Rising sales at home and abroad have buoyed full-year revenue and profits at Kellogg, the US-based cereal giant.
Go deeper with GlobalData
The company shrugged off higher commodity costs and increased marketing expenditure to post a 6% rise in operating profit to US$1.9bn for 2007.
Currency fluctuations helped the result but, after stripping out the effect of exchange rates, operating profit was still up 3%. Revenues rose 8% to $11.8bn and increased by 5% on an organic basis.
“Despite significant additional cost pressures in 2007, our Company posted another year of strong growth,” said David Mackay, Kellogg’s CEO.
Sales in North America rose 5% thanks to growing demand for its cereal and snack products.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataInternationally, where Kellogg generates a third of its turnover, the company’s sales also rose by 5%. Kellogg’s Latin American business matched its performance in 2006, with sales up 9%.
In Europe, Kellogg’s biggest region outside North America, sales jumped 15%. The company flagged rising cereals and snack sales in the UK, its largest market on the continent.
The company, however, said a weak performance in Australia had pulled down the rest of the business in Asia-Pacific. Sales dipped by under 1% during 2007.
The Asia Pacific business posted slightly lower internal sales, decreasing less than 1% for the full year. Internal sales growth was up 2% in the fourth quarter, due to strong performances in Japan, South Korea, India and South Africa, offset by continued weakness in Australia.
