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Oct 01, 2022
Kellanova Q3 2022 Earnings Report
Kellogg Company reported strong net sales growth, mitigated negative profit impacts, and raised its full-year outlook.
Key Takeaways
Kellogg Company announced its Q3 2022 results, showcasing strong net sales growth driven by positive price/mix and momentum in snacks globally. The company effectively navigated global supply challenges and cost pressures, leading to an increased full-year outlook for organic-basis net sales growth and adjusted earnings per share.
Strong net sales growth, bolstered by positive price/mix.
Momentum in snacks globally and in noodles and cereal in emerging markets.
Continued rebound in North America cereal.
Mitigated negative impacts on profit of high cost inflation, economy-wide bottlenecks and shortages through productivity and revenue growth management.
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 has updated its full-year 2022 guidance.
Positive Outlook
- Raises its guidance for organic-basis net sales growth to approximately +10%, from its prior guidance of +7-8%.
- Reflects better-than-expected growth through the most recent quarter, as well as revenue growth management actions and good in-market momentum, particularly in snacks and emerging markets.
- Raises its guidance for adjusted-basis operating profit growth to approximately +6% on a currency-neutral basis, from its prior guidance of +4-5%.
- Reflects the Company's better-than-expected results in its latest quarter, and incorporates continued high cost inflation, bottlenecks and shortages, and increased brand investment in the second half.
- Raises its guidance for adjusted-basis earnings per share growth to approximately +3% on a currency-neutral basis, from prior guidance of approximately +2%.
Challenges Ahead
- Partially offset by a further reduction in non-operating, non-cash pension income, stemming from a remeasurement that now reflects this year's higher interest rates and sharply lower equity and bond values.
- Updates its expectation for net cash provided by operating activities to be approximately $1.7 billion
- Capital expenditure of approximately $0.5 billion, resulting in affirming its guidance for cash flow of approximately $1.2 billion.
- Excluded from this guidance are any significant supply chain or other prolonged market disruptions related to the pandemic or the global economy.
- Guidance and goals expressed in this press release are on a currency-neutral basis, and adjusted to exclude restructuring charges, mark-to-market adjustments of pensions commodity contracts, certain equity investments and certain foreign currency contracts, and other costs impacting comparability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income