(Reuters) -Kellanova beat Wall Street estimates for third-quarter sales and profit on Thursday, driven by resilient demand for its ready-to-eat breakfast items and snacks, including Pringles and Pop-Tarts, even as macroeconomic uncertainty looms.
WHY IS IT IMPORTANT
Kellanova has capitalized on the strength of its brands to steadily raise prices, especially in international markets, helping it offset U.S. consumer spending pressures due to President Donald Trump’s fluctuating trade policies.
The Pop-Tarts maker has also seen steady demand for its breakfast staples, as inflation-conscious consumers continue to stock up on essential items despite a broader pullback in discretionary spending.
CONTEXT
Family-owned candy maker Mars, which announced a $36 billion deal to acquire Kellanova in August last year, has secured U.S. antitrust clearance, while EU regulators launched an in-depth probe into the deal in June.
The deal is expected to close towards the end of 2025.
KEY QUOTE
“We managed through prolonged category-wide softness and higher costs,” CEO Steve Cahillane said.
BY THE NUMBERS
Kellanova reported net sales of $3.26 billion in the three months ended September 27, beating analysts’ expectations of $3.25 billion, according to data compiled by LSEG.
The company reported an adjusted profit of 94 cents per share in the quarter, surpassing market expectations of 87 cents per share.
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Vijay Kishore)
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