Rising sales at home and abroad have buoyed full-year revenue and profits at Kellogg, the US-based cereal giant.
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The company shrugged off higher commodity costs and increased marketing expenditure to post a 6% rise in operating profit to US$1.9bn for 2007.
Currency fluctuations helped the result but, after stripping out the effect of exchange rates, operating profit was still up 3%. Revenues rose 8% to $11.8bn and increased by 5% on an organic basis.
“Despite significant additional cost pressures in 2007, our Company posted another year of strong growth,” said David Mackay, Kellogg’s CEO.
Sales in North America rose 5% thanks to growing demand for its cereal and snack products.
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By GlobalDataInternationally, where Kellogg generates a third of its turnover, the company’s sales also rose by 5%. Kellogg’s Latin American business matched its performance in 2006, with sales up 9%.
In Europe, Kellogg’s biggest region outside North America, sales jumped 15%. The company flagged rising cereals and snack sales in the UK, its largest market on the continent.
The company, however, said a weak performance in Australia had pulled down the rest of the business in Asia-Pacific. Sales dipped by under 1% during 2007.
The Asia Pacific business posted slightly lower internal sales, decreasing less than 1% for the full year. Internal sales growth was up 2% in the fourth quarter, due to strong performances in Japan, South Korea, India and South Africa, offset by continued weakness in Australia.
