Kellanova is optimistic about its outlook for 2025 following a strong performance in its most recent quarter, fueled by increased demand for its snack products.
The company, known for its Pringles brand and set to be acquired by Mars for $36 billion, reported a 6% rise in organic sales and a 16.1% increase in profits, according to its recent earnings report.
Although North American volumes dipped slightly, Kellanova managed to offset this with a 1.7% increase in pricing/mix, surpassing expectations set by Wall Street analysts according to Seeking Alpha.
CEO Steve Cahillane highlighted the company’s resilience in the face of economic challenges, attributing the positive results to the dedication and skill of the Kellanova team as they prepare for the merger with Mars.
The acquisition of Kellanova by Mars, known for its gum and candy products, was approved by shareholders with 77.5% of the vote. The company anticipates regulatory approval in the first half of 2025, paving the way for a new era of innovation and collaboration between the two snacking giants.
In an interview, Cahillane expressed confidence in the merger, citing minimal overlap in product categories as a potential hurdle. He envisions exciting opportunities for synergy and growth between the diverse portfolios of Kellanova and Mars.
Correction: In a previous version of this article, the body that approved Kellanova’s merger was misidentified. The merger was approved by the company’s shareholders.