NYSE$K

Kellanova · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Kellogg Company's second quarter performance demonstrated portfolio strength and effective management of challenging supply and cost environment, resulting in strong financial results.

Kellogg Company reported strong second quarter 2022 results, driven by sustained net sales growth led by snacks, international momentum in noodles and cereal, and faster-than-expected recovery in North America cereal. The company raised its full-year earnings guidance, reflecting better-than-expected performance in the first half and confidence in managing supply and cost challenges.

  • Sustained strong net sales growth, led by snacks globally and international momentum.
  • Mitigated negative profit impacts through productivity and revenue growth management.
  • Raised full-year guidance for organic net sales growth, adjusted operating profit and EPS, and cash flow.
  • Readying the Company for its proposed separation of its North America Cereal and Plant-based businesses.

Headline financials

Total Revenue

$3.86B

Previous: $3.56B+8.7%
EPS (adj)

$1.18

Previous: $1.14+3.5%
Organic revenue growth

12.2%

Previous: -0.4%+3150.0%
Capital Expenditures

$129M

No prior period
Free Cash Flow

$538M

No prior period
Net Income

$326M

Previous: $385M-15.3%
Operating Income

$415M

Previous: $504M-17.7%
Gross Profit

$1.14B

No prior period
Cash & Equivalents

$323M

Previous: $395M-18.2%
Total Assets

$18.9B

No prior period
Stock-Based Comp

$19M

No prior period

Revenue & EPS history

Kellanova · Revenue · Quarterly

$3.86B

Q2 2022+8.7%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Kellanova · $3.87B total across 4 segments · Q2 2022

  • North America
    $2.25B+11.7%
  • AMEA
    $732M+11.2%
  • Europe
    $598M-3.2%
  • Latin America
    $288M+8.3%

Forward guidance

Kellogg Company raised its full-year 2022 guidance for organic net sales growth to +7-8%, adjusted-basis operating profit growth to +4-5% on a currency-neutral basis, and adjusted-basis earnings per share growth to approximately +2% on a currency-neutral basis. It also raised its guidance for net cash provided by operating activities to approximately $1.8 billion and cash flow to approximately $1.2 billion.

Tailwinds

  • Better-than-expected growth in the first half.
  • Revenue growth management actions.
  • Good in-market momentum, particularly in snacks and emerging markets.
  • Incorporates continued high cost inflation.
  • Resumption of investment in the second half.

Headwinds

  • Any significant supply chain disruptions related to the pandemic or the global economy.
  • Other prolonged market disruptions related to the pandemic or the global economy.
  • Reduction in non-operating, non-cash pension income.
  • Higher interest rates.
  • Sharply lower equity and bond values.

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 Q2 2022

Historical avgQ2 2022

+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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