Kellogg Company: Reports 2022 First Quarter Results

Battle Creek / MG. (kc) Kellogg Company announced first quarter 2022 results and
affirmed its full-year earnings guidance. Highlights:

  • Sustained net sales growth, led by snacks, international momentum, and positive price/mix.
  • Mitigated the profit impacts of high cost inflation, economy-wide bottlenecks and shortages, and the residual impact of last year’s fire and strike through productivity, revenue growth management, and discipline on investment.
  • Restoring North America cereal inventory faster than anticipated from last year’s fire and strike.
  • Raising full-year guidance for organic-basis net sales growth, reflecting momentum and revenue growth management actions.
  • Affirming guidance for operating profit, earnings per share, and cash flow, as the improved sales outlook offsets incremental pressures from accelerated cost inflation and business disruption, including impacts related to the war in Ukraine.

«We are pleased to report another quarter of solid results, getting off to a better start to the year than we had expected,» said Steve Cahillane, Kellogg Company’s Chairman and Chief Executive Officer. «The strength of our portfolio is evident, as we more than offset the sales and cost impact of supply recovery in North America cereal with sustained momentum in snacks growth around the world. Our ability to execute with agility was also on display, as we navigated through a challenging supply environment and delivered productivity and price realization amidst decades-high cost inflation.»

Cahillane added, «Our strong start to the year, coupled with good sales momentum, allow us to affirm earnings guidance even as the outlook has worsened for cost inflation and incremental business disruptions, including impacts related to the war in Ukraine. This is a testament to our strategy, our portfolio, and our people.»