WK Kellogg Co Reports Strong Q3 Earnings

WK Kellogg Co reported its Q3 earnings, revealing a slight 0.4% decrease in reported net sales but a 0.7% increase in adjusted net sales year-over-year. The company achieved an 8.0% rise in adjusted net income and a significant 27.5% growth in adjusted EBITDA, prompting an optimistic revision of its 2024 adjusted EBITDA growth guidance to 5% to 6%. Despite facing a net sales decline to $689 million, Kellogg beat Wall Street estimates for revenue and profit, benefiting from strong consumer demand for its cereals, including Froot Loops and Apple Jacks. The company’s gross margin improved to 29.4%, and its shares rose about 10% in premarket trading. Additionally, Kellogg has implemented a reorganization plan to enhance efficiency amidst a competitive market environment, while also anticipating lower-end growth for full-year net sales between a 1% decline and a 1% rise. Overall, the results signal resilience and adaptability in the evolving food industry landscape.