By Connor Hart
Kellanova logged lower earnings and largely flat sales in the second quarter, as Chief Executive Steve Cahillane said the company continues to operate in a challenging environment.
The maker of Eggo waffles and Cheez-It crackers on Thursday posted a profit of $299 million, or 85 cents a share, down from $344 million, or $1 a share, in the same quarter a year earlier.
Stripping out one-time items, adjusted earnings were 94 cents a share. Analysts surveyed by FactSet had been expecting 99 cents a share.
Sales edged 0.3% higher to $3.2 billion, in line with Wall Street's projections.
Cahillane said that demand softness didn't improve as much as the company had hoped it would during the recent quarter. Despite current headwinds, he said that the company benefited from the launch of new products and growth in emerging markets, notably noodles in Africa.
The company, formerly known as Kellogg, said it wouldn't provide guidance while it works to close a $30 billion merger with the privately held candy maker Mars.
"We plan to continue to lean into focused execution in the second half, even as we continue to work toward closing the Mars transaction and embarking on an exciting next chapter," Cahillane said.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
July 31, 2025 08:24 ET (12:24 GMT)
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