WK Kellogg Co reported a net income of $72 million for the fiscal year ending December 28, 2024, a decrease from $110 million in the previous year. The company's revenue for the same period was $2.708 billion, down 2% from $2.763 billion in 2023. The decline in revenue was attributed to a 6.4% drop in volume, which was partially offset by a 4.4% increase in pricing and product mix. The company's gross profit margin improved to 29.3%, up from 27.3% in the prior year, reflecting enhanced operational effectiveness within its supply chain.
The company underwent significant changes following its Spin-Off from Kellanova on October 2, 2023, which involved the distribution of shares to Kellanova's shareholders. This restructuring included the establishment of several agreements with Kellanova, such as a Transition Services Agreement, which allows Kellanova to provide certain services to WK Kellogg Co for a limited time. Additionally, WK Kellogg Co announced a restructuring plan in July 2024 aimed at modernizing its supply chain, which includes the closure of its Omaha plant by the end of 2026 and a reduction in production at its Memphis facility.
Operationally, WK Kellogg Co reported a workforce of approximately 3,280 employees as of December 28, 2024. The company’s largest customer, Wal-Mart Stores, Inc., accounted for about 29% of its consolidated net sales during the year. The company also noted that its top five customers collectively represented approximately 52% of its sales, highlighting a concentrated customer base. The company is actively working to expand its market presence and product offerings in response to competitive pressures in the cereal industry.
Looking ahead, WK Kellogg Co anticipates ongoing challenges related to macroeconomic conditions, including inflation and supply chain disruptions. The company is closely monitoring geopolitical developments, particularly regarding potential tariffs on imports from Canada and Mexico, which could impact its operations. Management remains focused on achieving operational efficiencies and enhancing product innovation to drive future growth. The company expects to continue investing in its supply chain modernization efforts while balancing capital expenditures with shareholder returns.
About WK Kellogg Co
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