K - Kellogg beats Q1 top and bottom line estimates; raises FY23 outlook

2023-05-04 08:06:47 ET

• Kellogg press release ( NYSE: K ): Q1 Non-GAAP EPS of $1.10 beats by $0.10 .
• Revenue of $4.05B (+10.4% Y/Y) beats by $100M .
• Capitalexpenditureof$203millionwashigherthantheprioryear, reflectingtimingofinvestment.
• Cashflow,definedasnetcashprovidedbyoperatingactivitieslesscapital expenditure,was$73millionthroughthefirstthreemonthsoftheyear.
• Onanadjustedbasis,whichexcludessuchmark-to-marketand one-timecharges,operatingprofitincreasedby15%,andexcludingcurrencytranslation,itincreasedby18%.
• Outlook: Reflectingitsstrongstarttotheyearandfavorableplansandmomentum,KelloggCompanyhasupdateditsfull year2023guidanceasfollows: Raisesitsorganic-basisnetsalesgrowthguidancetoatightenedrangeof+6%to+7%,fromitsprior guidanceof+5to+7%.
• Raisesitsguidanceforadjusted-basisoperatingprofitgrowthto+8%to+10%onacurrency-neutral basis,fromitspriorguidanceof+7%to+9%.
• Raisesitsguidanceforanadjusted-basisearningspersharedeclineto(1)%to(3)%onacurrency-neutral basis,frompriorguidanceofapproximately(2)%to(4)%.
• Affirmsitsguidancefornetcashprovidedbyoperatingactivitiestobeapproximately$1.7-$1.8billion, withcapitalexpenditureofapproximately$0.7billion,resultinginaffirmingitsguidanceforcashflowof 3 approximately$1.0-$1.1billion.
• Thisisbelow2022levelsduesolelytoapproximately$0.3billionofupfrontchargesandcapitalexpenditurerelatedtotheCompany'spendingseparation,withoutwhichcash flowwouldbehigheryearonyear.

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