NYSE$K
Kellanova · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Kellogg Company reported strong second quarter results and raised its full-year sales and profit guidance.
Kellogg Company's second quarter 2023 results showed net sales growth of 4.6% and organic net sales growth of 7.1%. The company raised its full-year guidance for organic net sales growth and currency-neutral adjusted operating profit and earnings per share, driven by strong brand performance and profit margin recovery.
- Double-digit operating profit growth was driven by an earlier-than-expected recovery in the Company's gross profit margin and by net sales growth.
- The Company delivered net sales growth that was broad-based with all regions in growth except for AMEA where currency translation was substantially adverse. On an organic basis, all regions remained in growth.
- Reflecting the strong second quarter and first half results, the Company again raised its guidance for organic basis net sales growth, as well as for currency-neutral, adjusted operating profit and earnings per share.
- The Company continues to progress towards its planned separation of its North America cereal business, which is expected to be completed during the fourth quarter.
Headline financials
Revenue & EPS history
Kellanova · Revenue · Quarterly
$4.04B
Revenue by segment
Kellanova · $4.04B total across 4 segments · Q2 2023
- North America$2.33B+3.4%57.5%
- AMEA$712M-2.7%17.6%
- Europe$669M+11.9%16.6%
- Latin America$336M+16.7%8.3%
Forward guidance
Kellogg Company has raised its full-year 2023 guidance, reflecting its strong first-half results and confidence in its second-half plans.
Tailwinds
- Raises its guidance for organic-basis net sales growth to approximately +7%, from its prior guidance of +6% to +7%, reflecting the strength of the Company's first half results. This guidance continues to assume price/mix growth and a gradual rise in price elasticities.
- Raises its guidance for adjusted-basis operating profit growth to +9% to +10% on a currency-neutral basis, from its prior guidance of +8% to +10%. This reflects earlier-than-expected progress toward profit margin recovery.
- Raises its guidance for adjusted-basis earnings per share decline of (1)% to (2)% on a currency-neutral basis, from prior guidance of approximately (1)% to (3)%, despite significant year-on-year pressure from the impact on pension income and interest expense of lower financial asset values and higher interest rates.
- Affirms its guidance for net cash provided by operating activities to be approximately $1.7 - $1.8 billion, with capital expenditure of approximately $0.7 billion, resulting in guidance for cash flow of approximately $1.0 - $1.1 billion.
- This is below 2022 levels primarily due to approximately $0.3 billion of up-front charges and capital expenditure related to the Company's pending separation, without which cash flow would be higher year on year.
Headwinds
- Significant year-on-year pressure from the impact on pension income.
- Interest expense of lower financial asset values.
- Higher interest rates.
- Approximately $0.3 billion of up-front charges related to the Company's pending separation.
- Capital expenditure related to the Company's pending separation.
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 2023
+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
| Quarter | Report date | Reaction (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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