Kellogg Co. recently released its first quarter results for 2018 with strong sales data reported from Pringles chips. Additionally, the Eggo frozen waffles and the demand in emerging markets added to figures as well.
The sales data indicated a 4.7% rise in a year over year basis at $3.4 billion during the period. Furthermore, the figures added 0.6% to $3.27 billion on an organic basis as well.
Furthermore, the fiscal report showed positive data for the company’s revenue and adjusted earnings as well. Both sectors exceeded the market estimates during the period. The First-quarter comparable earnings displayed a $1.19 per share upsurge which surpassed the estimated data of $1.07. The company also reported a revenue rise of $3.4 billion which increased by 4.7% in year over year basis.
The bottom line increased 11.2% year over year banking on higher business delivery, lower effective tax rate and reduced restructuring charges.
“We have a lot of work to do, but we are making progress,” Recently appointed Chief Executive Steve Cahillane, told reports. “Our overall business is increasing its velocities on shelf. And Pringles is growing strongly worldwide. We stabilized our core international developed cereal markets and even showed some improvement.”
Additionally, shares of Kellogg saw a 2% increase after the posted results.
Kellogg Stake Acquisition
In other news, Kellogg has also reported that it’ll be investing $420 million to boost its interest in a joint venture Tolaram Africa Foods.
Back in 2015, Kellogg inked a joint venture agreement with Singapore-based Tolaram. This followed a acquisition of 50% stake in distributor Multipro. Also, the contract indicated that Kellogg has been given a choice to exercise a stake acquisition in TAF in the future.
“Expansion in emerging markets is an important element of our growth strategy.” Steve Cahillane explained.
“Our additional investment is a statement of confidence in this venture, and the consolidation of Multipro’s results means that investors will now have visibility into its strong growth.”
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