Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Resilient demand for snacks helps Kellogg raise annual forecasts

05/06/2021 | 11:20am EDT
The company logo and ticker symbol for The Kellogg Company, is displayed on a screen on the floor of the NYSE in New York

(Reuters) -Kellogg Co raised its annual forecasts on Thursday after posting better-than-expected revenue and profit, signaling that the pandemic-induced surge in demand for its cereals and snacks has not weakened even as the U.S. economy reopens.

Fresh curbs in several parts of the world, including France, the United Kingdom and parts of Asia early this year have also helped demand as consumers stuck at home indulged in snacks.

Sales grew 10% in Europe and about 2% in North America, its biggest market, sending shares of Kellogg up 7%.

The company's forecast raise came at a time when its peers including Kraft Heinz and Mondelez International Inc have flagged a hit to earnings from higher costs for sugar, wheat and soy as well as freight.

Kellogg said its increased forecast takes into account the higher costs, mainly thanks to better pricing of its products.

Known for its Corn Flakes and Honey Loops cereals, Kellogg projected full-year organic net sales to be nearly flat, compared to prior estimate of about 1% decline.

It also expects adjusted full-year profit per share on a currency-neutral basis to rise by about 1% to 2%, compared to its previous projection of about 1% rise.

"We're expecting growth in emerging markets to sustain, maybe not at the double-digit rates that we saw in quarter 1," Chief Financial Officer Amit Banati told investors.

Net sales rose to $3.58 billion in the quarter ended April 3 from $3.41 billion a year earlier. Analysts were expecting sales of $3.38 billion, according to IBES Refinitiv.

Excluding items, Kellogg earned $1.11 per share, beating analysts' average estimate of 96 cents per share.

(Reporting by Mehr Bedi in Bengaluru; Editing by Shounak Dasgupta and Arun Koyyur)

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
CORN FUTURES (C) - CBR (FLOOR)/C1 -2.07% 684.5 End-of-day quote.41.43%
MONDELEZ INTERNATIONAL, INC. 0.24% 63.78 Delayed Quote.9.08%
S&P GSCI CORN INDEX -1.37% 519.9174 Delayed Quote.31.92%
THE KRAFT HEINZ COMPANY 1.09% 43.42 Delayed Quote.25.27%
WHEAT FUTURES (W) - CBR (FLOOR)/C1 -0.44% 680.75 End-of-day quote.6.28%
Latest news "Economy & Forex"
02:08aGas pipe explosion kills 11 in central Chinese city, CCTV reports
02:00aWith Trump gone, NATO wages war on climate threat
01:49aGPSA UKRAINE : Empowering civil society and journalists in oversight and promotion of effective anti- - p172392
01:05aChina reports 34 new coronavirus cases on June 12
06/12Exclusive-Toshiba's No.2 shareholder calls for immediate resignation of board chair, 3 directors
06/12Press Conference - G7 Carbis Bay, United Kingdom
06/12DEPARTMENT OF PRIME MINISTER AND CABINET AUSá : Joint Statement by President Biden, Prime Minister Johnson and Prime Minister Morrison
06/12EXCLUSIVE : 3d letter says troubling that nagayama remains silent about report, has failed to accept responsibility for the misconduct that occurred under his oversight
06/12EXCLUSIVE : 3d letter says board chair nagayama ultimately responsible for toshiba’s recent governance failures
06/12EXCLUSIVE : 3d letter says "please serve interest of company by resigning from your directorships immediately and allow co to begin to rebuild trust among its stakeholders"
Latest news "Economy & Forex"