BATTLE CREEK (dpa-AFX) - Kellogg Company (K) said, on an adjusted basis, its third quarter operating profit was flat, and excluding currency translation, it increased by 4%. On an adjusted basis, earnings per share decreased by 8%, and excluding currency translation, adjusted earnings per share decreased year on year by 3%.
GAAP net sales increased by 9% year on year, as positive price/mix, sustained momentum in snacks, noodles, and international cereal as well a rebounding North America cereal business more than offset the impacts of price elasticity, halted shipments into Russia, and adverse currency translation. On an organic basis, net sales increased by 13%.
Looking ahead, the company increased its guidance for adjusted-basis earnings per share growth to approximately 3% on a currency neutral basis, from prior guidance of approximately 2%. Kellogg also raised its guidance for adjusted-basis operating profit growth to approximately 6% on a currency neutral basis, from prior guidance of 4-5%. The company increased its guidance for organic-basis net sales growth to approximately 10%, from prior guidance of 7-8%.
Third quarter adjusted earnings per share was $1.01 compared to $1.09, prior year. Currency-neutral adjusted EPS was $1.06, down 2.8% from last year. Analysts on average had expected the company to earn $0.98 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
Bottom line totaled $310 million, or $0.90 per share compared with $307 million, or $0.89 per share, a year ago.
Revenue rose 9.1% to $3.95 billion from $3.62 billion last year. Analysts on average had estimated $3.78 billion in revenue.
The company noted that it continues to work towards planned separations of its North America cereal and plant based businesses.
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