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Pop-Tarts maker Kellanova beats quarterly sales, profit estimates on steady demand
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Pop-Tarts maker Kellanova beats quarterly sales, profit estimates on steady demand
Feb 6, 2025 6:37 AM

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.

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