Kellanova (K) – A Strategic approach to move growth upward

Kellanova (K) (Q2FY23)

Stock performance: Kellanova stock gave returns of -21.3% and -29% in the period of three months and one year. The stock has a 52-week high of $72.46 and a 52-week low of $47.63. The stock gave returns of -19.5% and CAGR of -7% over a period of three years. The stock had a 200-Day Moving Average of $61.31 and a 50-Day Moving Average of $55.22.

Quarter Performance: In Q2FY23, net sales increased 5% to $4.04bn from $3.86bn in Q2FY22 as a result of positive price/mix and sustained momentum in snacks which more than offset the impacts of price elasticity and unfavorable currency. Organic net sales increased 7% from the prior year excluding foreign currency.

Guidance: In FY23 K is expecting its sales to be ~$13000mn and in the range of $13400mn to $13600mn in FY24. The adjusted operating profit is expected to be ~1750mn in FY23. Adjusted EPS is expected to ~$3.35 in FY23 and in the range of $3.55 to $3.65. The company expects a cash flow of ~0.8bn in FY23 and ~1bn in FY24.

Highlights

In Q2FY23, the SG&A expenses of the company increased by 13.2% to $824mn from $728mn in Q2FY22. Moreover, the SG&A expenses of K increased by 16.4% to $1.59bn in H1FY23, compared to $1.37bn in H1FY22.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 37

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