Feb 6 (Reuters) - Packaged food company Kellanova ( K )
beat Wall Street expectations for fourth-quarter earnings on
Thursday, on the back of steady demand for its snacks and
breakfast cereals such as Pringles and Cheez-It.
While other packaged food companies such as Conagra
and McCormick ( MKC ) are facing a demand slowdown as customers
cut back on ready-to-eat meals, Kellanova ( K ) has managed to drive
demand by diversifying its offerings.
Kellanova ( K ) has introduced products such as Tresor Brownie and
also partnered with Taco Bell to add Cheez-It to the fast food
chain's menus.
The Pop-Tarts maker is also seeing customers choose its
cereals and frozen breakfast as they pare back spending at
restaurants to save money.
The company is in the process of being bought out by
family-owned snacking company Mars. As a result, Kellanova ( K ) said
it would not provide a full year forecast.
Kellanova ( K ) has also seen a jump in its gross profit margin
through the year, mainly driven by higher prices and easing
input cost inflation, helping offset increased marketing spend.
Volume grew 2.8% in the quarter, even as pricing rose 4.2%.
The company posted net sales of $3.12 billion, beating
estimates of 3.10 billion according to data compiled by LSEG.
The company earned 92 cents per share in the quarter ended
Dec. 28, beating expectations of 83 cents.