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Higher net sales, operating profit pushes Kellogg back to profit

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Higher net sales, operating profit pushes Kellogg back to profit

Kellogg Co. posted net income of $428 million, or $1.23 per diluted share, in the fourth quarter of 2017, compared with a net loss of $53 million, or 15 cents per diluted share, in the same previous-year period, driven by higher net sales and operating profit.

Net sales for the quarter ending Dec. 30, 2017, stood at $3.21 billion, up 3.6% from $3.10 billion in the fourth quarter of 2016, on the back of the acquisitions of RXBAR and Parati.

Net sales in Kellogg's Europe, Latin America and Asia Pacific regions posted growth for the fourth quarter, while sales at its North America segment decreased due to list-price adjustment and the impact of ending its direct store delivery system in U.S. snacks.

Operating profit surged 585.9% to $669 million for the quarter from $98 million.

In 2017, the company posted full-year net income of $1.27 billion, or $3.62 per diluted share, up from $694 million, or $1.96 per diluted share, in 2016.

Kellogg expects 9% to 11% growth for its 2018 adjusted EPS on a currency-neutral basis, saying the new U.S. tax law will contribute 5 to 6 percentage points of the growth. The company had an 8% to 10% growth outlook for EPS in 2017.