- Kellogg's profit fell 8.5% to $205 million from $224 million the year before, which was attributed to costs related to turnaround efforts and other one-time items.
- The company's revenue also dropped 8.5% to $3.33 billion, which came in below average analyst estimates of $3.42 billion. This was Kellogg's eighth quarter of sales declines in nine quarters.
- Sales in Kellogg's snacks business, its largest segment, dropped 1.5%, while sales in the morning foods business, including cereals, decreased by 2.6%. This is the third straight quarter of decreased sales for both businesses.
Kellogg continues to have falling sales overall and in certain segments, particularly cereals and snacks. While snacks are a growing force in the food industry, Kellogg is struggling as more consumers turn toward healthier snacks and away from packaged food varieties. Cereal, on the other hand, has been falling for a few years, due in part to the rise of other breakfast alternatives, like Greek yogurt.
The company has been trying to battle falling sales by offering healthier options in the forms of new products and a refocus on brands like Kashi. In August, the company joined many CPG companies in implementing zero-based budgeting.
In September, Kellogg also announced it would expand to Africa with a $450 million acquisition deal for Tolaram Africa Foods, which would give the company a stronger presence in that growing market.
Kellogg recently announced it would be sourcing 100% cage-free eggs and discontinue the use of gestation stalls in its pork supply chain. This won't affect too many of Kellogg's products, but the company is making the effort as part of a growing movement as food companies think more about animal treatment in their supply chains.