Loading...
•
Mar 28, 2020
Kellanova Q1 2020 Earnings Report
Kellogg's reported better-than-expected results due to increased demand during the COVID-19 pandemic and the Deploy for Growth strategy.
Key Takeaways
Kellogg Company reported a decrease in net sales by 3.1%, but organic net sales increased by 8.0%. The company's performance was aided by increased demand due to the COVID-19 pandemic and the Deploy for Growth strategy. They affirmed their full-year financial guidance.
Priorities have been ensuring employees' health and safety, supplying food, and aiding communities during the COVID-19 pandemic.
The Deploy for Growth strategy continues to drive business momentum.
Demand for products increased significantly in March due to consumers stocking up on packaged foods.
The company affirmed its full-year financial guidance, with a shift in sales and earnings toward the first half of the year.
Kellanova
Kellanova
Kellanova Revenue by Segment
Kellanova Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comLatin America Revenue
CapyFin.comAMEA Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comLatin America Revenue
CapyFin.comAMEA Revenue
CapyFin.com Forward Guidance
Kellogg Company affirmed its full-year financial guidance, with sales and profit delivery shifting toward the first half of the year.
Positive Outlook
- Organic net sales growth of +1-2%.
- Cash provided by operating activities is projected to be $1.5 to $1.6 billion.
- Capital expenditures are expected to be approximately $0.6 billion.
- Cash flow, defined as cash provided by operating activities reduced by capital expenditures, continues to be projected at $0.9 to $1.0 billion.
Challenges Ahead
- Adjusted operating profit on a currency-neutral basis decline of approximately (4)%, as the absence of results from divested businesses more than offsets growth in the base business.
- Adjusted earnings per share, on a currency-neutral basis, decline of (3) to (4)%, as the absence of results from divested businesses more than offsets growth in the base business.
- Excluded from this guidance are significant supply chain or other market disruptions related to the pandemic or global economy.
Revenue & Expenses
Visualization of income flow from segment revenue to net income