May 1 (Reuters) - Pringles maker Kellanova ( K ) missed
market expectations for first-quarter net sales on Thursday, as
consumer spending weakened in the company's biggest market due
to inflation.
President Donald Trump's sweeping trade policy, which is
expected to raise prices for Americans, has triggered economic
uncertainty in the U.S.
Data showed on Wednesday that the economy contracted in the
first quarter for the first time in three years.
Kellanova ( K ) said it was "planning contingencies and taking
action for managing through continued global economic
uncertainty," as spending is expected to be weak this year.
The company, which is in the process of being bought out by
snacks giant Mars, has been raising prices across markets to
offset the impact of higher input costs.
Rival Hershey also flagged tariffs-related expenses
of about $15 million to $20 million in the current quarter.
Persistent weakness in the snacks and frozen foods
categories led to a 4% fall in first-quarter sales in the United
States, which accounts for about 51% of Kellanova's ( K ) total
business.
The company's sales in Europe and Latin America also fell on
soft demand for cookies and beverages.
On an adjusted basis, Kellanova's ( K ) first-quarter gross margin
fell to 34.9% from 35.7% a year ago.
Its net sales fell 3.7% to $3.08 billion in the three months
ended March 29, compared with analysts' expectation of $3.18
billion, according to data compiled by LSEG.
Its adjusted profit came in at 90 cents per share in the
quarter, compared with market expectations of $1.01.
(Reporting by Juveria Tabassum in Bengaluru; Editing by
Shinjini Ganguli)