Kellogg raises annual profit outlook on higher prices
(Reuters) -Kellogg Co on Thursday forecast a smaller drop in annual profit than it had previously expected, as multiple price hikes for its breakfast snacks and cereals helped strengthen its margins.
The packaged food giant, like several other industry players such as PepsiCo (NASDAQ:PEP), Conagra Brands (NYSE:CAG) Inc and Hershey, has been consistently raising prices over the past year to safeguard margins from cost pressures tied to raw materials like sugar.
The Corn Flakes maker said it expected 2023 adjusted profit per share to decline between 1% and 2%, compared with the prior forecast for a decline of 1% to 3%.
However, the company posted a 4.6% rise in net sales to $4.04 billion in the second quarter, missing analysts' expectations of $4.07 billion, according to Refinitiv data.
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