BATTLE CREEK, Mich. - May 3, 2018 - Kellogg Company announced first-quarter 2018 results, confirmed its full-year outlook for its base business, and updated its financial guidance to reflect its increased equity interests in its West Africa ventures.
Highlights:
• Q1 results included growth in net sales, operating profit, and earnings per share.
• The quarter featured continued improvement in net sales performance, driven by key businesses and brands across the portfolio, and fueled by Deploy for Growth priorities and increased investment.
• The Company announced that it expanded its interests in business partnerships in West Africa, resulting in a stake in a leading Nigerian packaged food company and the consolidation into Kellogg's financials of a major Nigerian food distributor.
• Management updated its financial guidance* for 2018, affirming previous guidance for the base business, and adding the inclusion of the recently consolidated West Africa results: It now expects +3-4% growth in net sales on a currency-neutral basis; adjusted operating profit growth of +5-7% on a currency-neutral basis; and adjusted earnings per share growth of +9-11% on a currency-neutral basis.
"We delivered a strong first quarter,” said Steve Cahillane, Kellogg Company’s Chairman and Chief Executive Officer. “Net sales, operating profit, and earnings per share all achieved year-on-year growth, keeping us well on pace for our full-year targets. We made visible progress on key elements of our growth plan, achieving accelerated growth in frozen foods and Pringles, stabilizing cereal in developed international cereal markets, and realizing underlying improvement in U.S. Snacks following our transition out of Direct Store Delivery distribution. We also accelerated our growth in emerging markets, and we increased our investment stakes in our fast-growing West Africa ventures. We still have work to do, and our investment in capabilities and growth will continue, but we are firmly on the right track.”
