Kellogg, the world’s largest cereal maker, has seen rising costs hit profits during the third quarter of the year.
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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.”
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By GlobalDataOn 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%.
