WK Kellogg impressed investors with its first financial report as a standalone company after it was spun off from Kellanova, formerly known as the Kellogg Company (NYSE:K), in October.
Shares of the cereal giant - whose brands include Kellogg’s, Frosted Flakes, Froot Loops, Mini-Wheats, Special K, Raisin Brand, Rice Krispies, Corn Flakes, and Kashi – moved higher as WK Kellogg’s third quarter revenue and earnings topped estimates, up 3.5% at US$10.83.
Revenue of $692 million exceeded estimates of $658.96 million but was down 2% year-over-year, which WK Kellogg attributed to anticipated price elasticities.
Earnings per share improved from $0.27 in the comparable period in 2022 to $0.49, ahead of estimates of $0.25.
WK Kellogg slightly improved its 2023 guidance, now forecasting net sales in the range of $2.72 billion to $2.74 billion and adjusted earnings before interest, taxes, deprecation and amortization (EBITDA) margin in the range of $9.1% to 9.2%.
It also reaffirmed its 2024 financial outlook, expecting its adjusted sales to be flat year-over-year and adjusted EBITDA in the range of $255 million to $265 million.
“We are off to a strong start and remain confident in our strategy and financial outlook,” WK Kellogg CEO Gary Pilnick said in a statement.
“Our team is executing on plan, we are building momentum, and delivering the consistent results we need to capture our unique margin opportunity.”
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