Kellogg’s full-year sales and profits have again been hit by weakness in its domestic arm.
Reported net profit fell 2.9% in 2015 to US$614m. On a comparable basis – which excludes factors like restructuring costs and one-off items – net income fell 8.4% to US$1.3bn.
Reported operating income for the group increased 6.6% to US$1.1bn. However, on a comparable basis, it was down by 8.5% to US$1.9bn.
Reported group net sales fell 7.2% to $13.52bn. On a comparable basis they fell 6.3% to $13.47bn
CEO John Bryant, however, insisted 2015 results “met or exceeded initial expectations”.
“We saw good growth in many of our businesses, and importantly, trends continued to improve in the US cereal business. We’re very pleased with the foundation that we’ve built. We are committed to achieving our long-term goals for growth in 2016, supported by our increasing momentum and unprecedented productivity programs.”
FY results by division
North America: Reported net sales: Down 4.3% for full year. Currency-neutral comparable net sales down 1.6% for full year.
- US Morning Foods comparable net sales: Down 1.6% for full year. Up 1.5% for Q4 on “improving trends in US cereal business”.
- US Snacks comparable net sales: Down 1.6% for full year. Down 1.9% for Q4.
- US Specialty Channels comparable net sales: Up 0.7% for full year. Up 1.5% for Q4.
- North America Other currency-neutral comparable net sales: Decline of 2% in Q4 and 3.2% in full year. This was driven by a decline in trade inventory due to a shift to new packaging in the MorningStar Farms business and results from the Kashi business.
- Latin America currency-neutral comparable net sales: Up 45.3% in Q4 and 24.6% for full year.
- Europe currency-neutral comparable net sales: Up 1.6% in Q4 and down by 0.6% for the full year. Snacks business growth lifted results in the quarter.
- Asia Pacific currency-neutral comparable net sales: Up 3.3% in Q4 and an increase of 4% for the full year, driven by “strong rates of growth” in Asia.