US cereal manufacturer Kellogg today (30 April) upped its full-year outlook after posting a 17% rise in first quarter profits on the back of a strong performance from its US retail snack business and international sales.
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Net income increased to US$321m, or $0.80 per share, from $274m, or $0.68 a share, in the comparable period of last year.
The food company, whose brands include Rice Krispies, Pop-Tarts, and Cornflakes, said net sales rose 8.6% to $2.96bn.
Kellogg North America posted net sales growth of 7%. US retail cereal posted sales growth of 4%, driven by brand building, innovation, and last year’s pricing increase, the company said. Sales at Kellogg’s US retail snacks business were up 11%, boosted by strength in cookies, crackers, fruit snacks, and “wholesome snacks”. North America frozen and specialty businesses posted net sales growth of 5%.
Internationally, Kellogg reported first quarter net sales growth of 12%, or 5% excluding the favourable effect of currency translation. The Latin American region posted 8% sales growth while net sales in Europe rose 6% sales in the Asia Pacific region declined 2%.
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By GlobalData“Last year’s momentum continued in the first quarter of 2007,” said chief executive David Mackay. “Importantly, we posted these positive results while following our business model and making considerable investment in our brands, and in future growth.”
Looking to the full year, Mackay said: “We continue to expect that we will post another strong year and our current momentum provides us with the opportunity to invest even more in future growth.”
Kellogg raised its full year profit guidance to $2.70-$2.74 a share, up from an original forecast of $2.68-$2.73 a share.
