US – American multinational food manufacturing company, Kellogg is upbeat about its full-year results after experiencing every successful first quarter.
The company recorded a 5.1% net sales increase in the first quarter, following a strong performance by its cereals range and Pringles brand, particularly in Europe and the AMEA region.
The company posted net sales of US$3.58 billion for the quarter, compared to US$3.41 billion the same time last year; witnessing strong growth across all regions and global categories.
The owner of Crunchy Nut and Frosted Flakes revealed that its operating profit for the three months ending March 31st grew by 2.7% to US$472 million.
Kellogg says elevated demand for packaged food consumed at home more than offset softness in its away-from-home channels and on-the-go occasions.
The company further noted that sales through retail channels remained strong, despite a strong pandemic-related surge last year.
E-commerce continued its exemplary performance, delivering strong growth for the quarter, as more consumers sought to purchase most of their products online.
Consumption of Eggo frozen breakfast products accelerated nearly 17% in 2020 (+2% from 2019) leaving the company “very tight on capacity,” while the Morningstar Farms, known for its plant-based breakfast meat products, generated the strongest growth within its frozen foods business.
Regionally, Kellogg’s Europe division reported a net sales increase of 10%, with sustained strong momentum for its Pringles brand across the region and continued elevation of cereal sales.
The Asia Pacific, Middle East and Africa (“AMEA”) unit, saw net sales rise by 14%, driven by growth across cereal, snacks and noodles.
Growth in the Americas was however not as excellent as the other two regions. North America only managed a 2% growth while in Latin America, Kellogg’s net sales increased by 4% respectively.
Snack growth accelerated particularly in Brazil where local production and a new distributor benefited its Pringles brand.
“The quarter featured continued momentum in major brands and categories, accelerated growth in emerging markets, and effective management of cost pressures through productivity and revenue growth management,” said Kellogg Company chairman and CEO, Steve Cahillane.
“This strong start to the year enables us to raise our full-year financial outlook, and underscores confidence in our ability to sustain balanced financial delivery.”
As a result of the strong growth experienced in Q1, the company expects to achieve flat year-on-year growth, up from its previous guidance of a decline of approximately 1%.
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