WK Kellogg Co (KLG) Q1 2025 Earnings Call May 06, 2025 10:00 AM ET Speaker0 Hello, and welcome to WK Kellogg Co. To report First Quarter Results May 6. My name is Harry, and I will be your operator today. All lines are currently in a listen only mode, and there will be an opportunity for Q and A after management's prepared remarks. I I would now like to hand the conference over to Karen Duke, Vice President of Investor Relations. Thank you. Please go ahead. Speaker1 Thank you, Harry, and good morning, every ...

Q1 2025 EARNINGS May 6, 2025 Forward-Looking Statements This presentation contains a number of forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include predictions of future results or activities and may contain the words "expect," "believe," "will," "can," "anticipate," "estimate," "project," "should," "would," or words or phrases of similar meaning. You are cautioned not to rely on these forward- ...

Financial Performance - Reported net sales for Q1 2025 were $663 million, a decrease of 6.2% year-over-year[5] - Organic net sales decreased by 5.6% year-over-year, driven by reduced retailer inventory and weaker consumption trends[5] - Reported net income was $18 million, reflecting a 45.5% decline year-over-year due to restructuring costs related to supply chain modernization[6] - Adjusted EBITDA for Q1 2025 was $72 million, a decrease of 4.0% year-over-year[6] - Net income for the year-to-date period ended March 29, 2025, was $18 million, a decrease of 45.5% compared to $33 million for the same period in 2024[26] - Adjusted EBITDA for the quarter ended March 29, 2025, was $72 million, compared to $75 million for the same quarter in 2024, indicating a decrease of 4%[35] Guidance and Projections - The company has lowered its 2025 organic net sales growth guidance to a range of (2.0)% to (3.0)% from a previous estimate of ~(1.0)%[3] - Adjusted EBITDA growth guidance for 2025 has been revised to flat to (2.0)% from the prior range of 4.0% to 6.0%[3] - Projected adjusted EBITDA for the full year 2025 is estimated to be between $270 million and $275 million[10] Costs and Expenses - Restructuring costs in Q1 2025 amounted to $14 million, contributing to the decline in operating profit[25] - The company incurred $14 million in separation costs related to the Spin-Off for the quarter ended March 29, 2025[39] Cash Flow and Debt - Free cash flow for the year-to-date period was $(62) million, down from $1 million in the same period last year[26] - Net debt rose to $570 million as of March 29, 2025, compared to $495 million at the end of 2024[37] - Cash and cash equivalents decreased to $27 million at the end of the period, down from $40 million at the beginning of the period[27] Sales Composition - Price/mix increased by 3.0% in Q1 2025, while volume decreased by 8.6%[5] - Organic net sales decreased by 5.6% year-over-year, with a volume decline of 8.6% and a pricing/mix increase of 3.0%[28] Assets - Total assets increased to $2,016 million as of March 29, 2025, up from $1,962 million at the end of 2024[27] Tariffs Impact - The company anticipates a modest impact from tariffs on raw materials sourced outside North America[9]

Financial Results - WK Kellogg Co reported its financial results for the first quarter of 2025 and updated its full year 2025 financial outlook [1] - The company will provide additional financial documents including press releases, GAAP reconciliations, and management remarks on its website [1] Live Webcast - WK Kellogg Co will host a live webcast for analysts to discuss its first quarter 2025 results on May 6, 2025, at 10:00 a.m. Eastern Time [2] - The Q&A session will be available for live streaming on the company's investor relations website [2] Company Overview - WK Kellogg Co has a long history dating back to 1894, known for its iconic products such as Corn Flakes and various breakfast cereals [3] - The company emphasizes its commitment to consumer well-being through its brand portfolio and sustainable business strategy, Feeding Happiness™ [3] - WK Kellogg Co aims to create positive impacts in communities while providing nourishing foods that enhance consumer joy [3]

Financial Data and Key Metrics Changes - The company reported a quarterly dividend of $0.01 per share, payable on June 13, 2025, with a record date of May 30, 2025, as part of its strategy to return value to shareholders [25]. Business Line Data and Key Metrics Changes - No specific data on individual business lines was provided during the meeting [17]. Market Data and Key Metrics Changes - No specific market data or key metrics changes were discussed in the meeting [17]. Company Strategy and Development Direction - The company is focusing on its "Feeding Happiness" sustainable business strategy, which aims to make eating well easy, help kids be their best, and better communities [20][22]. - The initiative "Mission Tiger" has reached over 2 million kids in more than 3,000 schools, promoting access to sports [22][23]. - The company emphasizes the importance of understanding its impact on people and the planet as essential for sustainable business practices [24]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's commitment to ethical, responsible, and sustainable operations, continuing the legacy of its founder [21][24]. - The company views itself as a "119-year-old startup," indicating a forward-looking approach and ongoing innovation [26]. Other Important Information - The meeting utilized a virtual format to enhance accessibility for shareholders [2]. - The board of directors recommended the reelection of three nominees and the approval of executive compensation, which were all approved by shareholders [19]. Q&A Session Summary - There were no questions or comments from shareholders regarding the proposals during the meeting [18].

Group 1 - WK Kellogg Co declared a dividend of $0.165 per share on its common stock, payable on June 13, 2025, to shareholders of record at the close of business on May 30, 2025, with an ex-dividend date of May 30, 2025 [1] Group 2 - WK Kellogg Co has a rich history dating back to 1894, known for its iconic products such as Corn Flakes, Frosted Flakes®, Rice Krispies®, and Froot Loops®, which have significantly impacted breakfast culture [2] - The company emphasizes a sustainable business strategy called Feeding HappinessTM, aiming to enhance the well-being of families and communities through its food products [2]

The market expects WK Kellogg (KLG) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider WK Kellogg (KLG) . This company, which is in the Zacks Consumer Products - Staples industry, shows potential for another earnings beat.This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 43.62%.For the most re ...

BATTLE CREEK, Mich., April 16, 2025 /PRNewswire/ -- WK Kellogg Co (NYSE: KLG) will host a live virtual webcast of its 2025 Annual Shareholder Meeting on Thursday, May 1, 2025, at 1:00 PM ET.Information about the webcast, which will include both the audio and slide presentation from the meeting, is available on the Investor Relations page of our website at investor.wkkellogg.com. Only Shareholders will be permitted to participate.A rebroadcast will be available 24 hours after the meeting, and available for a ...

WK Kellogg (KLG) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a chang ...