Kellogg introduces financial outlooks for Kellanova and WK Kellogg Co

Kellogg Company remains on track to complete the previously announced separation during the fourth quarter of 2023. At that time Kellogg Company will separate into Kellanova (K) and WK Kellogg Co (KLG), with existing Kellogg shareowners receiving shares in the new WK Kellogg Co. Kellanova will feature a growth-oriented portfolio that is weighted toward snacks and emerging markets, and is led by highly differentiated brands with considerable opportunity for expansion; it projects net sales of approximately $13.4B-13.6B and adjusted-basis EBITDA of approximately $2.25B-2.3B in 2024. Kellanova expects to deliver long-term annual growth rates of 3-5% for net sales (organic basis), 5-7% for operating profit (currency neutral and adjusted basis), and 7-9% for earnings per share (currency neutral and adjusted basis), including in 2024 on a like-for-like basis excluding WK Kellogg Co. Building on a foundation of iconic brands and a leading share position in North American cereal, WK Kellogg Co will focus and integrate its commercial execution and modernize its supply chain, which it expects will result in improved competitiveness, profitability, and cash flow; it projects net sales of approximately $2.7B and adjusted-basis EBITDA of approximately $255M-265M in 2024. Over the next three years, WK Kellogg Co expects to improve its adjusted-basis EBITDA margins by 500 basis points by the end of 2026, through supply chain modernization and a stable top-line trajectory.