Kellogg Company K reported second-quarter FY23 organic sales growth of 7.1% year-on-year to $4.14 billion, beating the analyst consensus of $4.05 billion.
Adjusted EPS of $1.25 beat the analyst consensus of $1.11.
Kellogg North America's sales increased 3%, Europe grew 12%, Latin America's sales gained 17%, and Asia Pacific, Middle East, and Africa's (AMEA) sales fell 3%.
Selling, general and administrative expenses rose 13.2% Y/Y to $824 million.
Operating margin was 12.6%, and operating income for the quarter increased 22.7% to $509 million.
The company's reported gross margin expanded 340 basis points to 32.9%, while the adjusted gross margin expanded 130 basis points to 33.7%.
Kellogg held $308 million in cash and equivalents as of July 1, 2023, and generated an operating cash flow of $644 million year-to-date.
The company continues to progress towards its planned separation of its North America cereal business, which is expected to be completed during the fourth quarter.
Outlook: Kellogg revised FY23 organic net sales growth outlook to about 7% from 6% - 7% previously.
Kellogg sees adjusted-basis EPS to decline (1)% to (2)% on a currency-neutral basis, versus prior guidance of approximately (1)% to (3)%.
Price Action: K shares are trading lower by 0.18% at $66.52 on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
