Kellogg Company (NYSE:K) has unveiled financial targets and strategies for its cereals business WK Kellogg and snacks arm Kellanova ahead of their previously announced hive-off during the fourth quarter.
Management of both businesses are meeting investors today at an Investor Day ahead of the planned spin-off.
"We are excited to be able to share the strategies and financial outlooks for what will be two outstanding companies after the spin-off," stated Steve Cahillane, Kellogg's chair and chief executive.
Projected net sales for Kellanova are between $13.4-13.6 billion with adjusted-basis EBITDA of around $2.25-2.3 billion in 2024.
The business expects to deliver long-term annual growth rates of 3-5% for net sales, 5-7% for operating profit and 7-9% for earnings per share in 2024 on a like-for-like basis.
WK Kellogg is expected to benefit from a modernized supply chain, which it expects will result in improved competitiveness, profitability, and cash flow.
Sales are forecast of around $2.7 billion with adjusted EBITDA of around $255-265 million in 2024.
Over the next three years, WK Kellogg expects to improve its adjusted EBITDA margin by 500 basis points by the end of 2026, through supply chain modernization and a stable top-line trajectory.