- H1 reported sales, profits down
- Currency, Project K costs weigh heavy on Q2 bottom line
Kellogg today (4 August) reported underlying second-quarter sales that beat analyst forecasts and insisted trends in its US cereal business were improving – but the Special K maker posted declining half-year revenue and profits.
Comparable net sales hit US$3.48bn in the quarter that finished on 4 July. According to Bloomberg, analysts had estimated sales would reach $3.46bn.
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Kellogg, which has seen its domestic cereal business come under pressure in recent quarters, said it had seen an "improvement" in its "US cereal share trends in the second quarter".
However, for the first half of the financial year, Kellogg reported net income fell 35.9% to US$450m. Comparable net income, which excludes factors like the impact of Kellogg's Project K restructuring programme and a re-measurement of profits from Venezuela, fell 8% to $677m.
Reported operating income decreased 26.3% to $796m and comparable operating income fell 8.2% to $1.03bn.
Reported net sales declined 5% to US$7.05bn. On a comparable basis fell 5.2% to $7.03bn.
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By GlobalDataOperating profit fell 11.6% to $412m. Comparable operating profit dropped 10.5% to $507m.
Net sales were down fell 5.1% to $3.5bn, largely as a result of negative currency translation. On a comparable basis, net sales declined 5.4%. Currency-neutral net sales inched up 0.1%.
