Kellogg narrows down loss in Q4 2012

US-based food company Kellogg has reported a narrower net loss of $32m in Q4 2012, compared to a loss of $195m for the same quarter in 2011, supported by its recent acquisition of the Pringles chips business.

The company reported an 18.2% increase in net sales for the quarter ended 29 December 2012 to $3.56bn, compared to net sales of $3.01bn in the corresponding period of 2011.

For full-year 2012, the American cereal maker posted a net income of $961m, compared to net income of $866m in 2011.

Its net sales for fiscal 2012 grew 7.6% to $14.19bn, from $13.19bn in fiscal 2011.

Reported operating profit was $3m in the fourth quarter and $1.6bn for full-year 2012.

Kellogg Company president and chief executive officer John Bryant said that the company delivered strong performance in the fourth quarter of 2012, continuing the sequential improvement it has witnessed all year.

"We met our goals for full-year internal sales, operating profit and earnings per share growth and we made significant investment in future growth," he said.

Kellogg North America’s net sales increased by 12.3% and 7.5% in fourth quarter and full year 2012 respectively, boosted by internal sales growth in all its segments – US Morning Foods & Kashi, US Snacks, US Specialty, and North America Other – while operating profit was up 1.3% in Q4 and 2.7% in 2012.

Net sales of Kellogg International increased by 30.9% in the fourth quarter and 7.7% in 2012 due to sales growth in Latin America and the Asia Pacific business.

However, internal net sales in the European business declined by 3.8% in 2012 and increased by 2.7% in the fourth quarter.

Kellogg International’s operating profit dropped by 4.7% in Q4 and 14.2% for full-year.

In 2013, the company expects net sales to increase by nearly 7% and full-year reported operating profit to increase at a rate faster than the rate of earnings-per-share growth.