Cereal and convenience foods firm Kellogg Company said it has reported strong sales and earnings growth ahead of expectations for the second quarter, despite the demanding cost environment facing the entire industry.
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Reported net earnings for the quarter were US$266.5m, a 3% increase from last year’s $259.0m, while reported diluted net earnings per share were $0.67, an 8% increase from last year’s $0.62 per share. The company’s net sales increased by 7% to $2.77bn during the quarter, compared to the same period last year.
“The combination of our focused strategy, good investment decisions and top-line growth remain the key enablers of our strong earnings performance,” said Jim Jenness, Kellogg’s chairman and chief executive officer.
“As we look at the business, our brand equities are strong, our innovation is working, and we continue to invest for the long term health of the business, all of which gives us continued confidence in the year.”
Kellogg still expects full-year net earnings to be in a range of $2.45-2.49 per share, including approximately $0.15 per share of up-front costs and stock option expense of $0.10 per share.
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By GlobalDataJenness added: “We continue to have confidence in the strength of our business model, in spite of the input cost outlook. The strong results this quarter are a testament to the hard work of all the Kellogg employees around the world. Our confidence continues that this will be another year of sustainable, dependable growth.”
