Kellanova

K

Equity

ISIN US4878361082 / Valor 944624

New York Stock Exchange, Inc (2024-11-21)

USD 81.02+0.30%

Kellanova
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About company

Kellanova, formerly known as Kellogg Company, is a global food manufacturer with a history spanning over a century. The company has evolved to focus on differentiating its product offerings and operational strategies to ensure continuous improvement and impactful market presence. Kellanova is committed to delivering on its promises to various stakeholders, including investors, suppliers, customers, and employees. A significant aspect of its mission is the Kellanova Better Days™ Promise, which aims to advance sustainable and equitable access to food. This initiative targets enhancing the wellbeing, hunger, sustainability, and equity, diversity, and inclusion (ED&I) for 4 billion people by the end of 2030. The company's efforts include nourishing 1.5 billion people, feeding 400 million people in need, and engaging 2 billion people in advocacy, all while nurturing the planet and valuing workforce diversity.

Summarized from source with an LLMView SourceSector: Consumer Non-Cyclicals

Net Sales Performance

Kellanova's reported net sales for the second quarter of 2024 decreased by 5% year-on-year, primarily due to adverse foreign currency translation and the divestiture of its business in Russia in 2023. However, on an organic basis, which excludes the impact of currency and divestiture, the company's net sales increased by 4%. This indicates that the underlying business performance remains strong despite external challenges.

Operating Profit Growth

In the second quarter of 2024, Kellanova reported an 18% year-on-year increase in operating profit. This growth was driven by a favorable swing in net mark-to-market, continued improvement in gross profit margin, and reimbursement for transition services provided to WK Kellogg Co. On an adjusted basis, excluding mark-to-market and one-time charges, operating profit increased by 13%, and excluding currency translation, it increased by 16%.

Earnings Per Share

Kellanova's reported earnings per share (EPS) for the second quarter of 2024 increased by 18% year-on-year, reflecting higher operating profit and increased other income, offset by higher interest expense. On an adjusted basis, EPS increased by 12%, and excluding currency translation, adjusted EPS increased by 14%. This demonstrates the company's ability to deliver strong earnings growth despite financial headwinds.

Cash Flow and Capital Expenditure

Year-to-date net cash provided by operating activities was $740 million, a significant increase from the previous year's $644 million. This was aided by a planned, one-time distribution out of a postretirement plan. Capital expenditure for the period was $297 million, lower than the prior year due to the separation of WK Kellogg Co. Free cash flow, defined as net cash provided by operating activities less capital expenditure, was $443 million year-to-date, up from $305 million in the previous year.

Full-Year Outlook

On the strength of its first-half results, Kellanova has raised its full-year 2024 guidance for organic net sales growth, adjusted-basis operating profit, adjusted-basis earnings per share, net cash provided by operating activities, and free cash flow. This optimistic outlook reflects the company's confidence in its ability to sustain strong financial performance and navigate ongoing market challenges effectively.

Summarized from source with an LLMView Source

Key figures

53.4%1Y

30.8%3Y

25.2%5Y

Performance

25.1%1Y

22.9%3Y

24.1%5Y

Volatility