Last updated 4 months ago | Originally Published: September 8, 2023

Kellogg’s Snack Division Kellanova Anticipates Robust Sales and Profits After Company Division

In a strategic move to hone in on its snack sector, Kellogg announced last year that it would divide its operations into two distinct entities. The snack-focused unit, named Kellanova, is projected to achieve full-year sales ranging from $13.4 to $13.6 Billion. This announcement comes as the company prepares to finalize its split by year-end.

Kellanova will be the umbrella for popular snack brands such as Pringles, Cheez-It, and Pop-Tarts. Alongside its sales forecast, Kellogg also revealed that Kellanova is likely to post an annual adjusted profit per share in the range of $3.55 to $3.65. This optimistic outlook is a testament to the strength and potential of the snack business, which has been a key focus for Kellogg.

On the other side of the corporate divide, the cereal-focused unit, WK Kellogg, is set to house classic breakfast brands like Kellogg’s Corn Flakes and Froot Loops. This unit is anticipated to generate approximately $2.7 Billion in full-year net sales.

Earlier in the month, Kellogg also updated its profit forecast for the entire company. The firm now expects a less significant decrease in annual profits than initially projected. This adjustment comes after the company implemented several price increases across its breakfast foods and snacks range.

The division of Kellogg into two specialized units is a strategic move aimed at optimizing the focus and resources for each business line. By doing so, the company aims to better meet consumer demands in both the snack and cereal markets. This restructuring is expected to boost sales and enhance profitability in the long run.

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