Kellogg gave a rosier sales outlook for the full year, as higher prices in North America and strong international demand help the cereal maker overcome rising supply chain costs.
The company behind Fruit Loops cereal and Eggo waffles now expects organic net sales to grow by 2-3 per cent year on year, up from a previous estimate that revenues would be flat to up 1 per cent.
Kellogg reaffirmed its guidance for earnings and cash flow with higher sales expected to offset higher costs.
Consumer goods companies have been raising prices and taking other actions such as smaller packaging to mitigate the impact of higher costs related to freight, commodities and wages. Oreo maker Mondelez this week raised its sales guidance as it reported forecast-beating revenues for the third quarter, a sign that demand was resilient despite higher prices.
Steve Cahillane, Kellogg’s chief executive, said the company faced “an extremely difficult operating environment, marked by economy-wide bottlenecks and shortages and high cost inflation”.
“These business conditions do not get any easier in the fourth quarter, especially with the added challenge of a current labour disruption,” Cahillane added. “However, our underlying business momentum remains strong, particularly for our biggest snacking and frozen foods brands, and for our businesses in emerging markets.”
Workers at Kellogg’s US cereal plants have been on strike since October 5. The union representing about 1,400 employees at four factories rejected the company’s newest offer on Wednesday night, extending months-long negotiations over a labour agreement.
Kellogg’s net sales hit $3.62bn in the three months to October 2, a gain of 5.6 per cent year on year and higher than analysts’ estimate of $3.54bn. In North America, net sales were roughly flat, as lower volumes attributed to supply disruptions and a strong year-ago comparison offset positive price/mix.
The Michigan-based company earned $1.09 per share on an adjusted basis, which also beat a consensus forecast of 93 cents.
from WordPress https://ift.tt/3mKwvEb
via IFTTT
ไม่มีความคิดเห็น:
แสดงความคิดเห็น