Kellogg Co (NYSE:K) reported a fourth-quarter FY21 sales decline of 1.3% year-on-year, to $3.42 billion, beating the analyst consensus of $3.39 billion.
Q4 sales were negatively affected by lapping an extra week in the year-earlier period. Adjusted EPS of $0.83 beat the analyst consensus of $0.79.
Kellogg North America's sales decreased 3%, Europe fell 6%, Latin America sales gained 6%, Asia Pacific, Middle East, and Africa's sales jumped 7%.
Selling, general and administrative expenses declined 15.4% Y/Y to $677 million.
The operating margin was 9.6%, and operating income for the quarter fell 14.5% to $329 million.
The reported gross margin was 29.4%, while the adjusted gross margin contracted 400 basis points to 30.2%.
Kellogg held $286 million in cash and equivalents as of January 1, 2022, and generated an operating cash flow for 12 months of $1.7 billion.
"Facing significant cost inflation, worldwide bottlenecks and shortages, and even a labor strike at all of our U.S. cereal facilities in the fourth quarter, the team executed with agility to deliver another year of on-guidance results," said CEO Steve Cahillane.
Kellogg sees FY22 organic net sales growth of about 3%, led by price/mix growth.
Kellogg expects FY22 adjusted EPS growth of 1-2% on a currency-neutral basis.
K shares traded higher by $2.32, or 3.8% at $64.01 first thing Thursday.
