[Click eStock] "Kellogg to Continue Benefiting in Q4 Due to Increased Household Stockpiling Demand"

[Asia Economy Reporter Eunmo Koo] Kellogg (Kellogg·K. US) is expected to continue benefiting in the fourth quarter due to increased household stockpiling demand.

Kellogg's third-quarter sales this year reached $3.429 billion, up 1.7% compared to the same period last year, and operating profit increased by 56.3% to $411 million. Net profit also grew by 40.9% to $348 million. Tae-hyun Kim, a researcher at IBK Investment & Securities, explained in a report on the 23rd that despite sluggishness in away-from-home channels such as restaurants and schools, stockpiling demand increased in the at-home channel (B2C), resulting in slight top-line growth, and profitability improved significantly due to cost reduction effects from business portfolio adjustments.

Kellogg raised its sales growth guidance for this year from 5.0% to 6.0%. Researcher Kim explained, "This is because sales growth in the at-home channel continues while improvements are appearing in the away-from-home channel." He also forecasted, "Considering the average cash dividend payout ratio of 106.5% and the average dividend yield of 3.1% over the past decade (2010?2019), dividends will provide downside support for the stock price."

Founded in 1906, Kellogg is one of the major food manufacturers in the United States, producing about 1,800 products at factories in 17 countries and distributing and selling products in approximately 180 countries. Centered on cereal, Kellogg has expanded its categories through continuous mergers and acquisitions (M&A) to include snacks such as cookies and crackers, frozen foods, and instant noodles.

Its major brands include cereals like Kellogg’s Frosted Flakes, Special K, and Kashi, snacks such as Pringles and Cheez-It, and frozen products like Eggo (frozen waffles) and MorningStar Farms (plant-based frozen foods). In Korea, Nongshim established Nongshim Kellogg in partnership with Kellogg in 1980, and since 1983, it has produced and sold various cereal products including Corn Frost, Chex, and Real Granola.

This content was produced with the assistance of AI translation services.