Kellogg Europe’s first quarter reported net sales increased 2%, as price/mix growth more than offset a modest volume decline related to lapping strong 2-year comparisons, and significantly adverse currency translation, according to the company’s Financial News Release. On an organic-basis, net sales increased 8% led by snacks. Reported operating profit increased 22%, driven by strong net sales. Adjusted-basis operating profit increased by 22%, and by 28% excluding currency.
Kellogg’s first quarter 2022 GAAP net sales increased by more than 2% year on year, as positive price/mix and growth momentum of snacks brands in all four Regions more than offset adverse currency translation and the impact of insufficient finished-goods inventory in North America cereal related to a fire and labor strike in the second half of 2021. On an organic basis, which excludes the impact of currency, the company’s net sales grew just over 4%. Reported operating profit in the first quarter increased 10% year on year, as favorable mark-to-market impacts more than offset adverse currency translation and the residual impacts of the second-half 2021 fire and strike in North America cereal. On an adjusted basis, which excludes mark-to-market and one-time charges, operating profit declined by 4%, and by only 2% excluding currency translation, the document reads.
“We are pleased to report another quarter of solid results, getting off to a better start to the year than we had expected,” said Steve Cahillane, Kellogg Company’s chairman and chief executive officer. “The strength of our portfolio is evident, as we more than offset the sales and cost impact of supply recovery in North America cereal with sustained momentum in snacks growth around the world. Our ability to execute with agility was also on display, as we navigated through a challenging supply environment and delivered productivity and price realization amidst decades-high cost inflation.”