NYSE$K

Kellanova · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Kellanova reported strong first quarter results and reaffirmed its full-year outlook.

Kellanova announced strong first quarter results, marked by improving profit margins and signs of commercial activity restoring volume and share, while reaffirming its full-year outlook.

  • Net sales were negatively impacted by currency translation and the 2023 divestiture in Russia, but organic-basis growth remained at the upper end of its long-term target range.
  • Double-digit operating profit growth was sustained, as the Company continued to restore profit margins faster than expected.
  • Earnings per share again increased at a double-digit rate, reflecting the higher operating profit.
  • The Company reaffirmed its 2024 guidance, calling for net sales and operating profit growth rates that align with its long-term targets.

Headline financials

Total Revenue

$3.2B

Previous: $4.05B-21.0%
EPS (adj)

$1.01

Previous: $1.10-8.2%
Organic revenue growth

0.7%

Previous: 13.7%-94.9%
Reported op. profit growth

9.3%

No prior period
Adj. op. profit growth

-13.1%

No prior period
FXN adj. op. profit growth

-10.5%

No prior period
Reported EPS growth

11.5%

No prior period
Adjusted EPS growth

-10.9%

No prior period
FXN adj. EPS growth

-7.9%

No prior period
Capital Expenditures

-$155M

Previous: $203M-176.4%
Net Income

$267M

Previous: $302M-11.6%
Operating Income

$393M

Previous: $440M-10.7%
Gross Profit

$1.03B

Previous: $1.21B-14.8%
Stock-Based Comp

$21M

Previous: $22M-4.5%

Revenue & EPS history

Kellanova · Revenue · Quarterly

$3.2B

Q1 2024-21%vs Q1 2023
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Kellanova · $3.94B total across 4 segments · Q3 2023

  • North America
    $2.33B-0.4%
  • AMEA
    $657M-14.3%
  • Europe
    $616M+9.6%
  • Latin America
    $338M+19.4%

Forward guidance

The Company again reaffirmed the financial guidance for 2024 that it had first provided in August, 2023, at its Day@K investor event. Despite adverse movements in foreign exchange rates and industry-wide volume pressures since then, the Company is confident in its strengthened commercial plans and initiatives to improve profit margins.

Tailwinds

  • Organic-basis net sales growth of approximately 3% or better against a recast 2023, which remains within the Company's long-term target range, and will continue to be led by the Company's priority snacks brands and emerging markets. This is unchanged from previous guidance.
  • Adjusted-basis operating profit of approximately $1,850-1,900 million, which is unchanged from previous guidance, as underlying sales and margin performance offsets the impact of worsened foreign currency translation, and incremental investment in brands and capabilities.
  • Adjusted-basis earnings per share of approximately $3.55-3.65, which is unchanged from previous guidance.
  • Net cash provided by operating activities of approximately $1.7 billion, with capital expenditure of about $0.7 billion, which is elevated this year for the expansion of Pringles capacity in emerging markets.
  • As a result, free cash flow is expected to be approximately $1.0 billion, an estimate that is unchanged from previous guidance.

Historical earnings impact

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

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+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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