Kellogg Company has announced a first quarter 2015 reported net sales decrease of 5.0% to $3.6 billion, primarily due to the effect of currency translation, however Pringles posted solid sales, Snacks improved, and better trends were seen in Cereals, which makes up about 25% of worldwide sales.
Currency-neutral comparable net sales decreased by 0.3% over the same period, while sales growth was seen in each of the international regions.
“We were pleased to report improved sales trends in the first quarter. In fact, our results exceeded our expectations and we are on track for the year,” said John Bryant, Kellogg Company’s chairman and CEO. “We’ve made great progress with Project K (restructuring program) and are reinvesting to drive profitable sales growth.”
North America posted net sales of $2.4 billion in the first quarter, while currency-neutral comparable net sales fell 2.8%. The US Morning Foods segment posted a currency-neutral comparable net sales fall of 2.9%, including improved trends in the Cereals business.
Currency-neutral comparable net sales in the US Snacks segment decreased by 1.1%, also reflecting an improvement in sales trends.
In Europe, currency-neutral comparable net sales increased by 1.0%, including double-digit comparable net sales growth for the Pringles business.
In Latin America, currency-neutral comparable net sales jumped by 15.7%.
For the Asia Pacific, currency-neutral comparable net sales rose by 4.0% due to good rates of growth in the Asian businesses.
At its February full year 2014 results, Kellogg said it would shift its breakfast cereals to meet consumer demand for foods with healthier and simpler ingredients and launch a new healthy cereal, muesli and granola line called Origins in mid-2015.