- Kellogg Company (NYSE:K) reported first-quarter FY22 sales growth of 2.4% year-on-year to $3.67 billion, beating the consensus of $3.59 billion.
- Adjusted EPS of $1.10 beat the analyst consensus of $0.93.
- Kellogg North America's sales decreased 1%, Europe climbed 2%, Latin America's sales gained 8%, Asia Pacific, Middle East, and Africa's sales jumped 12%.
- Selling, general and administrative expenses declined 7.5% Y/Y to $642 million.
- The operating margin was 14%, and operating income for the quarter rose 9.5% to $517 million.
- The reported gross margin was 31.6%, while the adjusted gross margin contracted 280 basis points to 30.4%.
- Kellogg held $313 million in cash and equivalents as of April 2, 2022, and generated an operating cash flow of $327 million year-to-date.
- "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," said Chairman and CEO Steve Cahillane.
- Outlook: Kellogg raised FY22 organic net sales growth guidance to about 4% from 3%.
- Kellogg reaffirmed FY22 adjusted-basis EPS growth guidance of 1% - 2% on a currency-neutral basis.
- Price Action: K shares traded higher by 2.42% at $69.49 in premarket on the last check Thursday.
- Photo Via Wikimedia Commons
