Kellog's (K, $67.71) tops Q4 earnings expectations

Kellogg reported fourth-quarter earnings and sales that beat expectations, on strength in its snacks business.

The company’s fourth-quarter adjusted earnings of 94 cents a share handily topped analysts’ expectations of 85 cents.  Net sales of $3.8 billion also exceeded analysts’ estimates of $3.67 billion.

The company also shared initial financial forecasts for 2023, including organic net sales growth of 5% to 7% and adjusted earnings per share falling 2% to 4% on a currency-neutral basis.

Revenue in the North America segment was up +14.4% year-over-year to  $2,262 million. European segment fell -1.4% to $561 million due to unfavorable currency movements. Latin America sales grew +21.7% from the year-ago quarter to $296 million. Asia Pacific and the Middle East & Africa segment was $717 million, up +13.4% year over year.

For 2023, Kello projects organic net sales growth in the range of 5% to 7% and adjusted earnings per share decrease of -2% to -4% on a currency-neutral basis. “For simplicity reasons, this guidance assumes that the North America cereal business will remain in Kellogg Company for the full year, even though the plan is to spin it off before year end,” the company’s statement mentioned.