BATTLE CREEK, Mich., Oct. 16, 2024 /PRNewswire/ -- WK Kellogg Co (NYSE: KLG) announced today that it will host a conference call on Thursday, November 7, 2024, at 9:30 a.m. EDT, to discuss the company's financial results for the third 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 rel ...

If WK Kellogg's management can deliver on its promise of higher margins, an investment today could outperform over the long run. Corporate spinoffs can be an odd investment proposition. Often, when companies split up, one of the resulting businesses seems like the "desirable" asset to own, while the other gets spurned by investors. Typically, that unloved company is the one that winds up with the parent's less exciting operations or the businesses with lower projected growth. Indeed, the performance gaps be ...

Financial Performance - Net sales for the quarter ended June 29, 2024, were $672 million, a decrease of 4% compared to $700 million for the same period in 2023[7]. - Operating profit increased to $47 million for the quarter ended June 29, 2024, compared to $28 million in the same quarter of 2023, representing a 68% increase[7]. - Net income for the quarter was $31 million, up from $27 million in the prior year, reflecting a 15% increase[9]. - Basic earnings per share for the quarter were $0.37, compared to $0.32 in the same quarter of 2023, marking a 16% increase[7]. - The company reported a year-to-date net income of $64 million for the period ended June 29, 2024, compared to $53 million for the same period in 2023, an increase of 21%[9]. - Comprehensive income for the quarter was $39 million, compared to $37 million in the same quarter of 2023, indicating a 5.4% increase[9]. - Net income for the quarter ended June 29, 2024, was $64 million, an increase from $53 million in the same quarter of 2023, representing a 20.8% growth[19]. - EBITDA for the quarter ended June 29, 2024, increased 40% to $70 million compared to $50 million in the prior year[91]. - Adjusted EBITDA decreased 12% for the quarter ended June 29, 2024, to $78 million compared to $89 million in the prior year[89]. - Reported gross profit for the quarter ended June 29, 2024, was $196 million, with a gross margin of 29.1%, an increase of 1.8 percentage points from the prior year[92]. Expenses and Costs - Selling, general and administrative expenses decreased to $149 million for the quarter ended June 29, 2024, down from $163 million in the same quarter of 2023, a reduction of 8.6%[7]. - Total net cash provided by operating activities decreased to $37 million from $140 million year-over-year, a decline of 73.6%[19]. - The company recorded a net loss on the sale of receivables of $5 million for the quarter ended June 29, 2024, compared to a loss of $4 million in the same quarter of 2023[34]. - The total pension expense for the quarter ended June 29, 2024, was $1 million, and for the year-to-date period, it was $2 million[41]. - The total postretirement benefit income for the quarter ended June 29, 2024, was $(10) million, and for the year-to-date period, it was $(20) million[42]. - The Company recorded operating lease costs of $4 million for the quarter and $7 million for the year-to-date period ended June 29, 2024[47]. - The Company incurred pre-tax charges of $2 million related to supply chain network reconfiguration for the quarter ended June 29, 2024[87]. - The company incurred pre-tax separation costs of $8 million for the quarter ended June 29, 2024, compared to $40 million for the same quarter in 2023, showing a significant reduction in costs[86]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $44 million, a decrease from $2 million at the end of the previous year[19]. - Free cash flow for the year-to-date period ended June 29, 2024, was $(10) million, a decrease from $80 million in the prior year[107]. - Net cash used in investing activities was $47 million for the year-to-date period ended June 29, 2024, compared to $56 million in the prior year[108]. - Net cash used in financing activities was $33 million for the year-to-date period ended June 29, 2024, down from $82 million in the prior year, primarily due to $27 million in dividend payments[109]. - As of June 29, 2024, borrowings under the Credit Facility were $490 million, with an additional $600 million of borrowing capacity available[101]. Market and Strategic Focus - The company is focused on expanding its market presence and enhancing product offerings through new strategies and technologies[7]. - The Company is focused on leveraging marketing expertise and product innovation to respond to a challenging retail environment characterized by consolidation among large U.S. retail customers[80]. - The Company plans to close its Omaha, Nebraska plant with full closure targeted by the end of 2026, as part of its strategic priority to modernize its supply chain[67]. - The Company expects cumulative restructuring pretax charges of between $230 million and $270 million due to the reorganization plan, including $30 million to $40 million in cash costs for severance and other termination benefits[68]. - The geopolitical instability, particularly the war in Ukraine and related sanctions, continues to create inflationary pressures on commodity costs, despite the company's lack of direct exposure to these regions[79]. - The company has implemented productivity initiatives and revenue growth management actions to offset input-cost inflation, demonstrating proactive financial management[78]. Equity and Dividends - The company declared dividends of $0.16 per share during the quarter, totaling $13 million[12]. - The Board of Directors declared a dividend of $0.16 per share, payable on September 14, 2024[109]. - The total equity as of June 29, 2024, was $336 million, up from $300 million at the end of December 30, 2023[12]. Derivative Instruments and Financial Instruments - The total notional amounts of the Company's derivative instruments as of June 29, 2024, were $328 million, including $251 million in foreign currency exchange contracts and $77 million in commodity contracts[56]. - The Company recognized a loss of $(1) million in cost of goods sold related to commodity contracts for the quarter ended June 29, 2024[59]. - The Company does not have any derivatives designated as hedging instruments, and the fair value of its financial assets and liabilities is measured on a recurring basis[58]. Inventory and Receivables - As of June 29, 2024, accounts receivable, net decreased to $217 million from $244 million as of December 30, 2023, reflecting a decline of approximately 11%[63]. - The Company’s inventories increased to $360 million as of June 29, 2024, compared to $345 million as of December 30, 2023, representing a rise of approximately 4%[63]. - Accounts receivable sold under monetization agreements amounted to $313 million as of June 29, 2024, compared to $266 million as of December 30, 2023[111].

Kellogg's stock was recently down 2.5% to $15.72 after the bank's analysts cut their rating on the stock to "underperform" from "neutral" and their price target to $17 from $24. Kellogg's "value creation story lies in meaningful 2026 margin expansion which now seems less assured," the analysts wrote. Do you have a news tip for Investopedia reporters? Please email us at Shares of Rice Krispies and Special K maker WK Kellogg (KLG) slipped Wednesday after Bank of America Securities put a bearish rating on the ...

Too often spinoff stocks don't perform well out of the gate. Because an investor bought the business of the parent company, he doesn't care too much about whatever side project is being shed. When the spinoff stock shows up in his account, he sells it and banks the "free" cash. However, investing legend Joel Greenblatt says spinoffs are actually a great buying opportunity. In his classic investing book, "You Can Be a Stock Market Genius," Greenblatt says because the discarded unit was never able to be prope ...

Our fair value estimate for WK Kellogg Co. (Spin-Off) stands at $23.00 (Previously $12.50) per share based on a 2024e EV/ EBITDA multiple of 9.0x (~3% discount to peer median multiple of 9.3x). We maintain a 'Hold' rating on WK Kellogg Co. with an implied upside of 5.6% from the current market price of $21.77 as of 5/10. The upgrade in our target price is due to the stable top-line performance, with improved margins since 4Q23 results. The company raised its FY24 guidance in its 4Q and FY23 results on the b ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-41755 WK Kellogg Co State or other jurisdiction of incorporation or organization— Delaware IRS Employer Identi ...

Exhibit 99.1 WK Kellogg Co Financial News Release Analyst Contact: Karen Duke (269) 401-3164 Matt Harrison (269) 401-3326 Media Contact: Stacy Flathau (269) 401-3002 WK Kellogg Co Announces First Quarter Financial Results; Company Reaffirms 2024 Guidance BATTLE CREEK, Mich. - May 7, 2024 - WK Kellogg Co (NYSE: KLG), a leading manufacturer, marketer and distributor of branded ready-to-eat cereal in the U.S., Canada, and Caribbean, today reported financial results for its first quarter ended March 30, 2024. F ...

BATTLE CREEK, Mich., May 2, 2024 /PRNewswire/ -- WK Kellogg Co (NYSE: KLG) today announced that its Board of Directors declared a dividend of $0.16 per share on the common stock of WK Kellogg Co, payable on June 14, 2024, to shareowners of record at the close of business on May 31, 2024. The ex-dividend date is May 31, 2024. About WK Kellogg Co At WK Kellogg Co, we bring our best to everyone, every day through our trusted foods and brands. Our journey began in 1894, when our founder W.K. Kellogg reimagined ...

BATTLE CREEK, Mich., April 18, 2024 /PRNewswire/ -- WK Kellogg Co (NYSE: KLG) announced today that it will host a conference call on Tuesday, May 7, 2024, at 9:30 a.m. EDT, to discuss the company's financial results for the first 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 release ...