Kellogg today (5 February) posted a rise in 2008 sales and earnings but trimmed its revenue target for 2009.
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The US-based cereals and snacks giant posted a 9% rise in reported net sales to US$12.8bn for the year to 3 January, helped in part by an extra selling week.
Kellogg said “internal net sales” – which strips out the impact of foreign exchange, acquisitions, and the extra week – rose 5%.
Reported net earnings were up 4% to $1.15bn, while annual earnings per share rose 8% to $2.99 against the company’s most recent estimate of $2.95-300.
“Kellogg delivered another year of sustainable and dependable results, despite significant cost pressures and the stress the economy is placing on consumers,” said CEO David Mackay.
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By GlobalDataHowever, Kellogg cut its 2009 sales forecast from a target of internal sales growth in the mid-single digits to 3-4%.
Mackay said: “We remain confident in our ability to deliver another year of sustainable and dependable performance. For 2009, we will focus on driving solid top-line growth as well as further cost-savings initiatives.”
Looking at Kellogg’s results in the fourth quarter of 2008, sales rose 5% to $2.93bn; internal net sales growth stood at 3%. Reported net earnings in the fourth quarter inched up from $176m, or $0.44 per diluted share a year ago, to $179m, or $0.47 a share, in 2008.
Kellogg said its fourth-quarter results included a negative impact from the ongoing peanut salmonella outbreak in the US. A clutch of Kellogg products have been caught up in the scare, which has been linked to one of the company’s suppliers, Peanut Corporation of America.
Kellogg said its fourth-quarter results include an “adverse effect” of six cents a share due to the salmonella outbreak and associated recalls.
