US: Costs fail to dent Kellogg's optimism
Kellogg, the world's largest cereal maker, has seen rising costs hit profits during the third quarter of the year.
The dip in profits, however, was not enough to stop the company raising its full-year earnings guidance.
Kellogg saw underlying operating profit dip 2% to US$492m due to rising commodity costs and increased advertising spending. Kellogg's spending on advertising rose in the double-digits during the quarter.
Kellogg said it now expects full-year earnings to be $2.72-2.75 a share, up $0.01 from its previous guidance.
CEO David Mackay said: ""Despite ongoing inflation challenges, we will continue to invest in our business through advertising and cost-saving initiatives, which gives us increased visibility for future growth."
On an underlying basis, turnover rose 4% to $3bn thanks to rising sales in North America, Europe and Latin America. Sales in Kellogg's Asia-Pacific markets dipped 1%.
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