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WK Kellogg Co(KLG) - 2025 Q3 - Quarterly Results
KLGWK Kellogg Co(KLG)2025-05-06 12:00

Financial Performance - Reported net sales for Q1 2025 were 663million,adecreaseof6.2663 million, a decrease of 6.2% year-over-year[5] - Organic net sales decreased by 5.6% year-over-year, driven by reduced retailer inventory and weaker consumption trends[5] - Reported net income was 18 million, reflecting a 45.5% decline year-over-year due to restructuring costs related to supply chain modernization[6] - Adjusted EBITDA for Q1 2025 was 72million,adecreaseof4.072 million, a decrease of 4.0% year-over-year[6] - Net income for the year-to-date period ended March 29, 2025, was 18 million, a decrease of 45.5% compared to 33millionforthesameperiodin2024[26]−AdjustedEBITDAforthequarterendedMarch29,2025,was33 million for the same period in 2024[26] - Adjusted EBITDA for the quarter ended March 29, 2025, was 72 million, compared to 75millionforthesamequarterin2024,indicatingadecreaseof475 million for the same quarter in 2024, indicating a decrease of 4%[35] Guidance and Projections - The company has lowered its 2025 organic net sales growth guidance to a range of (2.0)% to (3.0)% from a previous estimate of ~(1.0)%[3] - Adjusted EBITDA growth guidance for 2025 has been revised to flat to (2.0)% from the prior range of 4.0% to 6.0%[3] - Projected adjusted EBITDA for the full year 2025 is estimated to be between 270 million and 275million[10]CostsandExpenses−RestructuringcostsinQ12025amountedto275 million[10] Costs and Expenses - Restructuring costs in Q1 2025 amounted to 14 million, contributing to the decline in operating profit[25] - The company incurred 14millioninseparationcostsrelatedtotheSpin−OffforthequarterendedMarch29,2025[39]CashFlowandDebt−Freecashflowfortheyear−to−dateperiodwas14 million in separation costs related to the Spin-Off for the quarter ended March 29, 2025[39] Cash Flow and Debt - Free cash flow for the year-to-date period was (62) million, down from 1millioninthesameperiodlastyear[26]−Netdebtroseto1 million in the same period last year[26] - Net debt rose to 570 million as of March 29, 2025, compared to 495millionattheendof2024[37]−Cashandcashequivalentsdecreasedto495 million at the end of 2024[37] - Cash and cash equivalents decreased to 27 million at the end of the period, down from 40millionatthebeginningoftheperiod[27]SalesComposition−Price/mixincreasedby3.040 million at the beginning of the period[27] Sales Composition - Price/mix increased by 3.0% in Q1 2025, while volume decreased by 8.6%[5] - Organic net sales decreased by 5.6% year-over-year, with a volume decline of 8.6% and a pricing/mix increase of 3.0%[28] Assets - Total assets increased to 2,016 million as of March 29, 2025, up from $1,962 million at the end of 2024[27] Tariffs Impact - The company anticipates a modest impact from tariffs on raw materials sourced outside North America[9]