- Kellogg reported growth in revenue of 8.7% in Q2 2022 on an annual basis and a growth of 12.2% on an organic basis
- Kellogg reported a GAAP diluted EPS of $0.95, down 14.4% YoY
- The management has raised its full-year earnings guidance
On August 4, 2022, Kellogg reported Q2 sales of $3.86 billion (a growth of 8.7% year-over-year, +12.2% on an organic basis) on adjusted diluted earnings per share (EPS) of $1.18. Kellogg announced on June 21, 2022, that it would split into three independent companies, with each company focusing on cereals, snacks, and plant-based foods.
Summary: Kellogg’s Q2 2022 revenues grew by 8.7% (+12.2% on an organic basis) as compared to the same period in 2021. Kellogg reports its revenues across four segments: North America, Europe, Latin America, and Asia Pacific, Middle East, and Africa (AMEA).
- North America: Net sales were up 11.7% YoY on a reported basis and up 12.2% YoY on an organic basis, due to price/mix growth and growth in sales volume of snacks and cereals.
- Europe: Net sales were down 3.2% YoY on a reported basis and up 7.7% YoY on an organic basis, due to adverse foreign currency translation which was slightly offset by price/mix and growth in sales of snacks and cereals.
- Latin America: Net sales were up 8.3% YoY on a reported basis and up 9% YoY on an organic basis, due to a price/mix and growth in sales of snacks but was slightly offset by adverse foreign currency translation.
- Asia Pacific, Middle East, and Africa (AMEA): Net sales were up 11.2% YoY on a reported basis and up 18.4% YoY on an organic basis, due to price/mix and growth in sales of snacks, noodles, and cereal which was slightly offset by adverse foreign currency translation.
Guidance: The management has provided the following guidance for the full year 2022:
- Net Sales: the management raised its organic net sales growth to 7-8%, from its prior guidance of approximately 4%.
- Operating Profit: the management raised its adjusted operating profit growth to 4-5% on a currency-neutral basis, from its prior guidance of 1-2%.
- EPS: the management raised its adjusted earnings per share growth to approximately 2% on a currency-neutral basis, from its prior guidance of 1-2%.
- Cash Flow: the management expects cash flow to be approximately $1.2 billion, up from its prior guidance of $1.1-1.2 billion.