Kellanova signaled a strong outlook for 2025 after seeing higher demand for its snack products in its most recent quarter.
The Pringles maker, which agreed to be acquired by Mars for $36 billion in August, saw a 6% increase in organic sales year-over-year and a 16.1% increase in profits, according to its earnings report.
The company said while its North American volumes decreased by 0.5% during the quarter, this was offset by a 1.7% increase in pricing/mix compared to the previous period in 2023. The outcome beat Wall Street earnings projections, according to Seeking Alpha.
Kellanova said the earnings are a positive sign for its ability to withstand economic headwinds facing the food industry as consumers pull back on spending.
The company did not provide comments in an earnings call about its upcoming quarter because of the pending merger. CEO Steve Cahillane said in a statement its sales increase reflects its strong position ahead of the merger.
“This performance is also a testament to the talent and engagement of a Kellanova organization that is executing at a high level as we prepare for our exciting next chapter as part of a global snacking powerhouse with Mars,” Cahillane said.
The purchase of the Cheez-It and Pop-Tarts manufacturer by gum and candy giant Mars was approved by Kellanova’s shareowners Friday with 77.5% of the vote, according to an 8-K form filed with the U.S. Securities and Exchange Commission today. The company said it is awaiting regulatory approval of the transaction and expects it to close in the first half of 2025.
Cahillane told Food Dive in an August interview the Mars purchase will spark innovation between the two companies’ portfolios. He said Kellanova does not anticipate regulatory hurdles in the transaction because the only category the businesses overlap in is snack bars.
Correction: In a previous version of this article, the body that approved Kellanova’s merger was misidentified. The merger was approved by the company’s shareholders.
