U.S. Markets close in 2 hrs 11 mins

Free Research Report as Kellogg's Net Sales Rose 4.7%; EPS Soared 69%

Stock Monitor: Farmer Bros. Post Earnings Reporting

LONDON, UK / ACCESSWIRE / June 6, 2018 / If you want access to our free earnings report on Kellogg Co. (NYSE: K), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=K. The Company reported its first quarter fiscal 2018 operating and financial results on May 03, 2018. The maker of Corn Flakes and Fruit Loops' sales rose for the third consecutive quarter. Additionally, the Company updated its guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:


Active-Investors.com is currently working on the research report for Farmer Bros. Co. (NASDAQ: FARM), which also belongs to the Consumer Goods sector as the Company Kellogg. Do not miss out and become a member today for free to access this upcoming report at:


Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Kellogg most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:


Earnings Highlights and Summary

For the first quarter of the fiscal year 2018, Kellogg's GAAP net sales increased 4.7% to $3.40 billion compared to $3.25 billion in Q1 2017, attributed to a favorable currency translation, the acquisition of RXBAR, and an improved business delivery. On an organic basis, the Company's net sales increased 0.6%, which was the Company's best performance in several quarters, despite list-price adjustments and other impacts in US Snacks related to its transition from Direct Store Delivery system (DSD). Kellogg's revenue numbers exceeded analysts' estimates of $3.30 billion.

During Q1 2018, Kellogg's operating profit soared 81.7% to $510 million compared to $465 million in Q1 2017, driven by productivity savings and higher net sales, as well as significantly lower restructuring charges and favorable mark-to-market impacts. The Company's operating profit increased 5.1% on a currency-neutral adjusted basis, owing to the higher sales growth and strong productivity savings related to the Project K restructuring program.

For Q1 2018, Kellogg reported earnings of $444 million, or $1.27 per diluted share, compared to $266 million, or $0.75 per diluted share, in Q1 2017, driven by lower restructuring charges, favorable mark-to-market adjustments, favorable currency translations, a lower effective tax rate, and higher underlying business deliveries.

Kellogg's non-GAAP diluted earnings per share (EPS) jumped 11.1% to $1.19 compared to $1.07 in Q1 2017, attributed to higher business deliveries and a lower effective tax rate. The Company's earnings surpassed Wall Street's estimates of $1.08 per share.

Segment Results

Kellogg North America segment's net sales grew 1.8% to $2.33 billion on a reported basis in Q1 2018, due to the RXBAR acquisition and a favorable currency translation. Excluding these factors, the segment's net sales declined by less than 1% on an organic basis, reflecting the list-price adjustment and rationalization of stock-keeping units (SKU) related to the transition out of DSD in US Snacks. The segment's operating profit soared 49.7% to $399 million in Q1 2018.

During Q1 2018, Kellogg Europe segment recorded a growth in net sales of 14.4% to $587 million on a reported basis. The reported growth was additionally aided by a favorable currency translation while currency-neutral growth was driven by growth in snacks, with Pringles growing at a double-digit rate. The segment's operating profit increased 11.8% to $74 million on a reported basis, owing mainly to a favorable currency translation.

For Q1 2018, Kellogg Latin America segment posted net sales of $232 million, reflecting a growth of 5.3% on a reported basis, aided by a favorable currency translation and a return to growth on a currency-neutral basis. This currency-neutral net sales growth was led by a continued growth in Mexico, which grew sales and share in both cereal and Pringles, and by the Mercosur sub-region, where growth was driven by cereal, Pringles, and Parati cookies and crackers. The segment's operating profit fell 33.0% to $22 million on a reported basis.

Kellogg Asia/Pacific segment's net sales increased strongly by 11.0% to $252 million in Q1 2017, with a favorable currency translation adding to an acceleration in currency-neutral growth. This currency-neutral growth was driven by emerging-markets cereal and continued expansion of Pringles. The segment recorded a strong increase in operating profit of 25.6% to $27 million, related to lower restructuring charges and a favorable currency translation.


For the full fiscal year 2018, Kellogg is forecasting net sales growth of 5% to 7% overall on a currency-neutral basis. The Company is expecting earnings to be in the band of 9% to 11% on a currency-neutral basis.

Stock Performance Snapshot

June 05, 2018 - At Tuesday's closing bell, Kellogg's stock dropped 2.09%, ending the trading session at $63.27.

Volume traded for the day: 3.23 million shares, which was above the 3-month average volume of 2.91 million shares.

Stock performance in the last month – up 5.80%

After yesterday's close, Kellogg's market cap was at $22.14 billion.

Price to Earnings (P/E) ratio was at 15.71.

The stock has a dividend yield of 3.41%.

The stock is part of the Consumer Goods sector, categorized under the Processed & Packaged Goods industry.


Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.


The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.


A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.


This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.


For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors