Skip to main content
Welcome to
super saver spring
offer ends april 20
save over $140
Sale ends in
$0.99
per week for 24 weeks
Welcome to
super saver spring
$0.99
per week for 24 weeks
save over $140
// //

Kellogg's products sit on the shelves of a supermarket in Zumikon, Switzerland, on Dec. 13, 2016.

Arnd Wiegmann/Reuters

Kellogg Co raised its annual sales and profit forecast on Thursday, as stuck-at-home consumers loaded up on its breakfast cereals due to the COVID-19 pandemic.

The company’s shares rose as much as 2.6 per cent in the morning to hit an over 21-month high.

Work-from-home policies and the school closures to curb the spread of the novel coronavirus have led to a surge in demand for Corn Flakes, Froot Loops and Eggo waffles in North America. Kellogg’s overall organic net sales in the region rose 11 per cent in the second quarter ended June 27.

Story continues below advertisement

However, the company warned that it was not sure how long cereal demand would stay at those elevated levels and warned net sales growth would likely slow in the second half of the year.

“What I’d say about cereal consumption- It’s been pretty choppy. We’re just going to have to continue to take a wait-and-see approach,” Chief Executive Officer Steve Cahillane said.

The jump in sales in the early part of the year was part of a broader rush by consumers to stock up on groceries with other packaged food companies such as Kraft Heinz Co and Hershey Co seeing growing demand.

Overall second quarter net sales stayed at about $3.47 billion, roughly flat from a year ago, due to the sale of Kellogg’s Keebler cookie business last year. Analysts had expected net sales of $3.30 billion, according to IBES data from Refinitiv.

Organic net sales rose 9.2 per cent in the quarter.

Kellogg raised its organic sales growth forecast to about 5 per cent, from a prior outlook of an increase of 1 per cent to 2 per cent. The company also expects annual adjusted earnings per share to fall about 1 per cent, compared with its previous forecast of a 3 per cent to 4 per cent decline.

Excluding items, Kellogg earned $1.24 per share, beating analysts’ average estimate of 94 cents.

Story continues below advertisement

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies