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Jun 29, 2024
Kellanova Q2 2024 Earnings Report
Kellanova had a strong performance in Q2 2024, raising its full-year outlook.
Key Takeaways
Kellanova reported strong second quarter results with organic growth within its long-term target range. Double-digit operating profit and earnings per share growth were sustained. The company raised its full-year 2024 guidance for organic net sales growth, adjusted-basis operating profit, adjusted-basis earnings per share, net cash provided by operating activities and free cash flow.
Net sales in the second quarter were negatively impacted by adverse currency translation and the 2023 divestiture of its business in Russia, the Company's organic-basis growth remained within its long-term target range.
Double-digit operating profit growth was sustained, as the Company continued to improve profit margins faster than expected.
Earnings per share again increased at a double-digit rate, reflecting the higher operating profit.
On the strength of its first-half results, the Company raised its full-year 2024 guidance for organic net sales growth, adjusted-basis operating profit, adjusted-basis earnings per share, net cash provided by operating activities and free cash flow.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company raised its financial guidance for 2024, reflecting its stronger-than-anticipated first-half results.
Positive Outlook
- Organic-basis net sales growth guidance is raised to 3.5% or better, from its previous guidance of approximately 3% or better. This growth, against a recast 2023, remains within the Company's long-term target range, and will continue to be led by the Company's priority snacks brands and emerging markets.
- Adjusted-basis operating profit guidance range is raised and narrowed to approximately $1,875-1,900 million, from previous guidance of approximately $1,850-1,900 million. This guidance implies strong currency-neutral growth against a recast 2023.
- Adjusted-basis earnings per share guidance range is raised to approximately $3.65-3.75, from approximately $3.55-3.65, reflecting the strength of the first-half operating profit and other income.
- Net cash provided by operating activities is now forecast to be above $1.7 billion, with capital expenditure of about $0.7 billion, which is elevated this year for the expansion of Pringles capacity in emerging markets.
- As a result, free cash flow is now expected to be above $1.0 billion.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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