© Reuters.
Investing.com — Kellogg Company (NYSE:) shares edged higher ahead of the separation of the company’s snacks and cereal operations on Monday
The stock was up 0.5% on Friday, and is down more than 16% so far this year.
Kellogg previously announced the move to separate the businesses into two independently traded companies. The snack business will become Kellanova, retaining the company’s ticker symbol “K” on the New York Stock Exchange. The cereal business will become WK Kellogg and begin trading at NYSE under the symbol “KLG.”
The company said Kellanova will feature a growth-oriented portfolio that is weighted toward snacks and emerging markets. It is projected to generate net sales of approximately $13.4 billion to $13.6 billion in 2024. It also said it expects Kellanova to deliver long-term annual growth rates of 3% to 5% for net sales on an organic basis. Brands include Cheez-It crackers, Pringles chips, and Pop Tarts, among others.
Meanwhile, WK Kellogg Co will focus and integrate its commercial strategy and execution, while modernizing its supply chain, the company said in a recent statement. That will “result in improved competitiveness, profitability, and cash flow,” it said. Brands include Corn Flakes, Froot Loops, and Apple (NASDAQ:) Jacks cereals.
The company projects net sales for WK Kellogg of approximately $2.7 billion in 2024.
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