Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

Froot Loops maker WK Kellogg beats revenue estimates on higher prices

Published 07/05/2024, 11:15 pm
Updated 08/05/2024, 05:29 am
© Reuters. Kellogg's Corn Flakes, owned by Kellogg Company, are seen for sale in a store in Queens, New York City, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photo
K
-

(Reuters) - WK Kellogg Co beat Wall Street estimates for quarterly sales on Tuesday, as higher product prices offset pressure from slowing demand for the Froot Loops maker's ready-to-eat breakfast items and snacks.

Like other major brands in the packaged food market, the spun-off North American cereal business of Kellanova has been ramping up prices to shield its margins from an inflation-induced slowdown in consumer spending.

Its pricing rose by 6.3% in the reported quarter, driving volumes down 7%.

Kellanova had also posted better-than-expected quarterly sales and profit last week and maintained the 2024 forecast provided in August.

WK Kellogg reported sales of $707 million for the first quarter ended March 30, above analysts' average estimate of $697.8 million, according to LSEG data.

The Apple (NASDAQ:AAPL) Jacks cereal maker also reaffirmed its annual adjusted net sales growth range forecast at down 1% to up 1%.

It reported a net income of $33 million, or 37 cents per share, from $24 million, or 28 cents per share, a year earlier. Analysts were expecting a profit of 38 cents.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.