FDBusiness.com

Kellogg Company has reported a 1.4% drop in net sales to $14.6 billion for 2014. Full-year comparable net sales, excluding the effects of foreign currency translation, acquisitions, disposals and costs associated with the Project K efficiency improvement program, decreased by 2.0%. Full-year reported operating profit decreased by 63.9% to $1.0 billion but this included significant impacts from the effect of mark-to-market adjustments and costs associated with Project K. Full-year comparable operating profit decreased by 3.9%.

“In 2014, we have been addressing the challenges we have faced in some of the company’s developed businesses,” says John Bryant, president and chief executive of Kellogg Company. “Project K, our four-year efficiency-and-effectiveness program, is providing flexibility, and we have invested in brand-building initiatives, in-store sales capabilities, and new, improved products. We expect that 2015 will be a rebuilding year for us and that our investment will provide a strong platform for future growth.”

Kellogg North America’s reported net sales decreased by 2.2% for the full year and by 3.4% on a comparable basis. The US Morning Foods segment posted a decrease in comparable net sales of 5.7% for the full year. Net sales at US Snacks fell by 2.4% during the year. The US Specialty Channels business posted a decline of 1.4%, while the North America Other business saw a decline in comparable net sales of 1.8%.

On the international front, Kellogg delivered comparable net sales growth in its Latin American business of 3.9% and of 0.7% in Asia Pacific in 2014. Comparable net sales in the European business decreased by 0.7% for the full year.