(Reuters) -Kellogg Co surpassed market expectations for quarterly sales on Thursday as demand for the Corn Flakes maker’s cereals and snacks held strong even as inflation pinched household budgets.
Americans have so far taken price hikes for snacks and breakfast cereals in stride even as decades-high inflation forces consumers to dial back spending, resulting in increasingly tight household budgets.
Kellogg joins other major food and beverage companies, including Oreo maker Mondelez International Inc, Coca-Cola Co and Hershey, in using its brand power and distribution scale to pass on price increases to consumers while seeing little pushback in demand.
The company’s net sales rose 12% to $3.83 billion in the fourth quarter ended Dec. 31. Analysts had expected revenue of $3.66 billion, based on Refinitiv IBES data.
It reported a net loss of $98 million or 29 cents per share in the quarter, compared to a profit of $433 million or $1.26 per share a year earlier, as Kellogg incurred charges related to its spin-off.
(Reporting by Mehr Bedi in Bengaluru; Editing by Milla Nissi)
