Kellogg Co, the world's largest maker of breakfast cereals, reported better-than-expected quarterly profit and sales as demand rose in Latin America.
Continue Reading Below
The maker of Corn Flakes and Rice Krispies said on Tuesday that sales in Latin America rose 6 percent to $295 million in the first quarter ended April 4.
The company's sales rose across product lines in Asia Pacific and in its Pringles business in Europe, but a strong dollar more than offset the benefit of this rise.
The dollar has surged about 20 percent against a basket of major currencies in the past year, making sales denominated in other currencies less valuable in dollar terms.
Kellogg gets about a third of its revenue from outside North America.
Sales in Kellogg's U.S. morning foods business, which includes cereal, fell almost 3 percent to $776 million. The business has reported a rise in sales only once in the last eight quarters.
Net income attributable to Kellogg nearly halved to $227 million, or 64 cents per share, mainly due to higher expenses related to its cost-cutting program and its pension plans.
Excluding items, Kellogg earned 98 cents per share.
Net sales fell 5 percent to $3.56 billion.
Analysts on average had expected earnings of 91 cents per share and revenue of $3.55 billion, according to Thomson Reuters I/B/E/S.
Kellogg's shares were little changed at $64.25 in premarket trading on Tuesday. (Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Savio D'Souza and Kirti Pandey)