Kellanova (NYSE:K) posted quarterly earnings that came in ahead of expectations, while revenue was broadly in line with analyst projections, as the maker of Pringles continues to navigate industry-wide softness and rising costs.
The company reported earnings per share of $0.94, topping the consensus estimate of $0.87. Revenue reached $3.26 billion, up roughly 1% year-over-year and marginally above the expected $3.24 billion. On an organic basis, sales totaled $3.21 billion.
Adjusted operating profit rose 7.3% from a year earlier to $473 million, reflecting improved cost management and efficiency gains.
Kellanova chose not to provide forward-looking guidance as it prepares for its pending merger with Mars Inc., which is expected to close in the near term.
Chief Executive Officer Steve Cahillane said: “Once again our organization demonstrated resilience and grit as we managed through prolonged category-wide softness and higher costs. Amidst this cyclical downturn, we have pivoted toward innovation, productivity, and emerging markets expansion, notably noodles in Africa, and our prioritized expenditure helped us again deliver earnings above our expectations in the third quarter. In the meantime, we continue to work toward closing the Mars transaction and embarking on our exciting next chapter.”
The strong profit result underscores the company’s focus on operational discipline and its strategic shift toward innovation and emerging market growth as it moves closer to completing the Mars deal.