Summary by Moomoo AI
Kellanova reported Q3 2024 net sales decreased 1% to $3.23 billion as unfavorable foreign currency impact offset 6% organic growth. Operating profit rose 10% to $456 million, driven by improved gross margins and transition services reimbursement from WK Kellogg Co. Reported diluted EPS increased 84% to $1.05, while currency-neutral adjusted EPS grew 19.5% to $0.92.North America sales grew 1.1% with strong snacks performance, while Europe sales increased 7.2% on positive pricing. Latin America organic sales rose 4.1% despite currency headwinds, and AMEA organic sales surged 22% though reported sales declined 10% due to Nigerian currency devaluation. Gross margin expanded 230 basis points to 36.4% on favorable mark-to-market impacts and productivity improvements.The company announced a proposed merger with Mars for $83.50 per share, expected to close in first half of 2025 subject to shareholder and regulatory approvals. Management incurred $22 million in merger-related costs and continued executing supply chain optimization initiatives in North America and Europe. The quarterly dividend was maintained at $0.57 per share.
