US cereal giant Kellogg has raised its full-year guidance on the back of “strong” third-quarter sales and earnings growth.
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Kellogg said net earnings totalled US$361m during the quarter, up 6% year-on-year, despite a slight drop in sales. Net sales were $3.3bn, down 0.3% on last year.
Kellogg CEO David Mackay emphasised that, while the economic environment had placed “significant pressure” on consumers, it also prompted Kellogg to “build and even stronger company for the future”.
“We are aggressively pursuing productivity initiatives, as well as taking advantage of media deflation and efficiency programs to invest even more back into advertising to further drive the long-term health of our brands,” Mackay said.
Looking to the full-year, Kellogg reaffirmed internal sales growth guidance of 3-4% and said it anticipates gross margin expansion of around 100 basis points.
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By GlobalDataKellogg also raised guidance for 2009 internal operating profit growth to a range of 8-10%.
Kellogg added that it is well-positioned to deliver another year of “strong growth” in 2010. For 2010, Kellogg forecast sales growth of 2-3% an internal operating profit growth in the high single-digits.
Click here for the full press release, or check back later for just-food’s insight into Kellogg’s performance.
