CEO John Bryant said growth from the company’s Asian, Latin American and European Snack businesses, as well as “improving trends” in North America led to the sales numbers.
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Sales at each corporations have shrunk in the United States due to a rising choice for much less processed meals and cooked…
Among the recent Special K cereal line extensions are gluten-free and protein varieties.
Kellogg said it began testing zero-based budgeting in parts of its business in 2014 and will roll it out across its North American operations later this year, followed by its global divisions. Kellogg is also working on making its Kashi cereals without genetically modified organisms.
Kellogg Co., the world’s largest cereal maker, posted second-quarter sales that topped analysts’ estimates after snacks such as Pringles helped make up for moribund demand for breakfast foods. He said Kashi cereals had been losing distribution as stores stopped carrying certain varieties. In addition, Kellogg Company announced that due to continued strong productivity, progress with Project K and zero-based budgeting, and the year-over-year sales momentum seen in 2015, it expects that it will achieve its long-term targets for currency-neutral comparable net sales and operating profit growth in 2016. Kellogg, like its rivals, said its numbers were hurt by the dollar’s strength, which reduces the value of overseas sales. On that basis, sales were flat at $3.7 billion.
Battle Creek, Mich.-based Kellogg and other big U.S. food companies have been grappling with consumers’ shifting tastes for foods perceived as fresher and healthier.
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Analysts on average had expected earnings of 92 cents per share on revenue of $3.47 billion, according to Thomson Reuters I/B/E/S. Excluding restructuring-related expenses, negative impact related to a remeasuring of its Venezuela business and other items, per-share earnings fell to 92 cents from $1.02.
