Kellogg Company: Reports 2020 Fourth Quarter Results

Battle Creek / MG. (kc) Kellogg Company announced fourth quarter and full year 2020 results and provided a financial outlook for 2021. Highlights:

  • Since the onset of the Covid-19 pandemic, Kellogg has 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: organic net sales, currency-neutral adjusted operating profit, currency-neutral adjusted earnings per share, and cash flow.
  • The Company delivered fourth quarter and full year net sales growth on a reported and organic basis, underpinned by strong in-market performance.
  • Fourth quarter and full year 2020 operating profit and earnings per share increased year on year, even as fourth quarter earnings per share were negatively impacted by expenses related to the redemption of debt in December.
  • The company generated better-than-expected cash from operating activities in 2020, enabling it to reduce its debt for greater financial flexibility.
  • Despite continued uncertainty during the pandemic, the Company issued 2021 financial guidance that implies growth on a two-year basis that is consistent with its goal of balanced financial delivery.
  • The Company announced an increase in its quarterly dividend rate in the second quarter, and its intention to resume share repurchases this year.

«The year 2020 was a year unlike any other, one in which the world faced unprecedented challenges,» said Steve Cahillane, Kellogg Company’s Chairman and Chief Executive Officer. «With the priorities of keeping our employees safe, supplying food to the marketplace, and aiding our communities, we have managed well through the pandemic, while also delivering exceptional results. None of this would have been possible without the dedication, resilience, and agility of our Kellogg colleagues around the world.»

Cahillane added, «We enter 2021 with solid momentum, and I remain confident that Kellogg will emerge from this pandemic a stronger Company. We’ve enhanced capabilities, reached incremental households, invested in our supply chain, and improved our financial flexibility. We are on sound footing for continued balanced financial delivery.»