Packaged food maker Kellogg said its snacking business Kellanova is expected to report full-year sales between $13.4 billion (€12.2 billion) and $13.6 billion (€12.3 billion) after Kellogg separates into two units at the end of the year.
Kellanova — which will house the Pringles, Cheez-It and Pop-Tarts snack brands among others — is also expected to report an annual adjusted profit between $3.55 and $3.65 per share, Kellogg said.
The business unit aims to focus on lifting its financial performance to a higher level and feature a portfolio inclined toward snacking with a global footprint and presence in fast-growing emerging markets.
In 2022, global snacks and emerging markets collectively accounted for about 80% of Kellanova's net sales.
The cereal business, WK Kellogg, which will be home to brands including Kellogg's and Froot Loops, is expected to post full-year net sales of $2.7 billion (€2.5 billion).
WK Kellogg aims to build on its portfolio of brands, such as Frosted Flakes, Special K, Raisin Bran, Frosted Mini-Wheats, Kashi, among others.
Following the separation, the unit will benefit from greater operational focus and 'fit-for-purpose' strategy and resource allocation, the company added.
It will integrate its strategy and execution across all three markets – US, Canada, Caribbean – and all retail channels for greater efficiency and agility.
The business also aims to modernise its supply chain by realigning its manufacturing network and introducing new technologies and automation.
Earlier this month, Kellogg forecast a smaller drop in annual profit than previously expected following multiple price hikes for its breakfast snacks and cereals.
Article by Reuters, additional reporting by ESM