Kellogg Company K reported a first-quarter earnings per share and sales beat Thursday, confirmed its full-year guidance for the base business and updated its financial guidance to add recently consolidated West Africa results.
What Happened
Kellogg reported $3.4 billion in revenue and a diluted EPS of $1.27 per share against consensus estimates of $3.3 billion in revenue and EPS of $1.08. Net sales increased 5 percent year-over-year while operating profit of $510 million represented an 82-percent increase. The rise in operating profit was driven by productivity savings, higher net sales, significantly lower restructuring charges and favorable mark-to-market impacts, according to Kellogg.
Why It's Important
Kellogg's EPS in Q1 showed a strong year-over-year increase. "We delivered a strong first quarter," Chairman and CEO Steve Cahillane said in a statement.
The company's net sales, operating profit and EPS all showed year-over-year growth, and Kellogg is on track to meet its targets for the full year, Cahillane said.
What's Next
Kellogg said it's is expanding its business partnerships with Tolaram in West Africa and investing $420 million to add to its joint-venture equity interests.
Expansion in emerging markets is an important element of Kellogg's strategy, Cahillane said.
The food manufacturer expects 3-4 percent growth in net sales on a currency-neutral basis in 2018 and an increase of 9-11 percent in adjusted EPS.
Kellogg shares were up 2.24 percent at $57.92 at the time of publication Thursday.
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