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Jan 02, 2021
Kellanova Q4 2020 Earnings Report
Kellogg Company reported strong Q4 2020 results, driven by net sales growth and disciplined execution.
Key Takeaways
Kellogg Company announced strong fourth quarter and full year 2020 results, with net sales increasing on both a reported and organic basis. The company issued 2021 financial guidance that implies growth on a two-year basis.
Kellogg executed well against its priorities of ensuring employees' health and safety, supplying food to the marketplace, and aiding its communities.
The company finished the year with results that were on or better than its guidance for each of its key metrics.
Kellogg delivered fourth quarter and full year net sales growth on a reported and organic basis, underpinned by strong in-market performance.
The company generated better-than-expected cash from operating activities in 2020, enabling it to reduce its debt for greater financial flexibility.
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 2021. Specifically, the Company is projecting organic net sales to decrease by approximately (1)%, adjusted operating profit on a currency-neutral basis is expected to decline by approximately (2)%, and adjusted earnings per share, on a currency-neutral basis, is expected to increase by approximately 1%.
Positive Outlook
- Organic net sales to decrease by approximately (1)%, as it compares against unusually strong, COVID-related growth in the prior year; this implies a 2-year compound annual growth of about 2.5%.
- Adjusted operating profit on a currency-neutral basis is expected to decline by approximately (2)%, as it compares against unusually strong, COVID-related growth and a 53rd week in the prior year; this implies a 2-year compound annual growth of 3-4%, after excluding the profit of since-divested businesses from the 2019 base.
- Adjusted earnings per share, on a currency-neutral basis, is expected to increase by approximately 1%; this implies a 2-year compound annual growth of 4-5% after excluding the profit of since-divested businesses from the 2019 base.
- Net cash provided by operating activities is expected to be approximately $1.6 billion, with capital expenditure of about $0.5 billion.
- Cash flow is expected to be approximately $1.1 billion.
Challenges Ahead
- Organic net sales to decrease by approximately (1)%, as it compares against unusually strong, COVID-related growth in the prior year.
- Adjusted operating profit on a currency-neutral basis is expected to decline by approximately (2)%, as it compares against unusually strong, COVID-related growth and a 53rd week in the prior year.
- Adjusted earnings per share, on a currency-neutral basis, is expected to increase by approximately 1%.
- Excluded from this guidance, are any significant supply chain or other prolonged market disruptions related to the pandemic or global economy.
- Guidance for operating profit excludes the impact of costs related to restructuring programs, mark-to-market adjustments, multi-employer pension plan exit liabilities, and other items that could affect comparability, and foreign currency translation.