Kellogg Company surpassed market expectations for quarterly sales, as demand for the Corn Flakes maker's cereals and snacks held strong even as inflation pinched household budgets.
The company's net sales rose 12% to $3.83 billion (€3.56 billion) in the fourth quarter ended December 31.
Analysts had expected revenue of $3.66 billion (€3.4 billion), based on Refinitiv IBES data.
The Pringles maker, which is in the process of a three-way break-up of its business, also said it has decided to keep its plant-based business, which represents 2% of net sales, in-house. Kellogg had last June announced plans to explore strategic options for its profitable MorningStar Farms business.
Americans have so far taken price hikes for snacks and breakfast cereals in stride even as decades-high inflation forces consumers to dial back spending, resulting in increasingly tight household budgets.
'Focus And Determination'
"Reflecting on 2022, I could not be more proud of our organisation's focus and determination to work through challenges and deliver on our financial commitments," said Steve Cahillane, Kellogg Company's chairman and chief executive.
"Facing significant cost inflation, worldwide bottlenecks and shortages, and a significant inventory rebuild in North America cereal following last year's fire and strike, the team executed with grit and agility to deliver another year of better-than-expected results, while at the same time making progress toward our planned transformation."
Callihane added that the group enters 2023, "strong momentum around the world", and is optimistic that the pending separation of the business can create value for shareholders.
News by Reuters, edited by ESM – your source for the latest A Brands news. Click subscribe to sign up to ESM: European Supermarket Magazine.