Kellogg (K, $63.10) beats Q2 earnings and sales expectations

Kellogg Co. beat analysts’ expectations on its second quarter sales and earnings.

Excluding items, the food manufacturing company earned 99 cents per share, surpassing analysts’ expectations of 92 cents.

However, the company’s overall net income plunged -52% year-over-year to $286 million, largely owing to  restructuring and divestment costs and a lower tax rate in the prior-year period. Kellogg sold some of its brands ( including Keebler biscuits) for $1.3 billion in April, and announced plans in May and June to restructure its operations in Europe and North America. Higher input costs and a strong dollar also weighed on profits.

Kellogg’s total net sales increased +3% year-over-year to $3.46 billion, beating the average analyst estimate of $3.41 billion, (based on IBES data from Refinitiv). On an organic basis, excluding acquisitions, divestitures and foreign exchange effect, sales climbed +2.3%.

North American net sales, which accounts for nearly two-thirds of Kellogg's overall revenue, rose 1% in the quarter.

The company experienced a +23 percent increase in sales from the its Asia, Middle East and Africa unit.