- Kellogg Co (NYSE: K) reported third-quarter FY22 sales growth of 9% year-on-year to $3.95 billion, beating the consensus of $3.77 billion. Organic net sales growth was 13.4%.
- Adjusted EPS of $1.01 beat the analyst consensus of $0.97.
- Kellogg North America's sales increased 14%, Europe fell 11%, Latin America's sales gained 13%, Asia Pacific, Middle East, and Africa's sales jumped 12%.
- Selling, general and administrative expenses rose 9.3% Y/Y to $785 million.
- The operating margin was 9.3%, and operating income for the quarter declined 17.6% to $368 million.
- The reported gross margin compressed 290 basis points to 29.2%, while the adjusted gross margin expanded 140 basis points to 30.8%.
- Kellogg held $373 million in cash and equivalents as of October 1, 2022, and generated an operating cash flow of $1.1 billion year-to-date.
- "We're pleased to report another quarter of better-than-expected financial performance and an increase to our outlook for the year," said Steve Cahillane, Chairman, and CEO. "This required navigating effectively through global supply challenges and working to offset cost pressures with productivity and revenue growth management, all while sustaining momentum in snacks and emerging markets, and continuing to recover inventory and share in North America cereal."
- Outlook: Kellogg raised its FY22 organic net sales growth outlook to more than 10% from its prior guidance of 7% - 8%.
- Kellogg raised FY22 adjusted-basis EPS growth guidance to +3% on a currency-neutral basis from prior guidance of +2%.
- Price Action: K shares are trading lower by 6.61% at $70.81 on the last check Thursday.
- Photo Via Company
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.Read the original article on Benzinga
