Kellogg raises forecast for full-year sales, profit
(Reuters) -Kellogg Co raised its full-year forecast for sales and adjusted operating profit on Thursday, banking on higher prices and resilient demand for its breakfast cereals and snacks.
Kellogg, like other global packaged food makers, has been steadily raising product prices over the past year to counter spiraling costs of freight, labor, and ingredients such as wheat, corn and edible oils owing to supply chain constraints.
Although demand, especially for Kellogg’s pricier cereals, has held up quite well so far this year, analysts have warned that it could slow as consumers look to economize amid raging inflation that shows no sign of cooling. The company expects annual core net sales to increase in the range of 7-8%, compared with its prior forecast of about 4% growth.
It also expects adjusted full-year operating profit to rise 4-5% on a currency-neutral basis, above its previous expectation of 1-2% growth.
(Reporting by Mehr Bedi in Bengaluru; Editing by Anil D’Silva)