CHICAGO — Kellanova reported second-quarter earnings that missed Wall Street expectations, as U.S. consumers tightened their budgets and opted for lower-cost private-label alternatives, which weighed on demand for its flagship snacks and breakfast items, including Pringles and Pop-Tarts.
The maker of global snacking brands reported adjusted earnings of $0.93 per share, which fell below the consensus estimate of $0.99. Net sales were $3.20 billion, roughly in line with analyst expectations, as a 2.9% decline in pricing was partially offset by a 3.2% increase in organic sales volume, driven by growth in the company’s Africa noodles business.
CEO Steve Cahillane acknowledged that “demand softness in most of our categories did not improve as much as we had hoped,” noting that the company will maintain a focus on execution in the second half of the year while working toward closing its pending $36 billion acquisition by Mars, expected by year-end 2025. “We plan to continue to lean into focused execution in the second half, even as we continue to work toward closing the Mars transaction,” he said.
Kellanova, which spun off its North American cereal operations in 2023 under the WK Kellogg name, faces similar demand challenges flagged by Conagra Brands and General Mills, though peers like Kraft Heinz and Mondelez have recently reported stronger results.
