Kellanova Sales Continue to Slide While Awaiting Approval of Mars Acquisition
While it awaits European Commission approval of its acquisition by Mars Inc., Kellanova reported mixed results in its third quarter financial report today (Oct. 30).
Company-wide sales increased a hair under 1%, to $3.26 billion, but organic sales slid by half a percent. Operating profit dipped similarly, and earnings per share were down to 88 cents from $1.05.
Kellanova’s sales “benefited from sustained volume growth and price realization in our noodles businesses in Africa, but were offset by the impact of lingering softness in snacks, cereal, and frozen foods categories elsewhere.”
The sales declines were nearly identical across most geographies. North America sales decreased by 3% during the third quarter but operating profit increased 1%. Sales in Europe and Latin America each dipped 1%. Asia Pacific, Middle East and Africa, however, saw sales increase by 14%, led by both volume growth and last year's currency-influenced price increases.
While the U.S. Securities and Exchange Commission approved the $36 billion proposed acquisition on June 25, the European Commission’s antitrust body has really scrutinized the deal, and it set itself a Dec. 19 deadline for a final decision.
About the Author
Dave Fusaro
Editor in Chief
Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.