MW WK Kellogg's profit crushes estimates but sales fall short in challenging market

By Ciara Linnane

Sales hit by declining volumes and the weak Canadian dollar

WK Kellogg Co.'s stock soared 4% early Tuesday, after the breakfast cereal company's fourth-quarter adjusted profit swept past estimates and offset a sales miss.

Battle Creek, Michigan-based Kellogg (KLG) had net income of $19 million, or 21 cents a share, for the quarter, up from $15 million, or 18 cents a share, in the year-earlier period. Adjusted for one-time items, it had EPS of 42 cents, well ahead of the 25-cent FactSet consensus.

Sales fell 1.8% to $640 million from $651 million, below the $645 million FactSet consensus.

The sales decline came as price/mix increased 3.8% and volume fell 5.6%. That was mostly due to the challenging business environment and the unfavorable impact of foreign exchange translation, notably the weakening of the Canadian dollar.

The higher net income was due to improved productivity and reduced waste within the company's supply chain operations, the company said in a statement.

The company is now expecting an organic sales decline of about 1% in 2025. Organic sales exclude the impact of currency and acquisitions. The guidance also excludes any potential impact from President Trump's planned tariffs on goods from Mexico and Canada.

The stock has gained 31.2% in the last 12 months, while the S&P 500 SPX has gained 20.7%.

-Ciara Linnane

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February 11, 2025 08:27 ET (13:27 GMT)

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