Kellogg: demerger plan in greater detail

(CercleFinance.com) - On Wednesday, Kellogg detailed the terms of its planned demerger, which will see it split into two independent, publicly listed entities in Q4 2023.


The US food group specifies that Kellanova, the company to include its fastest-growing businesses such as snacks and its activities in emerging markets, should generate sales of 13.4 to 13.6bn dollars in 2024, with adjusted EBITDA of $2.25 to $2.30bn.

In the longer term, this entity is expected to post organic sales growth of 3% to 5%, with operating income rising by 7% to 9% (at constant exchange rates).

Regarding WK Kellogg Co, the company that is to include its more traditional cereal activities in North America, this is expected to post more modest sales of around $2.7bn in 2024, for an adjusted EBITDA of $255 to 265m.

Nevertheless, WK Kellogg Co intends to improve its operating margin by around five percentage points over the next three years, thanks to the modernization of its supply chain and its stable growth trajectory.


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