Shares in cereal and snacks giant Kellogg rose today (1 November) after the Special K and Pringles owner reported better-than-expected third-quarter earnings.
However, the US group still reported a slide in internal operating profit, which excludes the results from Pringles, the costs of integrating the business, disposals and foreign exchange.
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Kellogg booked net income of US$296m for the three months to 29 September. Diluted earnings per share was $0.82. According to a Thomson Reuters poll, Wall Street analysts were expecting diluted EPS of $0.80.
The company pointed to a “better-than-expected performance” from Pringles as a reason for the result. Kellogg shares were up 2.08% at $53.41 at 11:51 ET today.
That said, Kellogg revealed its internal operating profit fell 4.9% amid higher commodity costs, last month’s recall of Mini Wheat cereals and an increase in investment behind its brands.
Internal operating profit from Kellogg’s international business dropped 10.5% thanks to the spending on its brands in Asia and Latin America, as well as lower sales in Europe.
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By GlobalDataHowever, president and CEO John Bryant said: “We’re pleased with the improving trends in our underlying performance, which is in-line with our expectations and includes strong revenue growth in many of our businesses. We’re also pleased that the Pringles business performed better during the quarter than we had expected. While it’s early, we remain optimistic regarding the potential of this iconic brand.”
