Kellogg Company recently announced third quarter 2017 results and updated and reaffirmed its financial outlook for the full year 2017. The frozen food category was one of the main growth drivers for the quarter.
“Our third quarter played out as expected. Operating profit margin expansion got an added boost from the transition out of Direct-Store Delivery, and we posted another quarter of sequential improvement in our net sales performance,” said John Bryant, Kellogg Company’s chairman. “There was some timing benefit that comes out of the fourth quarter, but these results put us solidly on track to deliver on our full year 2017 financial guidance, just as we welcome Steve Cahillane as the eleventh chief executive officer in our Company’s history.”
Kellogg Company’s third-quarter net sales and operating profit performance continued to improve sequentially. Year on year, sales were reduced by the list-price adjustment and other impacts from transitioning out of DSD in U.S. Snacks, and remained pressured by softness in the health and wellness segment of the cereal category in the U.S.
However, key elements of an improving second-half net sales performance took shape as anticipated, including the return to promotional activity and growth for Pringles in Europe; a return to growth in North America Other, led by accelerated consumption growth in Frozen Foods; and sequential improvement in Special K’s global performance. Additionally, productivity savings accelerated with the closing of the DSD system in U.S. Snacks.
Frozen Foods’ sales growth accelerated in the quarter, with strong consumption and share performance for both Eggo and Morningstar Farms, each driven by innovation and favorable category dynamics.