Kellogg Co. reported higher organic net sales but lower profit for both the fourth fiscal quarter and the full year compared with last year.
2022 was marked by a labor strike that affected all of Kellogg’s ready-to-eat cereal plants. But Kellogg managed to put up $14.07 billion in organic net sales for 2021, a 3.5% rise over 2020, and $3.5 billion in the fourth quarter, an increase of 5.2%. Organic net sales strip out the effects of currency fluctuations, acquisitions, divestitures, and an extra week that was figured into the 2020 calculations.
Adjusted operating profit, however, was down 12% for the quarter, to $361 million, and down 0.3% for the year, to $1.8 billion.
"As we've closed the books on fiscal year 2021, I could not be more proud of our organization’s focus and determination to work through challenges and deliver on our financial commitments," CEO Steve Cahillane said in a statement. "Facing significant cost inflation, worldwide bottlenecks and shortages, and even a labor strike at all of our U.S. cereal facilities in the fourth quarter, the team executed with agility to deliver another year of on-guidance results."
Kellogg predicts organic net sales growth of 3% in 2022, with operating profit up 1% to 2%.