Kellogg said its earnings for the first quarter were down 33% in its most recently ended quarter. This, the company said was due to lower revenue, currency exchanges and higher expense for interest hurting the bottom line of the company.
Per share adjusted earnings beat estimates of analysts though its revenue came up short analyst’s expectations.
The company, based in Michigan, has been maintaining a tight control on its costs while working to revamp its snack and cereal brands to become more relevant to the change in tastes of the consumer.
Kellogg has fought for a number of years with weaker sales that were hurt partly by the consumers in the U.S. shunning cereals dense in carbohydrates.
John Bryant the CEO said that actions the company is taking are having a strong impact and we have remained confident that they will help drive the continued improvement as the year progresses and then into 2017.
During its Thursday news release, Kellogg said it was continuing to make progress as trends continue improving across its different businesses, notably in the share of the U.S. cereal market.
The company announced that its cereals that are Kellogg-branded had gained 0.2% in the market share during the three-month period.
The company ‘s business in North America still posted a decline in net sales of 1.5% ending the quarter at $2.4 billion. Its sales for the U.S. in the morning foods business were down 1.2%
Overall, the cereal maker reported a $175 million profit equal to 49 cents per share, which was less than last year during the same period of $227 million equal to 64 cents per share.
Excluding negative impacts involving currency, charges related to transformation and other items that were one-off, earnings per share increased from 98 cents to $1.33.
Revenue fell 5.5% to just over $3.4 billion. Excluding impacts from currency, mostly due to its business in Venezuela, sales were up over 6.6%.
Analysts that were polled expected profit per share to be 94 cents and that revenue would reach $3.47 billion.
Kellogg logged interest expense of $217 million during the most recently quarter, in comparison to $54 million for the same period last year. The increase ate into the company profit.
In 2015, Kellogg was the most recent big food maker in the U.S. to adopt zero-base budgeting tools that have become popular due to needing to cut costs amidst weak demand for the traditional packaged foods.