WK Kellogg Co Reports 0.4% Decrease in Net Sales

By Bobby Samwell • Thursday, November 07 10:27 • Permanent Link

WK Kellogg Co, the renowned food and brand company, has released its financial results for the third quarter of 2024, showing notable changes in various key metrics compared to the same period last year. The company reported that net sales decreased by 0.4% year-over-year, amounting to $689 million. However, adjusted net sales increased by 0.7% when compared to standalone adjusted net sales for the same period.

In terms of net income, there was a significant change, with reported net income (loss) decreasing by 126.2% year-over-year, reaching a figure of $(11) million. Conversely, adjusted net income increased by 8.0% when compared to standalone adjusted net income for the period.

One of the most substantial changes was in the adjusted EBITDA, which experienced a remarkable growth of 27.5% year-over-year when compared to standalone adjusted EBITDA. The company also reaffirmed its 2024 adjusted net sales growth guidance and raised the 2024 adjusted EBITDA growth guidance range to 5% to 6%, up from the previous 3% to 5%.

For the year-to-date period ended on September 28, 2024, the reported net sales were $2,068 million, representing a 2.1% decline year-over-year. The adjusted net sales for the same period declined by 0.9% when compared to standalone adjusted net sales.

The company's reported net income for the year-to-date period was $53 million, a decrease of 44.2% year-over-year. In contrast, the adjusted EBITDA for the year-to-date period showed a 5.3% increase compared to standalone adjusted EBITDA.

In light of these results, WK Kellogg Co has reaffirmed its 2024 adjusted net sales growth guidance and raised its 2024 adjusted EBITDA growth guidance, projecting a range of 5.0% to 6.0%, up from the initial 3.0% to 5.0%.

The company's strong performance in the third quarter was attributed to a sequential improvement in volume, driven by strong back-to-school execution and improved supply. Additionally, the increase in adjusted EBITDA was attributed to improved top-line performance, continued operational discipline, and the timing of brand-building spend.

WK Kellogg Co's financial outlook for 2024 indicates a positive trajectory, with the company making progress in executing its strategic priorities as it transforms its business. Today the company's shares have moved 11.7% to a price of $18.81. For more information, read the company's full 8-K submission here.

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