Kellogg’S raised its full year sales and profit forecast yesterday, buoyed by rising demand for its corn flakes and Froot Loops among consumers stuck at home due to the Covid-19 pandemic.
The Michigan-based company also beat second-quarter sales and profit estimates, sending its shares nearly 4 percent higher in premarket trading.
Work from home policies and closure of schools have led to a surge in demand for cereals, oatmeal and snacks in North America, with Kellogg’s organic net sales in the region rising 11 percent in the second quarter ended June 27.
Net sales stayed roughly flat from a year ago at about US$3,47 billion, due to the sale of Kellogg’s Keebler cookie business last year. Analysts had expected net sales of US$3,30 billion, according to IBES data from Refinitiv.
Organic net sales rose 9,2 percent in the quarter. — Reuters.
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