NYSE$K

Kellanova · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported strong first quarter results and raised full-year outlook.

Kellogg Company reported strong first quarter 2021 results with net sales growth broad-based across regions and global categories, and operating profit and earnings per share grew on top of year-ago exceptional growth. On the strength of this performance, the Company increased its full-year financial outlook.

  • Kellogg continued to execute well against its priorities of protecting employees' health and safety, supplying food to the marketplace, and aiding communities during the COVID-19 pandemic.
  • Strong net sales growth was broad-based across regions and global categories despite lapping exceptional year-ago performance.
  • Operating profit and earnings per share grew on top of year-ago exceptional growth as higher net sales and operating leverage resulted in balanced financial delivery.
  • Kellogg increased its full-year financial outlook.

Headline financials

Total Revenue

$3.58B

Previous: $3.41B+5.0%
EPS (adj)

$1.11

Previous: $0.99+12.1%
Organic revenue growth

4.2%

Previous: 8.0%-47.5%
Free Cash Flow

$62M

Previous: $279M-77.8%
Net Income

$371M

Previous: $350M+6.0%
Operating Income

$472M

Previous: $459M+2.8%
Cash & Equivalents

$391M

Previous: $1.02B-61.5%
Total Assets

$18.1B

Previous: $18.2B-1.0%

Revenue & EPS history

Kellanova · Revenue · Quarterly

$3.58B

Q1 2021+5%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Kellanova · $3.58B total across 4 segments · Q1 2021

  • North America
    $2.13B+1.6%
  • AMEA
    $640M+13.9%
  • Europe
    $578M+9.9%
  • Latin America
    $236M+4.4%

Forward guidance

Kellogg Company raised its full-year financial guidance on the strength of its first quarter results.

Tailwinds

  • Organic net sales growth is now expected to finish 2021 approximately flat year on year, up from previous guidance of a decline of approximately (1)%. This implies a 2-year compound annual growth rate of almost 3%.
  • Currency-neutral adjusted operating profit growth is now projected to decline approximately (1)% - (2)% year on year, an improvement from previous guidance of a decline of approximately (2)%. This equates to a 2-year compound annual growth rate of approximately 4% excluding since-divested businesses from the 2019 base.
  • Currency-neutral adjusted earnings per share for the full year is now estimated to increase by approximately +1% - 2% year on year, an improvement from previous guidance +1%. This implies a 2-year compound annual growth rate of approximately 5% excluding since-divested businesses from the 2019 base.
  • Net cash provided by operating activities is now expected to finish 2021 at approximately $1.6 - $1.7 billion, above the previous guidance range of $1.6 billion.
  • Cash flow is now expected to finish 2021 at $1.1 - $1.2 billion, an increase from the previous guidance of approximately $1.1 billion.

Headwinds

  • Guidance excludes any significant supply chain or other prolonged market disruptions related to the pandemic or global economy.
  • Currency-neutral adjusted operating profit growth is now projected to decline approximately (1)% - (2)% year on year
  • Uncertainty of the magnitude, duration, geographic reach, impact on the global economy and current and potential travel restrictions of the COVID-19 outbreak
  • The current, and uncertain future, impact of the COVID-19 outbreak on business, growth, reputation, prospects, financial condition, operating results (including components of financial results), and cash flows and liquidity
  • The risk that disruptions from the divestiture will divert management's focus or harm the Company’s business

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports

Historical avg

+0.6%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+1.4%

Avg return

30 days after

49%

33 / 67 earnings

Positive

+8.9%

Q2 2019

Best reaction

-10.9%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025
Q3 2025+0.1%+0.2%+0.7%
Q2 2025-0.0%-0.1%-0.4%
Q1 2025-0.0%-0.9%-0.6%
Q4 2024+0.3%+0.4%+0.7%
Q3 2024-0.3%+0.0%+0.3%
Q2 2024+8.3%+26.1%+38.3%
Q1 2024+6.2%+8.2%+5.8%
Q4 2023-0.4%+1.0%+1.0%
Q3 2023+2.2%+2.6%+5.5%
Q2 2023-2.8%-4.8%-10.2%
Q1 2023-1.7%-1.5%-5.8%
Q4 2022+0.7%-0.0%-5.0%
Q3 2022-7.9%-5.8%-2.6%
Q2 2022+1.5%+1.7%-1.7%
Q1 2022+7.2%+7.5%-0.2%
Q4 2021+3.5%+4.6%-3.1%
Q3 2021-1.2%
Q2 2021+1.9%
Q1 2021+6.2%
Q4 2020-1.3%
Q3 2020-0.9%
Q2 2020-2.7%
Q1 2020-0.1%
Q4 2019-7.5%
Q3 2019+4.6%
Q2 2019+8.9%
Q1 2019-4.9%
Q4 2018-6.4%
Q3 2018-10.9%
Q2 2018+3.9%
Q1 2018+5.5%
Q4 2017+4.9%
Q3 2017+7.0%
Q2 2017+3.2%
Q1 2017+2.5%
Q4 2016+3.4%
Q3 2016-0.1%
Q2 2016+2.0%
Q1 2016-2.6%
Q4 2015+5.8%
Q3 2015-2.7%
Q2 2015+3.9%
Q1 2015-1.8%
Q4 2014-4.7%
Q3 2014+2.4%
Q2 2014-3.6%
Q1 2014-1.8%
Q4 2013+1.7%
Q3 2013+1.3%
Q2 2013-1.5%
Q1 2013-1.5%
Q4 2012+1.5%
Q4 2011+2.0%
Q3 2012+2.6%
Q2 2012+5.3%
Q1 2012-0.3%
Q3 2011-1.0%
Q2 2011-1.4%
Q1 2011-0.4%
Q1 2010+1.0%
Q4 2007-0.3%
Q4 2010-0.3%
Q3 2009+0.8%
Q3 2010+0.8%
Q2 2010-0.1%
Q4 2009-0.1%
Q2 2009-0.1%

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