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]
WK Kellogg Co(KLG) - 2025 Q3 - Quarterly Results