Kellanova Q3 2022 Earnings Report
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
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