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Kellanova K delivered fourth-quarter 2024 results, wherein the top and bottom lines beat the Zacks Consensus Estimate, and earnings grew year over year. Although sales declined year over year, organic sales increased due to improved volumes and price/mix.
This marked another strong quarterly performance, driven by a growth-focused portfolio and effective execution across the organization. With a robust presence in emerging markets, Kellanova achieved better-than-expected sales growth despite tough industry conditions while improving profit margins at a faster pace than expected.
On Aug. 14, 2024, Kellanova unveiled a deal with Mars, Incorporated (a global leader in pet care, snacking and food), per which Mars will acquire Kellanova for $83.50 per share in cash. The transaction is anticipated to close in the first half of 2025, subject to various approvals. Kellanova is not issuing any guidance due to its pending merger with Mars, Incorporated.
Kellanova Price, Consensus and EPS Surprise
Kellanova price-consensus-eps-surprise-chart | Kellanova Quote
K’s Q4 Performance: Key Insights
Kellanova posted adjusted earnings of 92 cents per share, which increased 17.9% year over year, driven by increased operating profit. On a currency-neutral basis, adjusted earnings per share (EPS) rose 19.2% to 93 cents. The bottom line surpassed the Zacks Consensus Estimate of 82 cents.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The company recorded net sales of $3,124 million, which surpassed the Zacks Consensus Estimate of $3,093 million. However, the top line fell 1.6% year over year. The downside can be attributed to unfavorable currency movements. Organic net sales (excluding currency impacts) grew 7%, driven by improved volumes and price/mix.
Kellanova’s adjusted operating profit increased 14.4% to $448 million while rising 19.9% to $470 million on a currency-neutral basis.
Decoding Kellanova’s Segment-Wise Results
Sales in the North America segment amounted to $1,561 million, down 1.7% year over year due to the adverse price/mix and currency headwinds, partly made up by volume growth. On an organic basis, sales fell 1.5%.
Revenues in the Europe segment totaled $601 million, down 2% year over year due to currency headwinds and soft volumes stemming from category softness. This was partly made up by improved price/mix. Organically, net sales dropped 1.2%.
Revenues in Latin America totaled $303 million, down 7.6% year over year due to currency headwinds, partly made up by the favorable price/mix. Organically, sales ascended 5.5%.
Revenues in the Asia Pacific and the Middle East & Africa segment totaled $659 million, up 2.1% year over year due to improvement in volumes and price/mix, somewhat negated by currency headwinds. Organically, sales jumped 36.4%.