Kellogg Sales Edge Up, But Profits Down

Feb. 11, 2022
Kellogg Co. reported higher organic net sales but lower profit for both the fourth fiscal quarter and the full year compared with last year.

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%.

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