Kellogg's Q4 Performance Exceeds Expectations

Kellogg Company K reported fourth-quarter FY22 sales growth of 12% year-on-year to $3.83 billion, beating the consensus of $3.66 billion.
On an organic basis, which excludes the impact of currency, net sales increased by 16% year on year.
Adjusted EPS of $0.94 beat the analyst consensus of $0.84.
Kellogg North America's sales increased 14%, Europe fell 1%, Latin America's sales gained 22%, Asia Pacific, Middle East, and Africa's sales jumped 13%.
Selling, general and administrative expenses rose 21.8% Y/Y to $825 million.
Operating margin was 8.7%, and operating income for the quarter increased 2% to $335 million.
The company's reported gross margin expanded 90 basis points to 30.3%, while the adjusted gross margin expanded 120 basis points to 31.4%.
Kellogg held $299 million in cash and equivalents as of December 31, 2022, and generated an operating cash flow of $1.65 billion for the year.
"Facing significant cost inflation, worldwide bottlenecks and shortages, and a significant inventory rebuild in North America cereal following last year's fire and strike, the team executed with grit and agility to deliver another year of better-than-expected results, while at the same time making progress toward our planned transformation," said Chairman and CEO Steve Cahillane.
Outlook: Kellogg sees FY23 organic net sales growth of 5% - 7%. Kellogg expects FY23 adjusted EPS decline of (2)% - (4)% on a currency-neutral basis.
Price Action: K shares are trading lower by 0.47% at $66.88 on the last check Thursday.

Market News and Data brought to you by Benzinga APIs

Comments

Earnings Calendar

Never Miss Important Catalysts

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga