Kellogg (K) Q1 2023 Earnings Call Transcript

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks：

Operator

Good morning, welcome to the Kellogg Company's First Quarter 2023 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session with publishing analysts.

At this time, I will turn the call over to John Renwick, Vice President of Investor Relations and Corporate Planning for Kellogg Company. Mr. Renwick, you may begin your conference call.

John Renwick

Thank you, operator. Good morning, and thank you, for joining us today for a review of our first quarter results and an update on our outlook for 2023. I'm joined this morning by Steve Cahillane, our Chairman and Chief Executive Officer; and Amit Banati, our Vice Chairman and Chief Financial Officer.

Slide number 3 shows our forward-looking statements disclaimer. As you are aware, certain statements made today such as projections for Kellogg Company's future performance, are forward-looking statements. Actual results could be materially different from those projected. For further information concerning factors that could cause these results to differ, please refer to the third slide of this presentation, as well as to our public SEC filings.

A recording of today's webcast and supporting documents will be archived for at least 90 days on the Investor page of kelloggcompany.com. As always, when referring to our results and outlook, unless otherwise noted, we will be referring to them on an organic basis for net sales and on a currency-neutral adjusted basis for operating profit and earnings per share.

And now, I'll turn it over to Steve.

Steven Cahillane

Thanks, John, and good morning, everyone. We are pleased to be able to report a very strong start to the year. In fact, it was stronger than we had anticipated and puts us in the enviable position of being able to raise our outlook for the full-year. Our topline growth momentum continues as shown on Slide number 5. This was our fourth consecutive quarter of double-digit organic net sales growth. And beneath the magnitude of our Q1 growth are promising trends. We continue to deliver above our long-term growth target. We continue to deliver broad-based growth across each of our four regions and across each of our four major category groups.

Our soon-to-be Kellanova businesses continue to grow strongly, led by snacks in emerging markets, all paced by our highly differentiated world-class brands. Our soon-to-be WK Kellogg Co. businesses continue to show recovery in net sales, consumption and share. We have continued to execute revenue growth management actions across our businesses right through the first quarter in order to keep up with high input cost inflation and we have supported our growth with sustained innovation and with the supply improving, increased brand-building investment. So we feel very good about our topline growth momentum and outlook.