After Kellogg Split, Kellanova and WK Kellogg Both Beat Q3 Sales Estimates Despite Pricing Controversy

Despite the recent split and ongoing pricing controversy, Kellanova and WK Kellogg surpasses Q3 sales estimates with Kellanova recording net sales of $3.94 billion and WK Kellogg reporting sales of $692 million due to increased prices for their cereals and snack products.

• Kellanova, formerly Kellogg Company, reported Q3 net sales of $3.94 billion, a 0.2% decline year-on-year, but surpassing the analyst consensus estimate of $3.62 billion. Organic sales increased by 3.9%.
• As a result of the October split from Kellogg Company, Kellanova and WK Kellogg Co emerged as two independent entities. The separation was completed to allow distinct focus on different aspects of the business.
• Despite increased prices for ready-to-eat breakfast cereals and snacks, both Kellanova and WK Kellogg surpassed Q3 sales estimates. Price hikes resulted in a decrease in overall volumes for Kellanova by 7.4% and WK Kellogg by 13.4%.
• WK Kellogg reported Q3 sales of $692 million, beating expectations of $666.3 million. The cereal business also forecast full-year 2023 adjusted sales in the range of $2.72 billion to $2.74 billion.
• Analysts warn Kellanova to be careful with future price increases as it could push consumers to cheaper private label products. Price elasticities rose as consumers curbed spending due to financial constraints.

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