US cereal giant Kellogg today (4 February) posted a 1.7% drop in fourth-quarter earnings due to a fall in sales volumes.
The company said that profit fell to US$176m, or $0.46 a share, down from $179m, or $0.47 a share, in the comparable period of last year.
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After currency exchange, revenue fell 1% to $2.9bn and sales volumes dropped 1.4%. Including the positive impact of currency exchange, sales rose 2%, the company said.
Kellogg said lower commodity prices and the company’s K-Lean cost-cutting drive boosted its gross margin, which rose to 42.9% from 39.4% in the period.
In a bid to bolster sales volumes and drive long-term growth, the company invested heavily in marketing activities towards the tail end of the year.
Reported earnings for fiscal 2009 were $1.2bn, or $3.16 per share, an increase of 6% from full-year 2008’s earnings of $1.1bn, or $2.99 a share.
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