The cereal maker's European performance dragged down Kellogg's otherwise healthy overall growth in the second quarter. The company reported net sales increased by eight per cent to $2.6bn in thesecond quarter, or by about seven per cent once currency exchange gains are excluded.
Kellogg said it was able to report excellent overall sales growth, operating profit and earnings growth despite increased costs forenergy and raw materials. The company has also made significant investments in its brands to grow its business.
The international sales segment grew by three per cent, once currency rates are excluded. Sales in Latin America grew by eight per cent, while in Europe growth was only one per cent in euro terms.According to Eurostat consumer prices in the EU rose 2.2 per cent in July from a year ago, up from 2.1 per cent in June.
Growth in the European snacks market was offset by unchanged cereal sales, the company said. European results were significantly affected by a trade issue between the US and the EU. The issue hassubsequently been resolved, the company said.
The company had $10bn in sales in 2004. The company produces cereal, convenience foods and meat alternatives.