Continued pressure in the North American cereal category has contributed to another sales and profit decline for Kellogg.
Reported net income for the nine months to 3 October fell 29.2% to US$655m. On a comparable basis – which excludes factors like restructuring costs and one-off items – they were down 9% to $978m.
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Operating profit on a reported basis fell 21.9% to $1.1bn. On a comparable basis fell 9.5% to $1.5bn.
Sales fell 6.4% and 6.2% respectively on a comparable and reported basis to $10.4bn.
The firm insisted it was seeing "improving trends" in the US cereal business. In the third quarter, Kellogg's US Morning Foods arm posted a currency-neutral comparable net sales decline of 2.6%. Its US frozen foods, Kashi and Canadian businesses posted a 3.4% decrease in currency-neutral comparable net sales.
Internationally for the quarter, Kellogg posted sales declines in Europe, Latin America and Asia Pacific.
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By GlobalDataOverall for the third quarter, sales on a reported and comparable basis were 8.5% down to $3.3bn, significantly impacted by foreign currency.
Kellogg reported an 8.4% drop in reported net profit to $205m and on a comparable basis, an 11.3% drop to $301m.
Operating profit on a reported basis fell 8.7% to $334m and fell 12.3 to $465m on a comparable basis.
Kellogg did however beat analyst estimates for earnings per share. Wall Street analysts predicted earnings of 83 cents per share. Kellogg reported EPS of 85 cents per share.
