Global snacking company Kellanova has released its second quarter results for 2025, with reported operating profit down by 11% year on year despite a small increase in net sales.
Kellanova has announced its Q2 results covering the period to 28th June 2025. Net sales showed a 0.3% increase on the same period last year with the company reporting that “volume growth for noodles in Africa was offset by category softness elsewhere” plus a related shift in business mix. For the year-to-date period ending 28th June, reported net sales for the first half of the year are down by 1.7% from $6,392m to $6,268m.
Kellanova reported operating profit in the second quarter decreased by 11% year on year, which the company attributed to a “negative swing in mark-to-market impacts and the profit impact of lower net sales outside Africa”. On an adjusted basis, which excludes mark-to-market impacts and one-time charges, operating profit decreased by 5%, and excluding foreign currency translation, operating profit decreased by 6% for this period.
Reported operating profit for the first half of the year decreased by 2% year on year. On an adjusted basis, operating profit decreased by 9%, and excluding foreign currency translation it decreased by 8%.
European sales
Kellanova revealed that reported net sales for Europe increased by 2% year on year in Q2 and stated that “positive foreign currency translation and improved price/mix more than offset a decline in volume related to prolonged demand softness in snacks and cereal categories, as well as disruption of orders from specific large customers”.
On an organic basis, net sales decreased by 5% and Europe’s reported operating profit decreased by 17% year on year in the quarter, which reflected “up-front charges for network optimisation” as well as the profit impacts of lower net sales and higher costs. Kellanova said that on an adjusted bases, Europe’s operating profit decreased by 9%, and excluding foreign currency translation it decreased by 16%.
“While demand softness in most of our categories did not improve as much as we had hoped, we delivered earnings above our expectations in Q2.”
Chairman, president and CEO of Kellanova Steve Cahillane said in a statement: “It is a testament to the strength of our people, portfolio, and plans that we continue to manage effectively through challenging business conditions.
“While demand softness in most of our categories did not improve as much as we had hoped, we delivered earnings above our expectations in Q2, thanks to our innovation, commercial and operational execution, and emerging markets growth, notably noodles in Africa.
“We plan to continue to lean into focused execution in the second half, even as we continue to work toward closing the Mars transaction and embarking on an exciting next chapter.”
Due to the pending merger with Mars, Incorporated, Kellanova will not be providing forward-looking guidance at this time.
