Higher Product Prices Prop Up Kellogg

Aug. 5, 2022
Consumer loyalty in the face of higher prices helped Kellogg Co. show good results for the most recent quarter.

Consumer loyalty in the face of higher prices helped Kellogg Co. show good results for the most recent quarter.

Overall net sales for the quarter ending July 2 were up 8.7%, to $3.86 billion, compared with the same period last year. In the North America segment, sales were up 12% year-over-year, to $2.25 billion. Overall operating profit was down 18%, but when currency fluctuations and other costs are taken into account, adjusted operating profit increased 10%. Profit for the North America segment went up 5.2%, to $382 million.

The good results came about in spite of Kellogg charging an average of 14% more for its products during the quarter. Those increases helped buoy sales numbers despite overall sales volume declining 1.5%, a situation Kellogg blamed in part on shortfalls in its cereal inventory.

In a federal filing, Kellogg attributed the good results to its higher prices, a recovery from last year’s strike of four U.S. cereal plants, and 16% sales growth in the snacks segment. The growth in snacks is encouraging news for Kellogg as it prepares to break into three companies, one of them devoted to snacks.

Sponsored Recommendations

Learn About: Micro Motion™ 4700 Config I/O Coriolis Transmitter

An Advanced Transmitter that Expands Connectivity

Micro Motion™ G-Series Coriolis Flow and Density Meter

Micro Motion G-Series: market-leading compact design featuring advanced process diagnostic capability.

Embracing Sustainability using Advanced Measurement Instrumentation

A practical guide to greeningyour brewing operationsusing advanced measurementinstrumentation.

Get Hands-On Training in Emerson's Interactive Plant Environment

Enhance the training experience and increase retention by training hands-on in Emerson's Interactive Plant Environment. Build skills here so you have them where and when it matters...