By Dean Seal
Kellanova recorded a big jump in profit during the fourth quarter in part from declining costs, even as unfavorable foreign currency translation dented the top line.
The maker of Pop-Tarts and Rice Krispies Treats posted a profit of $365 million, or $1.04 a share, compared with $27 million, or 8 cents a share, in the same quarter a year ago.
Stripping out one-time items, currency-neutral adjusted earnings were 93 cents a share. Analysts polled by FactSet had been expecting 83 cents a share.
Sales slipped 1.6% to $3.12 billion, clearing analyst estimates for $3.12 billion. The decline was driven by negative foreign currency effects, said the company.
On an organic basis, the top line rose 7% from higher volumes and prices.
Kellanova managed to bring down its cost of goods sold and overhead costs to boost profits. The quarter also benefited from substantially fewer one-time costs.
The company said it wouldn't provide guidance while its nearly $30 billion merger with Mars remains pending.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
February 06, 2025 08:44 ET (13:44 GMT)
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