K - Kellogg Non-GAAP EPS of $1.24 beats by $0.13 revenue of $4.04B misses by $20M

2023-08-03 08:06:58 ET

• Kellogg press release ( NYSE: K ): Q2 Non-GAAP EPS of $1.24 beats by $0.13 .
• Revenue of $4.04B (+4.7% Y/Y) misses by $20M .
• Double-digitoperatingprofitgrowthwasdrivenbyanearlier-than-expectedrecoveryintheCompany's grossprofitmarginandbynetsalesgrowth.
• TheCompanydeliverednetsalesgrowththatwasbroad-basedwithallregionsingrowthexceptforAMEA wherecurrencytranslationwassubstantiallyadverse.Onanorganicbasis,allregionsremainedingrowth.
• Reflectingthestrongsecondquarterandfirsthalfresults,theCompanyagainraiseditsguidancefor organicbasisnetsalesgrowth,aswellasforcurrency-neutral,adjustedoperatingprofitandearningsper share.
• RaisesFull-Year Guidance: Raisesitsguidancefororganic-basisnetsalesgrowthtoapproximately+7%,fromitspriorguidanceof +6%to+7%,reflectingthestrengthoftheCompany'sfirsthalfresults.
• Raisesitsguidanceforadjusted-basisoperatingprofitgrowthto+9%to+10%onacurrency-neutral basis,fromitspriorguidanceof+8%to+10%.
• Raisesitsguidanceforadjusted-basisearningspersharedeclineof(1)%to(2)%onacurrency-neutral basis,frompriorguidanceofapproximately(1)%to(3)%,despitesignificantyear-on-yearpressurefrom theimpactonpensionincomeandinterestexpenseoflowerfinancialassetvaluesandhigherinterest rates.
• Affirmsitsguidancefornetcashprovidedbyoperatingactivitiestobeapproximately$1.7-$1.8billion, withcapitalexpenditureofapproximately$0.7billion,resultinginguidanceforcashflowof approximately$1.0-$1.1billion.Shares -0.21% PM.

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