Kellogg plunges cost in 18 years as cereal maker trims forecast | Fin24
 
In partnership with
  • Load Shedding Schedules

    Find information for Johannesburg, Durban, Cape Town and other cities.

  • Govt Pension Fund

    The fund says it would be wrong to dismiss R250bn Eskom bailout proposal without all the facts.

  • Sovereign Wealth Fund

    Questions around the fund's scope & mandate remain unanswered, writes Dr. Malan Rietveld.

Loading...

Kellogg plunges cost in 18 years as cereal maker trims forecast

Oct 31 2018 16:16
Leslie Patton, Bloomberg

Kellogg shares plunged the most intraday since 2000 after the company cut its profit forecast and reported a decline in US breakfast foods - underscoring the difficult road that packaged food companies are facing as consumer tastes change.

Key Insights

The company assured investors that cereal sales - an area of concern - are turning around. The performance, however, was held back by a June recall of Honey Smacks. Kellogg is trying to boost sales of healthier cereals as consumer preferences shift.

Kellogg cut its full-year profit forecast as it increases investment. Chief Executive Officer Steve Cahillane said higher spending on brands and new pack formats are leading the company to sales growth. Higher distribution and transportation costs also had an impact. The company said it was offsetting these with productivity improvements.

Market Reaction

The shares fell as much as 9.6% to $64.95, erasing the stock’s 5.7% advance this year through Tuesday’s close. The drop was the most intraday since 2000.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

kellogg's
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote

Loading...