US cereal giant Kellogg has recorded an increase in full-year profits, boosted by lower expenses, and despite a drop in sales.

For the year ended 1 January, the company earned US$1.24bn, an increase of 4% on the 2009 period. Operating profit dropped slightly to $1.99bn from $2bn in the prior-year.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Full-year sales declined by 1% to $12.40bn on both a reported and internal basis.

In North America, full-year reported net sales for 2010 slid 1% to $8.4bn, while the firm’s international division posted a 2% decline in reported net sales to $4bn.

“While 2010 had its challenges, we are taking steps to position the company for improved and long-term success,” John Bryant, Kellogg’s president and CEO, said. “Kellogg is a strong company with successful brands in attractive markets. We expect 2011 to continue to be a difficult operating environment, but we are confident that with the successful execution of our strategy we can achieve our 2011 goals and deliver long-term sustainable growth.”

See Also:

In the fourth quarter, profits increased to $185m from $176m a year earlier, while operating profits dropped 7% to $329m.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Sales in the quarter dropped 1% to $2.86m. The manufacturer attributed the decrease primarily due to the “continued competitive trends in the cereal category”.

Kellogg reaffirmed its 2011 guidance of currency-neutral full-year earnings per share growth in the low single-digit range. Assuming no foreign exchange impact, this implies earnings per share of $3.33 to $3.40. The company updated its internal net sales growth guidance from 3% to 4%.

Click here to view the full earnings release and click here for John Bryant’s comments on the outlook for Europe, the prospects for the US and innovation in cereal.