Cereals giant Kellogg Company has reported higher than expected second-quarter profits, as more people choose to eat breakfast at home during the economic downturn.
Net profit jumped 13% to $354m in the three months to 4 July. Total sales fell 3.4% to $3.2bn but would have risen by 3% excluding currency translation and acquisitions rose 3%.
International sales fell 13% during the period but were up 2% excluding currency translation. Sales in Europe, down 1%, were hit by “challenging” negotiations with some European retailers during the first quarter.
The group was on track to deliver $1bn in savings through efficiency initiatives by 2011, chief executive David Mackay said.
“We remain committed to delivering sustainable and dependable performance as we work through the current tough economic environment,” he said. “With strong brands, solid business fundamentals and our focus on managing the business for the long term, Kellogg Company is well positioned in the marketplace.”
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