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The Michigan-based company also beat second-quarter sales and profit estimates, sending its shares nearly 4% higher in premarket trading.
Work from home policies and closure of schools have led to a surge in demand for cereals, oatmeal and snacks in North America, with Kellogg’s organic net sales in the region rising 11% in the second quarter ended June 27.
Net sales stayed roughly flat from a year ago at about $3.47 billion, due to the sale of Kellogg’s Keebler cookie business last year. Analysts had expected net sales of $3.30 billion, according to IBES data from Refinitiv. https://reut.rs/3f7fa12
Organic net sales rose 9.2% in the quarter.
Excluding items, Kellogg earned $1.24 per share, beating analysts’ average estimate of 94 cents.
Net income attributable to the company climbed to $351 million, or $1.02 per share, from $286 million, or 84 cents per share, a year earlier.
The company forecast full-year organic net sales to rise about 5%, ahead of a prior forecast of a 1% to 2% increase, and its adjusted earnings per share to fall about 1%, compared with previous outlook of a 3% to 4% fall.
