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Dec 28, 2019
Kellanova Q4 2019 Earnings Report
Kellogg Company reported a solid finish to 2019 with net sales decreasing by approximately 3% year on year, but organic net sales increased by nearly 3%.
Key Takeaways
Kellogg Company's Q4 2019 results showed a decrease in reported net sales due to the absence of results from divested businesses, but organic net sales increased. The company's primary financial objective in 2019 was to deliver net sales growth, which they achieved through the execution of their Deploy For Growth strategy.
Full year net sales growth was delivered on a reported and organic basis.
Results finished the year within or better than guidance ranges for key metrics.
Divestiture of non-core businesses enhanced long-term focus and profitability.
Sustained return to organic-basis net sales growth in the fourth quarter.
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
The Company issued its initial financial guidance for 2020. Specifically, the Company is projecting organic net sales to increase by +1-2%.
Positive Outlook
- Organic net sales to increase by +1-2%.
- Cash flow is expected to improve to $0.9 to $1.0 billion.
- Projecting organic net sales to increase
- Improved cash flow
- currency-neutral adjusted operating profit and earnings per share growth excluding the impact of its recent divestiture
Challenges Ahead
- Adjusted operating profit on a currency-neutral basis is expected to decline (4)%, as the absence of results from divested businesses more than offsets growth in the base business.
- Adjusted earnings per share, on a currency-neutral basis, is expected to decline (3) to (4)%,as the absence of results from divested businesses more than offsets growth in the base business.
- Adjusted operating profit on a currency-neutral basis is expected to decline
- Adjusted earnings per share, on a currency-neutral basis, is expected to decline
- Absence of results from divested businesses
Revenue & Expenses
Visualization of income flow from segment revenue to net income