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The Battle Creek, Michigan-based company, known for its Corn Flakes brand and characters like Tony the Tiger, operates in the food sector across the US, Canada, and the Caribbean. It employs roughly 3,000 personnel and has a valuation of around $1.5 billion post-split. According to InvestingPro’s real-time metrics, WK Kellogg now has an adjusted market cap of $18.15 billion, a P/E Ratio of 20.86, and a revenue of $15.87 billion.
WK Kellogg experienced a sales drop from $2.8 billion during the pandemic to $2.4 billion in 2021. After a half-billion-dollar investment program, it aims to achieve flat sales at $2.7 billion and an EBITDA of $260 million by fiscal year 2024. The company operates with a $465 million net cash position. InvestingPro data reveals a revenue growth of 8.88% and gross profit of $4861 million for the company.
CEO Gary Pilnick remains optimistic about achieving these strategic objectives as an independent entity, even with the initial market reaction. An InvestingPro tip suggests that WK Kellogg is in oversold territory, indicating a potential rebound. The company also has a track record of maintaining dividend payments, having raised its dividend for 18 consecutive years.
Meanwhile, Kellanova generates pro forma sales of $13 billion and EBITDA of roughly $2 billion. Post-spin-off, the company operates with 342 million shares outstanding, generating earnings of around $3.35 per share. The market’s perception of the split has had a negative impact on share prices. For more insights like these, consider subscribing to InvestingPro which offers additional tips and real-time metrics.
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