Breakfast cereal maker Kellogg Co raised annual forecasts and beat first-quarter sales and profit estimates on Thursday, helped by a sustained snacking boom that began during the pandemic but continues even as the US economy reopens.
Fresh restrictions in several parts of the world, including France, the United Kingdom and parts of Asia early this year has also fuelled demand for cereals, snacks and frozen foods as consumers staying indoors seek comfort in food.
Kellogg, which also makes Pringles, Cheez-Its and Pop-Tarts, projected full-year organic net sales to be about flat, compared to its previous estimate of a decline of about 1%.
In February of this year, the company posted a rare profit miss and forecast a decline in organic revenue growth for 2021, as demand for its breakfast cereals and snacks declined from the strong levels seen during last year's lockdowns.
Quarterly Report
Net sales rose to $3.58 billion in the quarter ended 3 April from $3.41 billion a year earlier. Analysts were expecting sales of $3.38 billion, according to IBES Refinitiv.
Net income attributable to the company climbed to $368 million, or $ 1.07 per share, from $347 million, or $1.01 per share, a year earlier.
Excluding items, Kellogg earned $1.11 per share, beating analysts' average estimate of 96 cents per share.
Last week, the company announced that its board of directors declared a dividend of $0.58 per share on the common stock of the company, payable on 15 June 2021, to share owners of record at the close of business on 1 June 2021.
