Froot Loops maker WK Kellogg beats revenue estimates on higher prices

WK Kellogg Co

07/05/2024 14:11

May 7 (Reuters) - WK Kellogg Co  KLG.N  beat Wall Street
estimates for quarterly sales on Tuesday, as higher product
prices offset pressure from slowing demand for the Froot Loops
maker's ready-to-eat breakfast items and snacks. 
    Like other major brands in the packaged food market, the
spun-off North American cereal business of Kellanova  K.N  has
been ramping up prices to shield its margins from an
inflation-induced slowdown in consumer spending. 
    Its pricing rose by 6.3% in the reported quarter, driving
volumes down 7%.
    Kellanova had also posted better-than-expected quarterly
sales and profit last week and maintained the 2024 forecast
provided in August. 
    WK Kellogg reported sales of $707 million for the first
quarter ended March 30, above analysts' average estimate of
$697.8 million, according to LSEG data.
    The Apple Jacks cereal maker also reaffirmed its annual
adjusted net sales growth range forecast at down 1% to up 1%. 
    It reported a net income of $33 million, or 37 cents per
share, from $24 million, or 28 cents per share, a year earlier.
Analysts were expecting a profit of 38 cents.   

 (Reporting by Aatrayee Chatterjee in Bengaluru; Editing by
Devika Syamnath)
 ((aatrayee.chatterjee@thomsonreuters.com))