- Kellogg Co (NYSE:K) reported second-quarter FY21 net sales growth of 2.6% year-on-year, to $3.55 billion, beating the analyst consensus of $3.41 billion.
- Adjusted EPS of $1.14 beat the analyst consensus of $1.02.
- Kellogg North America's sales decreased by 7%, Europe increased 13%, Latin America sales gained 19%, Asia Pacific, Middle East, and Africa's sales jumped 24%.
- Selling, general and administrative expenses rose 4.2% Y/Y to $720 million.
- The operating margin was 14.2%, and operating income for the quarter declining marginally to $504 million. The reported gross margin was flat at 34.5%, while the adjusted gross margin contracted 160 basis points to 34.2%.
- Kellogg held $395 million in cash and equivalents as of July 3, 2021, and generated an operating cash flow of $687 million. Net debt was $7.2 billion as of July 3, 2021.
- "We delivered these results amidst a challenging business environment that included pervasive shortages of materials, freight, and labor, and accompanying cost inflation," said Chairman and CEO Steve Cahillane.
- Outlook: Kellogg affirmed its FY21 guidance on operating profit, cash flow, and 1%-2% currency-neutral adjusted EPS growth.
- It sees organic net sales growth of 0-1% in 2021 (prior flat).
- Price action: K shares traded higher by 0.37% at $62.25 premarket on the last check Thursday.
- Photo by Stefano Ferrario from Pixabay
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