Kellanova Reaffirms Guidance
Author: Benzinga Newsdesk | May 02, 2024 08:03am
Kellanova Reaffirms its Financial Guidance for the Full Year 2024 The Company again reaffirmed the financial guidance for 2024 that it had first provided in August, 2023, at its Day@K investor event. Despite adverse movements in foreign exchange rates and industry-wide volume pressures since then, the Company is confident in its strengthened commercial plans and initiatives to improve profit margins. Specifically, the Company projects: • Organic-basis net sales growth of approximately 3% or better against a recast 2023, which remains within the Company's long-term target range, and will continue to be led by the Company's priority snacks brands and emerging markets. This is unchanged from previous guidance. • Adjusted-basis operating profit of approximately $1,850-1,900 million, which is unchanged from previous guidance, as underlying sales and margin performance offsets the impact of worsened foreign currency translation, and incremental investment in brands and capabilities. • Adjusted-basis earnings per share of approximately $3.55-3.65, which is unchanged from previous guidance. • Net cash provided by operating activities of approximately $1.7 billion, with capital expenditure of about $0.7 billion, which is elevated this year for the expansion of Pringles capacity in emerging markets. As a result, free cash flow is expected to be approximately $1.0 billion, an estimate that is unchanged from previous guidance.
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