Kellogg Delivers “On-Guidance” Results Despite Profit Hit In Q4

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Kellogg Company has reported organic net sales growth of approximately 3.5% in its 2021 full-year results, “despite lapping unusually strong, pandemic-aided organic growth in 2020”.

Reported net sales increased by approximately 3% year-on-year to $14.18 billion, driven by positive price/mix in all four of its regions.

However, reported operating profit for Q4 declined by almost 15% versus the prior-year quarter, due to the impact of supply disruptions worldwide, including a 12-week labour strike at Kellogg’s US cereal plants.

“As we’ve closed the books on the fiscal year 2021, I could not be more proud of our organisation’s focus and determination to work through challenges and deliver on our financial commitments,” said Steve Cahillane, Kellogg’s chairman and CEO. “Facing significant cost inflation, worldwide bottlenecks and shortages, and even a labour strike at all of our US cereal facilities in the fourth quarter, the team executed with agility to deliver another year of on-guidance results.”

He continued: “We enter 2022 with growth momentum, financial flexibility from strong cash flow and balance sheet, and enhanced capabilities that will continue to enable us to manage through challenging business conditions”.