Latin American demand boosts Kellogg’s sales

The maker of Frosties cereal also grew markets in Asia and Europe
KELLOGG’S saw a jump in quarterly profit and sales yesterday, which was driven by increases in Latin America of six per cent, to $295m in the first quarter ended 4 April.

Asia Pacific also experienced strong growth, while the company’s Pringles business in Europe saw sales rise, even though this was offset by a strong dollar.

The increase in the dollar of around 20 per cent against a basket of major currencies has seen sales denominated in other currencies become less valuable in dollar terms, as about a third of the company’s revenue comes from outside North America.

Meanwhile, sales in Kellogg’s US morning foods business, including cereal, declined almost three per cent to $776m.

Net profit attributable to Kellogg’s almost halved to $227m, or 64 cents per share, for the period largely because of higher expenses related to its cost-cutting and pension plans.