Battle Creek, MI-based Kellogg Co. (NYSE: K) announced this week stronger-than-expected second-quarter 2021 results and affirmed its full-year financial guidance.
Kellogg’s second-quarter 2021 GAAP ("reported") net sales increased 3% year on year, on favorable foreign currency translation.
On an organic basis, which excludes the impact of currency, the company's net sales were roughly flat, as the impact of lapping last year's surge in at-home demand in developed markets was offset by momentum in emerging markets, recovery in away-from-home channels, and positive price/mix.
KEY POINTS
- During the global COVID-19 pandemic and unprecedented operating environment, Kellogg continues to execute well against its priorities of protecting our employees' health and safety, supplying food to the marketplace, and aiding our communities.
- Net sales grew on top of a notably strong year-earlier period, led by double-digit growth in the company's emerging markets businesses.
- Around the world, the Kellogg sustained momentum across many key brands, continuing to outpace their categories' consumption growth on a two-year compound annual growth basis.
- Despite comparing against outsized operating leverage in the year-earlier quarter, Kellogg's operating profit was roughly flat year on year, as the Company managed effectively through widespread supply chain challenges and high-cost inflation across the broader economy.
- Reflecting underlying business momentum, Kellogg raised its full-year outlook for net sales, while affirming its guidance for operating profit, earnings per share, and cash flow to reflect a higher-cost business environment.
Kellogg’s 2021 second-quarter earnings results are posted at the company’s website. Documents include the financial press release and tables, GAAP reconciliations and presentation slides.
