Battle Creek, MI-based Kellogg Co. (NYSE: K) reported stronger-than-expected second quarter 2021 results this week and confirmed their financial guidance for the full year.
Kellogg’s second quarter 2021 GAAP (“reported”) net sales increased 3% year-on-year, driven by favorable currency translation.
On an organic basis, which excludes the impact of currencies, the company’s net sales were roughly flat, as the impact of last year’s rising domestic demand in developed markets was offset by the dynamics of emerging markets, the recovery of non-country markets. domestic channels and positive price / mix.
- During the global COVID-19 pandemic and unprecedented operating environment, Kellogg continues to deliver well on its priorities of protecting the health and safety of our employees, providing food to market and helping our communities.
- Net sales increased on top of a particularly strong period the previous year, driven by double-digit growth in the company’s business in emerging markets.
- Around the world, the Kellogg has maintained momentum in many key brands, continuing to outperform consumption growth in their categories on a two-year compound annual growth basis.
- Despite a comparison with disproportionate operating leverage in the previous year’s quarter, Kellogg’s operating profit was roughly stable year-over-year as the company effectively managed the widespread challenges. supply chain and high cost inflation across the economy.
- Reflecting the underlying business momentum, Kellogg raised its full-year net sales outlook, while affirming its operating profit, earnings per share and cash flow guidance to reflect a business environment at higher costs.
Kellogg’s second quarter 2021 results are published on the company’s website. Materials include financial press release and tables, GAAP reconciliations, and presentation slides.