapping strong 2-year comparisons.
Shares traded at $73.58 today against a 52-week range of $59.54-$75.56.
The $3.67 billion in quarterly revenue beat analyst expectations by $80 million and the non-GAAP EPS of $1.10 beat expectations by 17 cents, according to Seeking Alpha.
"We are pleased to report another quarter of solid results, getting off to a better start to the year than we had expected," Steve Cahillane, chairman and CEO, said in the press release. "The strength of our portfolio is evident, as we more than offset the sales and cost impact of supply recovery in North America cereal with sustained momentum in snacks growth around the world."
The company raised its guidance for organic-basis net sales growth to approximately 4%, from its prior guidance of approximately 3%, reflecting momentum in its business, particularly snacks globally and noodles in Africa, as well as by higher price/mix growth required to cover incremental cost inflation in the economy.
The company affirmed its guidance for adjusted-basis earnings per share growth of 1%-2% on a currency-neutral basis, reflecting the unchanged operating profit outlook as well as offsetting impacts of lower other income and a lower effective tax rate.
