NEW YORK: Kellogg Co raised its annual forecasts yesterday after posting better-than-expected revenue and profit, signalling that the pandemic-induced surge in demand for its cereals and snacks has not weakened even as the US economy reopens.
Fresh curbs in several parts of the world, including France, the UK and parts of Asia early this year have also helped demand as consumers stuck at home indulged in snacks.
Sales grew 10 per cent in Europe and about 2pc in North America, its biggest market, sending shares of Kellogg up 7pc.
The company’s forecast raise came at a time when its peers including Kraft Heinz and Mondelez International Inc have flagged a hit to earnings from higher costs for sugar, wheat and soy as well as freight.
Kellogg said its increased forecast takes into account the higher costs, mainly thanks to better pricing of its products.
Known for its Corn Flakes and Honey Loops cereals, Kellogg projected full-year organic net sales to be nearly flat, compared to prior estimate of about 1pc decline.
It also expects adjusted full-year profit per share on a currency-neutral basis to rise by about 1pc to 2pc, compared to its previous projection of about 1pc rise.