NYSE$K

Kellanova · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Kellogg Company reported strong net sales growth, mitigated negative profit impacts, and raised its full-year outlook.

Kellogg Company announced its Q3 2022 results, showcasing strong net sales growth driven by positive price/mix and momentum in snacks globally. The company effectively navigated global supply challenges and cost pressures, leading to an increased full-year outlook for organic-basis net sales growth and adjusted earnings per share.

  • Strong net sales growth, bolstered by positive price/mix.
  • Momentum in snacks globally and in noodles and cereal in emerging markets.
  • Continued rebound in North America cereal.
  • Mitigated negative impacts on profit of high cost inflation, economy-wide bottlenecks and shortages through productivity and revenue growth management.

Headline financials

Total Revenue

$3.95B

Previous: $3.62B+8.9%
EPS (adj)

$1.01

Previous: $1.09-7.3%
Organic revenue growth

13.4%

Previous: 5.1%+162.7%
Capital Expenditures

$83M

No prior period
Free Cash Flow

$292M

No prior period
Net Income

$312M

Previous: $305M+2.3%
Operating Income

$368M

Previous: $447M-17.7%
Gross Profit

$1.15B

No prior period
Cash & Equivalents

$373M

Previous: $440M-15.2%
Total Assets

$19B

No prior period
Stock-Based Comp

$21M

No prior period

Revenue & EPS history

Kellanova · Revenue · Quarterly

$3.95B

Q3 2022+8.9%vs Q3 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Kellanova · $3.95B total across 4 segments · Q3 2022

  • North America
    $2.34B+13.8%
  • AMEA
    $767M+12.3%
  • Europe
    $562M-10.9%
  • Latin America
    $283M+12.3%

Forward guidance

Kellogg Company has updated its full-year 2022 guidance.

Tailwinds

  • Raises its guidance for organic-basis net sales growth to approximately +10%, from its prior guidance of +7-8%.
  • Reflects better-than-expected growth through the most recent quarter, as well as revenue growth management actions and good in-market momentum, particularly in snacks and emerging markets.
  • Raises its guidance for adjusted-basis operating profit growth to approximately +6% on a currency-neutral basis, from its prior guidance of +4-5%.
  • Reflects the Company's better-than-expected results in its latest quarter, and incorporates continued high cost inflation, bottlenecks and shortages, and increased brand investment in the second half.
  • Raises its guidance for adjusted-basis earnings per share growth to approximately +3% on a currency-neutral basis, from prior guidance of approximately +2%.

Headwinds

  • Partially offset by a further reduction in non-operating, non-cash pension income, stemming from a remeasurement that now reflects this year's higher interest rates and sharply lower equity and bond values.
  • Updates its expectation for net cash provided by operating activities to be approximately $1.7 billion
  • Capital expenditure of approximately $0.5 billion, resulting in affirming its guidance for cash flow of approximately $1.2 billion.
  • Excluded from this guidance are any significant supply chain or other prolonged market disruptions related to the pandemic or the global economy.
  • Guidance and goals expressed in this press release are on a currency-neutral basis, and adjusted to exclude restructuring charges, mark-to-market adjustments of pensions commodity contracts, certain equity investments and certain foreign currency contracts, and other costs impacting comparability.

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 Q3 2022

Historical avgQ3 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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