U.S. food firm’s share price jumps 3.5 per cent after Q1 report
, the American food manufacturer has reported a 23 per cent rise in quarterly profit in the first three months of the 2020, as consumers on both sides of the Atlantic rushed to stockpile foods amid Covid-19 lockdowns.
The Michigan-based corporation reported net income of $347m, or $1.01 per share, in the first quarter, up from $282m, or 82 cents per share, in 2019.
With a market capitalisation of $22.9bn (£18.2bn, €20.9bn), Kellogg’s the second largest snack food company in the world, second only to PepsiCo. In 2012, it acquired Pringles from P&G for $2.7bn.
With billions of people around the world forced to stay home, the novel coronavirus pandemic has triggered what many expect to be the worst recession since the Great Depression. While this may pose threats to Kellogg’s growth in the long-term, in the short-term it has seen an uptick in demand for its products.
The company’s share price has gained 8.76 per cent on the month and trades up 2.76 per cent in mid-afternoon Thursday trading (EDT) at $66.70.
It has not purely been plain sailing for Kellogg however, its quarterly net sales fell from $3.52 in Q1 2019 to $3.41bn as a result of the sale of its Keebler cookie business and other assets to Ferrero SpA.
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