Strong sales growth in North America has driven a 12% rise in quarterly profits at cereal giant Kellogg.
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The US-based group said today (29 October) that net income for the three months to 27 September reached US$342m, an increase of 12.1% from $302m a year earlier.
Kellogg saw net sales grow by 9.9% to $3.3bn. The company said “internal net sales”, which excludes the impact of currency fluctuations and acquisitions, rose 7%.
“The Kellogg business model and strategy continue to give us the ability to offset inflationary headwinds while hitting our targets and delivering sustainable, dependable performance in these very volatile times,” said CEO David Mackay.
In North America, Kellogg booked a 10% rise in sales to $2.16bn. The company’s retail cereal division saw internal net sales grow by 7%, while its snacks business saw sales climb 10% on the same basis. Kellogg’s frozen and speciality channels businesses saw sales rise 11%.
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By GlobalDataInternationally, Kellogg posted net sales growth of 9%, although growth slipped to 3% when measured on an internal basis.
Internal net sales climbed by 3% in Europe but dipped by 1% in Latin America due to the weak Mexican economy. Internal net sales in Asia Pacific rose 10%.
Kellogg’s third-quarter results led the company to forecast that its earnings per share would be “ closer to the high end of the previous guidance of $2.95 to $3.00 per share”.
The company said it also expects “mid single-digit internal sales and internal operating profit growth” for 2008.
