Kellogg beat Wall Street expectations for quarterly sales and profit on Thursday, boosting the food maker's shares 12 per cent as investments in marketing and product development drove higher demand for snacks and frozen food in North America.
Kellogg, which makes Pringles, Pop-Tarts, Eggo Waffles and a wide range of breakfast cereals including Corn Flakes, has been spending more on advertising and developing new products to suit changing consumer preferences for healthier food and smaller portions.
Second quarter
Net sales from North America, which accounts for nearly two-thirds of Kellogg's revenue, rose 1 per cent in the second quarter to June 29th. The North America unit has not grown sales by this much since the first quarter of 2013, according to J.P.Morgan analyst Ken Goldman.
Total net sales increased 3 per cent to $3.46 billion (€3.12 billion), beating the average analyst estimate of $3.41 billion. On an organic basis, excluding acquisitions, divestitures and foreign exchange impact, sales rose 2.3 per cent.
Excluding items, the company earned 99 cents per share, beating expectations of 92 cents. – Reuters
