Kellanova has reported a slight uptick in third-quarter sales, as growth in its African noodles business and currency tailwinds offset weaker demand in snacks, cereals and frozen foods elsewhere.
The Pringles and Cheez-It maker said reported net sales rose 0.9 per cent year-on-year to $3.26bn (£2.68bn) for the three months to 27 September 2025, while organic sales edged down 0.5 per cent. Operating profit dipped 0.6 per cent to $452m, though adjusted operating profit rose 7.3 per cent to $473m, helped by reduced restructuring costs and lower administrative spending.
Earnings per share fell 16.2 per cent to $0.88, largely due to a smaller mark-to-market benefit and the absence of a prior-year tax gain. Adjusted EPS grew 3.3 per cent to $0.94.
Chairman and CEO Steve Cahillane said the company “demonstrated resilience and grit” through ongoing category softness and higher costs. “Amidst this cyclical downturn, we have pivoted toward innovation, productivity and emerging markets expansion, notably noodles in Africa,” he added.
Regional performance
In North America, sales declined 3 per cent, reflecting weaker snacking and frozen food demand. However, reported operating profit jumped 15 per cent, supported by tight cost control and lower restructuring charges.
Europe saw a 1 per cent fall in reported sales and a 27 per cent drop in operating profit, hit by higher costs, reduced volumes and customer order disruptions. On an organic basis, European sales were down 5 per cent.
Latin America sales dipped 1 per cent and operating profit tumbled 47 per cent, with cereal weakness in Mexico weighing on performance.
By contrast, the Asia Pacific, Middle East and Africa (AMEA) division delivered strong growth, with reported sales up 14 per cent and adjusted operating profit up 4 per cent, driven by Africa’s noodles business and broad-based cereal gains.
Outlook and Mars merger
With its $35.9 billion sale to Mars Inc. progressing toward completion by the end of 2025, Kellanova said it would not provide forward-looking guidance. Shareholders approved the deal last November.
The snacking group – whose brands include Pringles, Cheez-It, Pop-Tarts, Eggo, Special K and Coco Pops – posted $13bn in net sales in 2024. It said it continues to focus on innovation and disciplined spending as it prepares to become part of Mars’s global food portfolio.