In the first three months of the year, Kellogg’s saw a significant increase in sales and profits. The food company therefore adjusts its annual forecasts upwards.
Strong momentum for Pringles and breakfast cereals
Kellogg’s realised in the first quarter a turnover of 3.6 billion dollar (almost 3 billion euro), an increase of more than 5% compared to the same period last year. Increased demand for packaged foods for consumption at home and favourable currency effects more than compensated for continuing weakness in the out-of-home channel. On an organic basis, revenues increased by 4.2%.
The cereal manufacturer saw sales growth across the board, although there were significant regional differences. In Europe, Pringles maintained its strong momentum and breakfast cereal sales were also still above pre-pandemic levels. However, the strongest growth was in the Asia, Middle East and Africa region, where sales increased by 14%, driven by a pick-up in demand for snacks, cereals and noodles.
Kellogg’s posted an operating profit of 472 million dollar (391 million euro) last quarter, up nearly 3% year-on-year. The adjusted operating profit even climbed 13%.
Based on these results, the American food company increases its financial expectations for the full year. Kellogg’s now expects stable sales on an organic basis, while it previously predicted a slight decline of 1%. Furthermore, the adjusted operating result is expected to decrease with 1 to 2%; previously Kellogg’s held on to a decrease of 2%.