WK Kellogg Q4: EPS Beat, Sales Miss Amid Challenging Market Conditions

WK Kellogg Co KLG shares are trading lower on Tuesday.

WK Kellogg reported fourth-quarter adjusted earnings per share of 42 cents, beating the street view of 26 cents. Quarterly sales of $640 million (down 1.8%) missed the analyst consensus estimate of $641.69 million.

In the fourth quarter, price/mix increased by 3.8%, but volume dropped by 5.6%. The net sales decline was due to a tough business environment and the weak Canadian Dollar against the U.S. Dollar.

The company reported adjusted EBITDA of $57 million, up 7.5% year over year. Adjusted EBITDA margin expanded to 8.9% from 8.2%.

Fourth quarter reported net income was $19 million, a 26.7% increase year-over-year. These increases reflect improved productivity and reduced waste within its supply chain operations.

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WK Kellogg exited the quarter with cash and equivalents worth $40 million and inventories worth $353 million. Long-term debt as of quarter end stood at $460 million.

As previously announced on February 6 2025, the company approved a 3% increase in its quarterly dividend to $0.165, up from $0.16 per share.

The dividend will be paid on March 14 to shareholders of record on February 28.

Outlook: Kellogg’s 2025 organic net sales are expected to decline by about 1.0%. Adjusted EBITDA growth for 2025 is projected to be between 4.0% and 6.0%.

Price Action: KLG shares are trading lower by 0.67% to $16.20 at last check Tuesday.

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