The Kellogg Company has posted organic net sales growth of 11.5% in its full-year results, exceeding its “twice-raised guidance”.
On a reported basis, net sales increased by 8%, driven by double-digit price/mix growth across all of the company’s regions, which more than offset a “modest” decline in volume and adverse foreign currency translation. Meanwhile, reported net sales for the fourth quarter increased by 12% year on year.
The company also announced that it has decided to retain its plant-based business, which represents 2% of net sales, after considering spinning it off.
Last June, Kellogg announced that it planned to split into three, spinning off its North American cereal and plant-based foods businesses. It continues to work towards separating the regional cereal operations.
Kellogg chairman and CEO, Steve Cahillane, said: “Facing significant cost inflation, worldwide bottlenecks and shortages, and a significant inventory rebuild in North America cereal following last year’s fire and strike, the team executed with grit and agility to deliver another year of better-than-expected results, while at the same time making progress toward our planned transformation”.
He added: “We enter 2023 in solid financial condition with strong momentum around the world. And we remain as convinced as ever that the pending separation of our company will create value for all stakeholders.”
The company forecast organic sales growth of 5% to 7% for its 2023 full-year guidance.
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