Financial Performance - Full year 2024 reported net sales decreased by 2.0% year-over-year to $2,708 million[4] - Full year 2024 adjusted net income decreased by 9.1% year-over-year to $149 million[4] - Full year 2024 adjusted EBITDA grew by 6.6% year-over-year to $275 million[4] - Fourth quarter reported net income increased by 26.7% year-over-year to $19 million[9] - Fourth quarter adjusted EBITDA increased by 7.5% year-over-year to $57 million[9] - The decline in net sales was attributed to a challenging business environment and unfavorable foreign exchange impacts[7] - WK Kellogg Co reported net sales of $640 million for the quarter ended December 28, 2024, a decrease of 1.7% compared to $651 million for the same quarter in 2023[32] - Adjusted net income for the year ended December 28, 2024, was $149 million, down from $171 million in the previous year[43] - Reported gross profit for Q4 2024 was $200 million, compared to $186 million in Q4 2023, resulting in a reported gross margin of 31.3%[38] - Standalone adjusted EBITDA for the year ended December 28, 2024, was $275 million, an increase from $258 million in 2023[46] Sales and Volume - Price/mix for full year 2024 increased by 2.7%, while volume decreased by 3.7%[8] - The company experienced a volume decline of 5.6% in Q4 2024, while pricing/mix improved by 3.8%[35] Cash Flow and Expenses - Free cash flow for the year ended December 28, 2024, was reported at $(29) million, a significant decrease from $272 million in the previous year[33] - The cost of goods sold for the same quarter was $440 million, down from $465 million, resulting in a gross profit margin improvement[32] - Other expenses excluded from Adjusted EBITDA were $2 million for the quarter ended December 28, 2024, and income of $5 million for the year[56] Debt and Liabilities - Interest expense decreased to $7 million from $10 million in the previous year, indicating improved debt management[32] - The company has defined net debt as the sum of long-term debt and current maturities less cash and cash equivalents, which is used to evaluate changes in capital structure[29] - Net debt increased to $495 million as of December 28, 2024, compared to $410 million as of December 30, 2023[51] - Current liabilities rose slightly to $841 million in 2024 from $836 million in 2023[34] Shareholder Returns - The quarterly dividend was increased by 3% to $0.165 per share[16] - WK Kellogg Co's average diluted shares outstanding increased to 88 million from 86 million year-over-year[32] Restructuring and Separation Costs - The company incurred restructuring costs of $15 million in the latest quarter, while there were no such costs in the same quarter last year[32] - Separation costs related to the Spin-Off amounted to $6 million for the quarter ended December 28, 2024, and $29 million for the year, compared to $13 million and $102 million for the quarter and year ended December 30, 2023, respectively[54] - Restructuring costs related to supply chain reconfiguration were $16 million for the quarter ended December 28, 2024, and $63 million for the year[55] - Estimated standalone costs for operating as a separate public company were $17 million for the year ended December 30, 2023[58] Other Financial Metrics - The company recorded a pre-tax mark-to-market gain of $6 million for commodity and foreign currency contracts for the quarter ended December 28, 2024, while incurring a loss of $1 million for the same period in 2023[53] - The company recorded a loss of $8 million on mark-to-market related to pension plans for the quarter ended December 28, 2024, compared to a gain of $1 million for the same quarter in 2023[53] - The company recognized a net sales impact of $24 million from pre-existing intercompany royalty and sales agreements for the year ended December 30, 2023[57] - The company recorded a gross profit impact of $8 million from intercompany agreements for the year ended December 30, 2023[57]

BATTLE CREEK, Mich., Feb. 6, 2025 /PRNewswire/ -- WK Kellogg Co (NYSE: KLG) today announced that its Board of Directors has approved an increase in its quarterly dividend to $0.165 per share on the common stock of WK Kellogg Co, an increase of 3% from the prior quarterly dividend of $0.16 per share. The quarterly dividend is payable on March 14, 2025, to shareowners of record at the close of business on February 28, 2025. The ex-dividend date is February 28, 2025. About WK Kellogg Co At WK Kellogg Co, we br ...

Core Viewpoint - WK Kellogg Co will present at the Consumer Analyst Group of New York (CAGNY) Conference on February 19, 2025, featuring key executives [1] Group 1: Event Details - The presentation will include Gary Pilnick (Chairman and CEO), Doug VanDeVelde (Chief Growth Officer), Sherry Brice (Chief Supply Chain Officer), and Dave McKinstray (Chief Financial Officer) [1] - A live webcast of the presentation is scheduled to begin at 8 a.m. EST, with a replay available for those unable to attend [2] Group 2: Company Background - WK Kellogg Co was founded in 1894 and is known for its innovative food products, starting with the creation of Corn Flakes [3] - The company offers a portfolio of iconic brands including Kellogg's Frosted Flakes®, Rice Krispies®, Froot Loops®, Kashi®, Special K®, Kellogg's Raisin Bran®, and Bear Naked® [3] - WK Kellogg Co aims to enhance the lives of consumers through high-quality products and a commitment to community well-being [3]

WK Kellogg Co (KLG) is likely to register bottom-line growth when it reports fourth-quarter 2024 earnings on Feb. 11. The consensus mark for earnings has dipped by a penny in the past 30 days to 25 cents per share, which suggests an increase of 38.9% from the figure reported in the year-ago quarter. KLG has a trailing four-quarter negative earnings surprise of 2.3%, on average.The Zacks Consensus Estimate for revenues is pegged at $642.9 million, indicating a 1.2% decline from the prior-year quarter’s repor ...

BATTLE CREEK, Mich., Jan. 15, 2025 /PRNewswire/ -- WK Kellogg Co (NYSE: KLG) announced today that it will host a conference call on Tuesday, February 11, 2025, at 9:30 a.m. EDT, to discuss the company's financial results for the fourth quarter of 2024 and provide an operational update, including indications regarding the performance and outlook of the business. The conference call will be a live audio webcast available at investor.wkkellogg.com. At approximately 8:00 a.m. EDT on that day the company will re ...

Company Overview - WK Kellogg Co is a high-quality franchise in corporate America, having been carved out and separately listed from Kellanova (K) in October 2023 [1] Market Perspective - The company is viewed as an opportunity to own business assets of a high-quality franchise, with a focus on the directional bias of markets [1] - Technical expertise is applied to understand the complex relationships between value drivers, capital flows, and price action [1] Analyst Position - The analyst holds a beneficial long position in WK Kellogg Co (KLG) through stock ownership, options, or other derivatives [2]

Core Viewpoint - Kellogg's stock has been negatively impacted by weak guidance from its peer General Mills, which reported flat sales growth expectations for 2025, despite beating analysts' earnings estimates [1][4] Group 1: Market Performance - Kellogg's shares fell by 14% this week as of Friday morning [3] - General Mills' cereal unit achieved 2% sales growth in the second quarter, contrasting with Kellogg's flat sales and a loss of 30 basis points in U.S. market share [4] Group 2: Competitive Landscape - Post, another primary cereal competitor, has diversified its portfolio by acquiring Potato Products of Idaho, moving away from a sole focus on cereal, unlike Kellogg which remains entirely tied to the cereal industry [2] - General Mills and Post have expanded into pet food and non-cereal breakfast products, indicating a trend of diversification in the cereal sector [2] Group 3: Investment Perspective - Kellogg's focus on the cereal market post-spinoff from Kellanova may streamline operations, presenting a potential value opportunity with a sales multiple of 0.6 compared to Post's 1 and General Mills' 1.8 [5] - Kellogg offers a high-yield dividend of 3.6%, making it an attractive option for value investors [5]

Core Insights - WK Kellogg Co. reported a decline in both top and bottom lines for Q3 2024, with shares dropping 8.1% post-results, although both metrics exceeded Zacks Consensus Estimates [1][2] Financial Performance - Adjusted earnings per share were 31 cents, surpassing the Zacks Consensus Estimate of 26 cents, but down from 33 cents in the same quarter last year [1] - Net sales reached $689 million, exceeding the Zacks Consensus Estimate of $674 million, but reflecting a 0.4% year-over-year decline [2] - Price/mix increased by 1.8%, while volume decreased by 1.1% in the third quarter [2] Profitability Metrics - Adjusted gross profit was $203 million, up from $193 million year-over-year, with adjusted gross margin expanding by 150 basis points to 29.4% [3] - Adjusted EBITDA was $65 million, an 18.2% increase year-over-year, attributed to stronger top-line performance and operational discipline, with an adjusted EBITDA margin increase of 150 basis points to 9.5% [4] Cost Management - Selling, general and administrative expenses were $162 million, down 9.5% from $179 million in the prior year, representing 23.5% of sales, a decrease of 240 basis points [5] Financial Position - As of the end of the quarter, the company had cash and cash equivalents of $47 million, long-term debt of $472 million, and total equity of $316 million [6] - Cash generated from operating activities for the year-to-date period was $98 million [6] Future Guidance - WK Kellogg reiterated its full-year adjusted net sales growth guidance, projecting a decline of 1% to growth of 1%, while upgrading adjusted EBITDA growth expectations to 5% to 6% from a previous range of 3% to 5% [8] - Adjusted EBITDA is expected to be between $271 million and $273 million [8] Interest and Depreciation - Interest expenses are anticipated to be between $30 million and $35 million for the year, with depreciation and amortization expenses expected to be in the range of $75 million to $80 million [9]

Financial Performance - Reported net sales for Q3 2024 were $689 million, a 0.4% decline year-over-year[2]. - Adjusted net sales increased 0.7% year-over-year compared to standalone adjusted net sales[2]. - Reported net income for Q3 2024 was a loss of $11 million, a 126.2% decrease year-over-year[7]. - Adjusted EBITDA for Q3 2024 was $65 million, a 27.5% increase year-over-year compared to standalone adjusted EBITDA[7]. - Year-to-date reported net sales were $2,068 million, a 2.1% decline year-over-year[6]. - Year-to-date adjusted EBITDA was $217 million, a 5.3% increase year-over-year compared to standalone adjusted EBITDA[8]. - The company reaffirms 2024 adjusted net sales growth guidance at the lower end of the range, projected at (1.0)% to 1.0%[9]. - The company raises 2024 adjusted EBITDA growth guidance to a range of 5% to 6%, up from 3% to 5%[9]. Sales and Volume - Price/mix increased by 1.8% in Q3, while volume decreased by 1.1%[5]. - The company experienced a volume decline of 1.1% in tonnage for the quarter, while pricing/mix improved by 1.8%[44]. - Reported net sales for the quarter ended September 28, 2024, were $689 million, a decrease of 0.4% compared to $692 million for the same period in 2023[44]. - Year-to-date reported net sales were $2,068 million, down 2.1% from $2,112 million in the previous year[44]. Costs and Expenses - The cost of goods sold for the quarter was $495 million, slightly down from $496 million year-over-year[38]. - The company incurred restructuring costs of $38 million during the quarter[38]. - Free cash flow for the quarter was $2 million, a significant decrease from $91 million in the prior year[40]. - Cash and cash equivalents at the end of the period were $47 million, down from $89 million at the beginning of the period[42]. - The company incurred pre-tax mark-to-market losses of $3 million for the quarter ended September 28, 2024, and $5 million year-to-date[55]. - Separation costs related to the Spin-Off amounted to $6 million for the quarter and $22 million year-to-date as of September 28, 2024[56]. - Restructuring and non-recurring costs related to supply chain reconfiguration were $42 million for the quarter and $44 million year-to-date as of September 28, 2024[57]. - Other expense of $2 million was excluded from Adjusted EBITDA for the quarter ended September 28, 2024[58]. Assets and Liabilities - Total assets increased to $1.9 billion as of September 28, 2024, compared to $1.889 billion at the end of the previous year[42]. - Total current liabilities decreased to $770 million from $836 million at the end of the previous year[42]. - Long-term debt was reported at $472 million, down from $487 million at the end of the previous year[42]. - Net debt increased to $442 million as of September 28, 2024, compared to $410 million as of December 30, 2023[53]. Profitability Metrics - Adjusted gross profit for the quarter was $203 million, up from $193 million year-over-year, reflecting a strong adjusted gross margin of 29.4% compared to 27.9% in the prior year[45][46]. - Reported gross margin for the quarter was 28.1%, slightly down from 28.4% in the same quarter last year[46]. - Adjusted EPS for the quarter was $0.31, compared to $0.33 in the same quarter last year, reflecting a decrease of 6.1%[50]. - Standalone adjusted net income for the quarter was $27 million, representing an 8.0% increase from $25 million in the same quarter last year[47]. Historical Context - Historical intercompany sales and royalty agreements had a net sales impact of $8 million for the quarter ended September 30, 2023[59]. - Estimated standalone costs for the quarter ended September 30, 2023, were $6 million[60]. - The average number of diluted shares outstanding was 86 million for the quarter[36].

WK Kellogg Co (NYSE: KLG ) is a mid-cap stock that has caught my attention due to its attractive valuation and positioning in the consumer staples sector. As I have written about before on Seeking Alpha, I am anticipating aI am an investor with a passion for uncovering small and medium-sized companies here on Seeking Alpha. I'm also an ETF swing trader, uncovering opportunities via a blend of fundamental and technical analysis and theta-based option writing.Analyst’s Disclosure: I/we have no stock, option o ...