Breakfast cereal maker Kellogg has reported a 2.8% decline in fourth-quarter sales, hurt by the sale of its Keebler cookie business and other assets to Nutella maker Ferrero SpA.
Kellogg shares fell 5.6% in premarket trading.
Battle Creek, Michigan-based Kellogg said reported net sales fell to $3.22 billion (€2.93 billion) in the quarter, ended December 28, from $3.32 billion (€3.02 billion) a year earlier.
Over the past year, the Battle Creek, Michigan-based company has undergone a restructuring, hoping to revitalize its business and attract health-conscious consumers who are not buying the sugary cereals that were once a staple of American breakfast tables.
In April, Kellogg sold Keebler and its flavoured snacks, pie crusts and ice-cream cones businesses to Ferrero for $1.3 billion (€1.3 billion) so it could focus on its core cereals and snacks businesses.
The company reported a net income attributable to itself of $145 million, or 42 cents per share, compared with a loss of $84 million, or 24 cents per share, a year earlier. In the comparative quarter, earnings we hurt by a strong dollar, the costs of an ongoing restructuring and preparations for Brexit.
Excluding items, Kellogg earned 91 cents per share, beating analysts expectations of 85 cents per share, according to IBES data from Refinitiv.
Kellogg, which makes Pringles, Cheez-Its and Pop-Tarts, has over the past year amped up spending on promotions, advertising and making snack-pack versions of classic products that appeal to on-the-go shoppers.