Saturday, January 28, 2023
HomeMarketKellogg raises full-year revenue forecast on higher prices By Reuters

Kellogg raises full-year revenue forecast on higher prices By Reuters

© Reuters. FILE PHOTO: Kellogg’s products of U.S. Kellogg Company are offered at a supermarket of Swiss retail group Coop in Zumikon, Switzerland December 13, 2016. REUTERS/Arnd Wiegmann
- Advertisement -

(Reuters) -Kellogg Co raised its full-year sales and profit forecasts on Thursday, betting that demand for its cereals and snacks will hold strong even after multiple rounds of price increases.

Kellogg (NYSE:) joins other major food and beverage companies, including Oreo maker Mondelez International Inc (NASDAQ:), Coca-Cola (NYSE:) Co and PepsiCo (NASDAQ:) Inc, in using its brand power and distribution scale to pass on pass price increases to consumers, while seeing little pushback in demand.

The company, which is in the process of a three-way break up of its business, said overall average selling prices rose 15.7% in the third quarter, while volumes fell 2.3%.

The company said it now expects annual organic net sales to increase by over 10%, compared with its prior forecast of an increase of 7% to 8%.

Kellogg forecast adjusted full-year profit per share to rise over 3% on a currency-neutral basis, compared with a prior outlook of over 2% growth.

The company’s net sales rose 9% to $3.95 billion in the third quarter ended Oct. 1. Analysts had expected revenue of $3.78 billion, according to Refinitiv IBES data.

Story Credit:

- Advertisment -

Most Popular