Amid strong second-quarter results, Kellanova raises its 2024 organic net sales guidance.
Kellanova, known for its global snacking business spun off from Kellogg last year, now boasts a portfolio of snacks, frozen food, and cereal brands like Pringles, Eggo, Pop-Tarts, and Nutri-Grain.
Despite reporting a 4.7% year-on-year decline, Kellanova’s second-quarter net sales reached $3.19bn, surpassing analysts’ expectations and prompting an upward revision of its organic net sales growth forecast to 3.5% or higher for the year.
The company also adjusted its earnings per share forecast to $3.65 to $3.75 from $3.55 to $3.65, citing improved top-line growth and volume increases in key markets, particularly driven by the success of its Pringles brand.
CEO Steve Callahane highlighted the return to volume growth in key regions and increased brand-building investment as key factors supporting Kellanova’s growth.
Despite challenges such as adverse foreign-currency translation and last year’s Russia divestiture, Kellanova saw a 4% increase in net sales on an organic basis. Operating profit also rose by 18%, attributed in part to improved gross profit margin.
Operating profit in North America rose by 21%, while Europe experienced a 1% decline in organic net sales. Efforts to improve efficiency and productivity led to the decision to close factories in the US and UK earlier this year.
