Cereal giant Kellogg Company has reported that net sales fell by 2.5% to $3,187 million for the second quarter of the year, ending 2 July 2017.
The company attributes this expected result to ‘soft consumptions trends’ in the US, and reduced merchandising activity in Europe related to pricing actions.
This brings the company’s net sales for the first six months of the year to $6,441 million, representing a decline of 3.3% year-on-year.
However, quarterly operating profit saw marginal growth, increasing by 0.7%, and reported earnings per share increased by 1.3% compared to the same period last year.
Kellogg Company says that second-quarter net sales and operating profit performance improved from the first quarter, as anticipated, while productivity initiatives have continued to improve the company’s profit margins.
The company continues to forecast a decline in currency-neutral comparable net sales of about 3% for the full year 2017, with an increase in comparable operating profit of between 7% and 9%.
“We are encouraged that we remain on track to deliver on our 2017 currency-neutral comparable profit and earnings outlook, even amidst challenging industry conditions,” said John Bryant, Kellogg Company’s chairman and chief executive officer.
“However, we are equally pleased that we are taking the right actions to return our business to top-line growth, which is a priority for us.”