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Jun 28, 2025
Kellanova Q2 2025 Earnings Report
Kellanova reported slightly higher revenue in Q2 2025 despite category softness, but operating profit and EPS declined compared to the prior year.
Key Takeaways
Kellanova posted modest organic revenue growth in Q2 2025, driven by strength in the Africa noodles business. However, the company faced challenges from demand softness in core categories, leading to declines in operating profit and EPS. Management exceeded internal expectations despite the macro environment and continues to focus on executing through the pending Mars merger.
Net sales rose slightly to $3.203 billion, with organic sales also up modestly.
Reported operating profit declined 11% to $438 million, while adjusted operating profit fell 5%.
EPS was $0.85, with adjusted EPS at $0.94, down from $1.00 and $1.01, respectively.
Growth in AMEA—especially African noodles—offset broader softness in snacking and frozen foods.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Due to the pending merger with Mars, Incorporated, Kellanova is not providing forward-looking guidance.
Positive Outlook
- Strong performance in emerging markets, particularly Africa noodles.
- Slight increase in consolidated organic sales.
- Disciplined cost and productivity management.
- Above-expectation earnings delivery despite category softness.
- Progress on merger-related milestones.
Challenges Ahead
- Category softness in snacking, cereal, and frozen foods.
- Continued volume declines in North America and Latin America.
- Operating margin pressures due to higher costs and adverse mix.
- Decline in EPS and operating profit year over year.
- No improvement in demand softness across most categories.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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