Earlier this year, Kellogg’s announced that it would raise prices to help blunt higher costs due to inflation, while over 1,400 cereal plant employees went on strike due to low wages and long hours. Though the strike has long ended, many consumers are still impacted by the high costs. All the while, the cereal company was still able to have a full year of market growth due to price increases.
In Q1 of this year, Kellogg’s reported a profit of $424 million or $1.23 a share, versus $371 million or $1.07 a share one year earlier, thanks to steady sales growth for its snack brands.
During the Q1 earnings call, Chairman of the Board and CEO Steven Cahillane said: “We grew our net sales faster than we had anticipated, and we delivered more operating profit than we had projected…This puts us in a good position, it allows us to affirm earnings guidance for the full year as an improved net sales outlet covers the impacts of accelerated cost inflation and supply disruptions…”