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]
WK Kellogg Co(KLG) - 2025 Q2 - Quarterly Results