Stock Groups

Kellogg raises annual sales forecast boosted by price increases -Breaking


© Reuters. FILE PHOTO: Kellogg’s Corn Flakes, owned by Kellogg Firm, are seen on the market in a retailer in Queens, New York Metropolis, U.S., February 7, 2022. REUTERS/Andrew Kelly/File Photograph

(Reuters) – Kellogg (NYSE:) Co beat quarterly gross sales estimates and raised its 2022 forecast on Thursday, as client demand for the corporate’s cereals and snacks remained resilient even within the face of upper costs.

Shares of the Michigan-based firm rose 3.2% in premarket buying and selling.

Prices from freight and substances reminiscent of wheat, corn and edible oils have surged within the final yr attributable to pandemic-induced disruptions to the worldwide provide chain, forcing the packaged meals business to lift product costs to cushion the hit to their revenue margins.

Demand has up to now held up stronger than anticipated, however analysts warn that demand, particularly for the pricier cereals that Kellogg makes, might gradual later within the yr as rampant inflation exhibits no signal of cooling.

The corporate stated it expects fiscal 2022 natural gross sales to rise 4%, in contrast with its prior forecast of an about 3% improve.

Internet gross sales rose 2.4% to $3.67 billion within the first quarter ended April 2. Analysts on common had anticipated gross sales of $3.59 billion, in line with Refinitiv IBES information.