Kellanova Q1 2021 Earnings Report
Key Takeaways
Kellogg Company reported strong first quarter 2021 results with net sales growth broad-based across regions and global categories, and operating profit and earnings per share grew on top of year-ago exceptional growth. On the strength of this performance, the Company increased its full-year financial outlook.
Kellogg continued to execute well against its priorities of protecting employees' health and safety, supplying food to the marketplace, and aiding communities during the COVID-19 pandemic.
Strong net sales growth was broad-based across regions and global categories despite lapping exceptional year-ago performance.
Operating profit and earnings per share grew on top of year-ago exceptional growth as higher net sales and operating leverage resulted in balanced financial delivery.
Kellogg increased its full-year financial outlook.
Kellanova
Kellanova
Kellanova Revenue by Segment
Kellanova Revenue by Geographic Location
Forward Guidance
Kellogg Company raised its full-year financial guidance on the strength of its first quarter results.
Positive Outlook
- Organic net sales growth is now expected to finish 2021 approximately flat year on year, up from previous guidance of a decline of approximately (1)%. This implies a 2-year compound annual growth rate of almost 3%.
- Currency-neutral adjusted operating profit growth is now projected to decline approximately (1)% - (2)% year on year, an improvement from previous guidance of a decline of approximately (2)%. This equates to a 2-year compound annual growth rate of approximately 4% excluding since-divested businesses from the 2019 base.
- Currency-neutral adjusted earnings per share for the full year is now estimated to increase by approximately +1% - 2% year on year, an improvement from previous guidance +1%. This implies a 2-year compound annual growth rate of approximately 5% excluding since-divested businesses from the 2019 base.
- Net cash provided by operating activities is now expected to finish 2021 at approximately $1.6 - $1.7 billion, above the previous guidance range of $1.6 billion.
- Cash flow is now expected to finish 2021 at $1.1 - $1.2 billion, an increase from the previous guidance of approximately $1.1 billion.
Challenges Ahead
- Guidance excludes any significant supply chain or other prolonged market disruptions related to the pandemic or global economy.
- Currency-neutral adjusted operating profit growth is now projected to decline approximately (1)% - (2)% year on year
- Uncertainty of the magnitude, duration, geographic reach, impact on the global economy and current and potential travel restrictions of the COVID-19 outbreak
- The current, and uncertain future, impact of the COVID-19 outbreak on business, growth, reputation, prospects, financial condition, operating results (including components of financial results), and cash flows and liquidity
- The risk that disruptions from the divestiture will divert management's focus or harm the Company’s business