You are here
Kellogg Co. reported sales, operating profit and earnings growth despite increased costs and significant investment in future growth for its second quarter.
Reported net earnings for the quarter were $259 million, a 9-percent increase from last year's $237.4 million. Earnings were 62 cents per diluted share, also a 9-percent increase.
Each of the company's segments posted sales growth in existing products, plus successful innovation and strong brand-building programs.
"Business momentum continued in the second quarter and we again capitalized on this strength through increased investment in future growth," said Jim Jenness, Kellogg's chairman and CEO.
Reported net sales increased by 8 percent to $2.6 billion in the quarter. Internal net sales growth, which excludes the effect of foreign-currency translation, was 7 percent and built on growth of 5 percent in the second quarter of last year.
Kellogg North America posted internal net sales growth of 8 percent. North America Retail Cereal internal net sales increased by 10 percent as a result of successful brand-building campaigns and new product introductions across the business.
North America Retail Snacks also posted internal sales growth of 8 percent as a result of growth in the toaster pastries, crackers, and wholesome snacks businesses. The cookies business posted a low single-digit decrease in net sales compared to last year's second quarter, when there were a significant number of new products shipped.
The North America Frozen and Specialty Channels businesses collectively posted internal sales growth of 5 percent, driven by high single-digit sales growth in the Eggo brand and the Food-Away-From-Home businesses.