- Kellogg Co (NYSE: K) reported second-quarter FY22 sales growth of 8.7% year-on-year to $3.86 billion, beating the consensus of $3.64 billion.
- Adjusted EPS of $1.18 beat the analyst consensus of $1.05.
- Kellogg North America's sales increased 12%, Europe fell 3%, Latin America's sales gained 8%, Asia Pacific, Middle East, and Africa's sales jumped 11%.
- Selling, general and administrative expenses rose 1.1% Y/Y to $728 million.
- The operating margin was 10.7%, and operating income for the quarter declined 17.6% to $415 million.
- The reported gross margin compressed 490 basis points to 29.6%, while the adjusted gross margin expanded 20 basis points to 32.4%.
- Kellogg held $323 million in cash and equivalents as of July 2, 2022, and generated an operating cash flow of $805 million year-to-date.
- "We sustained notably strong growth momentum in snacks and emerging markets, while accelerating the recovery of supply and category share in our North America cereal business, all while leveraging productivity initiatives and revenue growth management to mitigate the impact of decades-high input cost inflation," said Chairman and CEO Steve Cahillane.
- The company said it is readying for the recently announced proposed separation of its North America Cereal and Plant-based businesses, targeted for completion by the end of 2023.
- Related: Kellogg To Split Into Three Companies - All You Need To Know
- Dividend: The company's dividend of $0.59 per share on the common stock is payable on September 15, 2022, to shareowners of record on September 1, 2022.
- Outlook: Kellogg raised its FY22 organic net sales growth outlook to 7% - 8% from 4%.
- Kellogg raised FY22 adjusted-basis EPS growth guidance to +2% on a currency-neutral basis from prior guidance of 1% - 2%.
- Price Action: K shares are trading higher by 1.81% at $75.30 in premarket on the last check Thursday.
- Photo Via Company
Read at Benzinga