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Kellanova misses sales estimate as spending in US slows
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Kellanova misses sales estimate as spending in US slows
May 25, 2025 11:19 PM

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)

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