K Kellanova

By Micah Maidenberg 

Kellogg Co. was helped in the third quarter by its snacks business, but the maker of Rice Krispies again struggled to lift sales of its portfolio of cereals.

Battle Creek, Mich.-based Kellogg reported sales of $3.37 billion for the quarter, slightly more than expectations from analysts polled by FactSet but down from $3.47 billion a year earlier. The company said its sale of Keebler cookies and other brands, a deal that was completed in July, weighed on results compared with the third quarter last year.

On an organic basis, excluding currency fluctuations, mergers and asset sales, sales rose 2.4% in the quarter, Kellogg said.

In the U.S. and Canada, the food manufacturer said stronger demand for snacking products like Pringles and Cheez-It crackers boosted results. But sales of cereals fell, a decline Kellogg attributed in part to softness in the category. Snack sales rose 5% on an organic basis but fell by about the same amount for cereals.

Long a breakfast staple, cereal has struggled in recent years as consumers have opted for more protein-heavy meals at the start of the day and fast-food chains have moved to expand their breakfast businesses.

The company reported a profit of $247 million, or 72 cents a share, compared with $380 million, or $1.09 a share, last year.

Adjusted profit fell to $1.05 a share, but exceeded forecasts from analysts.

Kellogg's costs of goods sold rose about 3% in the quarter. Selling, general and administrative expense fell 6%.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

October 29, 2019 08:55 ET (12:55 GMT)

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