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Kellogg raises forecast for full-year sales, profit

(Reuters) -Kellogg Co raised its full-year forecast for sales and adjusted operating profit on Thursday, banking on higher prices and resilient demand for its breakfast cereals...
Kellogg raises forecast for full-year sales, profit © Reuters. FILE PHOTO: Kellogg's cold cereal products are pictured in a market after Kellogg Company announced it would split into three independent companies, in the latest U.S. corporate overhaul aimed at simplifying its structure and sharpening its focus on the

(Reuters) -Kellogg Co raised its full-year forecast for sales and adjusted operating profit on Thursday, banking on higher prices and resilient demand for its breakfast cereals and snacks.

Kellogg (NYSE:K), like other global packaged food makers, has been steadily raising product prices over the past year to counter spiraling costs of freight, labor, and ingredients such as wheat, corn and edible oils owing to supply chain constraints.

Although demand, especially for Kellogg's pricier cereals, has held up quite well so far this year, analysts have warned that it could slow as consumers look to economize amid raging inflation that shows no sign of cooling. The company expects annual core net sales to increase in the range of 7-8%, compared with its prior forecast of about 4% growth.

It also expects adjusted full-year operating profit to rise 4-5% on a currency-neutral basis, above its previous expectation of 1-2% growth.

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