Kellogg Company announces Q1 2015 results

Kellogg Company has announced its first quarter 2015 results for net sales, operating profit, and earnings per share. 

First quarter 2015 reported net sales for Kellogg Company decreased by 5.0% to $3.6 billion, primarily due to the effect of currency translation.  Currency-neutral comparable net sales decreased by 0.3% over the same period; this result included growth in each of the international regions.  First quarter 2015 reported operating profit was $384 million, a decline of 37.5%; this decrease was driven primarily by the impact that asset returns and changes in interest rates had on pension plans.  The decline in currency-neutral comparable operating profit was largely the result of slightly lower net sales.

Comparable first quarter 2015 earnings were $0.98 per share, greater than the Kellogg Company’s expectations

Reported earnings for the first quarter of 2015 were $227 million, or $0.64 per share, a decrease of 43% from the $1.12 per share reported in the first quarter of last year.  Earning per share included negative impacts from mark-to-market of $0.13 per share and costs associated with the Project K efficiency and effectiveness program of $0.13 per share.  In addition, reported results included $0.01 per share of integration costs related to the acquisition of Pringles and Bisco Misr and $0.07 of other costs.  Excluding these items, comparable first quarter 2015 earnings were $0.98 per share, greater than the Kellogg Company’s expectations.  This result included a negative impact of $0.06 per share from currency translation; comparable earnings per share excluding the impact of currencies would have been $1.04 per share.

“We were pleased to report improved sales trends in the first quarter.  In fact, our results exceeded our expectations and we are on-track for the year,” said John Bryant, Kellogg Company’s chairman and chief executive officer.  “We’ve made great progress with Project K and are reinvesting to drive profitable sales growth.”

Net sales posted by Kellogg North America were $2.4 billion in the first quarter, a reported decrease of 3.7%; currency-neutral comparable net sales decreased by 2.8%. 

Reported net sales decreased by 13.8% in Europe in the quarter; currency-neutral comparable net sales increased by 1.0% including double-digit currency-neutral comparable net sales growth for the Pringles business.  In Latin America, reported net sales increased by 6.3%; currency-neutral comparable net sales increased by 15.7%, including broad-based growth across the region.  Reported net sales in Asia Pacific decreased by 5.3%; currency-neutral comparable net sales increased by 4.0% due to good rates of growth in the Asian businesses.