Kellanova: Reports Q3-2023 Results And Provides Outlook

Chicago / IL. (knc) Kellanova announced third quarter 2023 results for what was then Kellogg Company, and provided an outlook for the fourth quarter, its initial period as Kellanova following its October 2nd spin-off of its North America cereal business. Highlights of Q3-2023:

  • Net sales in the third quarter were held flat by adverse currency translation and the divestiture of its business in Russia, and 4 percent organic-basis growth remained within the Company’s long-term target range.
  • Double-digit operating profit growth was sustained, as the Company continued to restore gross profit margin faster than expected around the world.
  • The Company’s year-to-date performance in net sales, operating profit, earnings per share, and free cash flow is ahead of pace for the full-year guidance previously provided for Kellogg Company.
  • On October 2nd, subsequent to the end of the third quarter, the Company completed the spin-off of WK Kellogg Co, renaming itself Kellanova and embarking on a new era with a more growth-oriented portfolio, a refreshed strategy, and higher long-term financial targets.
  • Guidance for the fourth quarter, the Company’s first as stand-alone Kellanova, includes net sales and operating profit that are expected to grow in line with targeted long-term growth rates excluding the estimated impacts of the spin-off, as well as the Russia divestiture and foreign currency translation.
«We are proud to complete our final quarter as Kellogg Company with a solid financial performance, even amidst challenging industry conditions and the execution of the spin-off of our North America cereal business,» said Steve Cahillane, Chairman, President and Chief Executive Officer. «Our restoration of profit margins continued, and our advantaged brands and markets delivered top-line growth in line with our long-term targets even as industry-wide price elasticities continued to rise. Our brands are strong, our profitability is improving, and our free cash flow and balance sheet give us financial flexibility, positioning us well as we launch into the Kellanova era.»

For additional information please read the Company’s PDF file below (224 KB):