Kellogg (K) Reports Q1 Results Above Expectations

Kellogg Co. (NYSE:K) is famous for its wide variety of food. The company is best known for its breakfast cereals, but its entire portfolio is far more diverse. Kellogg sells frozen food, crackers, snacks, protein bars, and vegetarian burgers, among other products. The company says that its vision is to fulfill the nutritional needs of people across the globe. It is currently marketing its products to more than 180 countries (see 10 best consumer staples stocks).

Michigan-based Kellogg recently announced better-than-expected financial results for the first quarter and raised its guidance for the full year. The company reported earnings of $1.07 per share for the three months ended April 3, up from $1.01 per share in the comparable period of 2020. On an adjusted basis, the company earned $1.11 per share, easily topping the consensus forecast of 96 cents per share.

Revenue for the quarter came in at $3.584, slightly higher than $3.412 billion in the year-ago quarter. Analysts on average were expecting Kellogg to report revenue of $3.377 billion. The surge in revenue was mainly attributed to the elevated demand for its cereals and snacks, as a large number of people were still having meals at their homes due to the renewed lockdown restrictions.

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Speaking on the results, CEO Steve Cahillane said in a statement, “Amidst continued difficult circumstances, our organization executed exceptionally well in the first quarter and delivered very good results, both financially and in-market. 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.”

Looking forward, Kellogg expects its organic net sales for fiscal 2021 to be nearly flat on a year-over-year basis. Previously, the company was expecting its organic net sales to decline 1 percent.