Kellogg reveals sluggish European sales

By Lorraine Heller

- Last updated on GMT

Related tags: Cent, United states

Kellogg's strong third quarter performance in America and Asia
Pacific offset the company's continuing sluggish European sales, it
emerged this week.

The international breakfast cereals giant revealed a net sales increase for the quarter of 7.3 per cent to $2.62bn (€2.18bn), compared to last year's figure of $2.4bn (€1.9bn). However, European sales lagged behind, hit by high fuel costs and a competitive market. The company reported a sluggish one per cent sales growth in its European division, or a 0.7 per cent decline with currency translation taken into account. The company's figures revealed a 12 per cent decrease in operating profit from its European business, down to $85.2m (€70.9m), compared to last year's figure of $97.1m (€80.8m). The figures show little improvement in Kellogg's European performance since last quarter, when sales were again dragged down by a one per cent decline in European sales. Despite slow sales, the company said its snack products performed well in Europe, with new product launches and investment in brand building resulting in a mid single-digit growth for the pan European snacks business. In contrast, US sales increased by around 8 per cent in the quarter, boosted by brand-building activities and product launches in the first three quarters of the year. US cereal sales were up 11 per cent, with snacks and crackers also performing well. In contrast, cookies and Pop-Tarts toaster pastries both posted a decline in sales in the quarter. Sales in Latin America grew by 10 per cent, while growth in Asia Pacific lugged behind at one per cent. Keeping in line with the growing industry-wide health and nutrition trend, this quarter has seen Kellogg highlighting the benefits of fibre and wholegrains in its cereals in order to promote its product appeal to health conscious consumers in the US. External links to companies or organisations mentioned in thisstory: Kellogg

Related topics: Markets, Kellogg

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