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Oct 02, 2021
Kellanova Q3 2021 Earnings Report
Kellogg Company reported third quarter results and reaffirmed its full-year financial guidance.
Key Takeaways
Kellogg Company's third quarter 2021 net sales increased, led by international momentum and positive price/mix. The company increased operating profit year on year, despite high costs and economy-wide supply challenges. Kellogg raised its full-year outlook for net sales, while reaffirming its guidance for operating profit, earnings per share, and cash flow to reflect a current business environment of supply challenges and higher costs.
Sustained net sales growth, led by international momentum and positive price/mix.
Increased operating profit year on year, in spite of high costs and economy-wide supply challenges.
Continued to outpace category consumption growth in most key markets on a 2-year compound annual growth basis, led by many of the Company's biggest brands.
Reflecting underlying business momentum, Kellogg raised its full-year outlook for net sales, while reaffirming its guidance for operating profit, earnings per share, and cash flow to reflect a current business environment of supply challenges and higher costs.
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 reaffirmed its full-year financial guidance for operating profit, earnings per share and cash flow, as an improved outlook for net sales is offset by the impact of industry-wide and Kellogg-specific supply chain challenges, and high cost inflation expected to persist.
Positive Outlook
- Organic net sales growth is now expected to be 2-3% in 2021, an increase from the prior guidance of 0 - 1%, despite lapping last year's exceptional growth.
- This implies a 2-year compound annual growth rate of more than 3%.
- The outlook for currency-neutral adjusted operating profit remains 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 remains 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.
- The outlook for net cash provided by operating activities remains approximately $1.6 - $1.7 billion, with capital expenditure of approximately $0.5 billion.
- As a result, the outlook for cash flow is $1.1 - $1.2 billion.
- Due to the current supply and labor challenges, operating profit, earnings per share, and cash flow could finish at the lower end of these guidance ranges.
- Excluded from this guidance are any significant disruptions related to the pandemic, the global economy, a prolonged U.S. labor strike, or unexpected events that may be realized in the remainder of the year.