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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.
Revenue by Segment
Revenue by Geographic Location
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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