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Jul 03, 2021
Kellanova Q2 2021 Earnings Report
Kellogg reported stronger-than-expected results, driven by double-digit growth in emerging markets and momentum across key brands, while affirming its full-year financial guidance.
Key Takeaways
Kellogg Company announced stronger-than-expected second quarter 2021 results and affirmed its full-year financial guidance. Net sales grew, led by double-digit growth in emerging markets. The company raised its full-year outlook for net sales, while affirming its guidance for operating profit, earnings per share, and cash flow.
Kellogg continues to execute well against its priorities of protecting employees' health and safety, supplying food to the marketplace, and aiding our communities.
Net sales grew on top of a notably strong year-earlier period, led by double-digit growth in the Company's emerging markets businesses.
Around the world, the Company sustained momentum across many key brands, continuing to outpace their categories' consumption growth on a 2-year compound annual growth basis.
Kellogg's operating profit was roughly flat year on year, as the Company managed effectively through widespread supply chain challenges and high cost inflation across the broader economy.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Kellogg Company affirmed its full-year financial guidance on operating profit, earnings per share and cash flow, as an improved outlook for net sales is offset by the impact of industry-wide supply chain challenges and high cost inflation expected to persist in the second half.
Positive Outlook
- Organic net sales growth is now expected to be 0-1% in 2021, an increase from previous guidance for flat net sales, reflecting recent momentum in the business, and despite lapping last year's exceptional growth.
- This implies a 2-year compound annual growth rate of almost 3%.
- The outlook for currency-neutral adjusted operating profit is unchanged, calling for a decline of approximately (1)% - (2)% year on year as it laps last year's exceptional growth.
- This equates to a 2-year compound annual growth rate of almost 4% excluding since-divested businesses from the 2019 base.
- The outlook for currency-neutral adjusted earnings per share is unchanged at approximately +1% - 2% growth.
Challenges Ahead
- This implies a 2-year compound annual growth rate of almost 5% excluding since-divested businesses from the 2019 base.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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