Kellanova’s profits have slumped further amid prolonged weak demand for snacks in its primary US market.
The group narrowly reached overall revenue growth of 0.3% to $3.2bn in the second quarter of 2025, thanks to expansion in emerging markets.
However, operating profits were hit for a second successive quarter, falling by 11.2% to $438m.
Kellanova’s organic sales growth was entirely thanks to sustained growth in volume and pricing in the group’s noodle businesses in Africa, which “more than offset” the impact of “lingering softness” in the core snacks, cereal and frozen foods categories elsewhere, according to results posted today (31 July).
North America, which made up half of Kellanova’s Q2 revenue, reported a drop in organic sales of 4% as volumes declined.
And while Europe posted a net sales increase of 2%, the positive momentum was largely down to strong currency exchange rates and improved price and mix rather than volume. On an organic basis, net sales fell by 5% in the region.
“It is a testament to the strength of our people, portfolio, and plans that we continue to manage effectively through challenging business conditions,” said CEO Steve Cahillane.
“While demand softness in most of our categories did not improve as much as we had hoped, we delivered earnings above our expectations in Q2, thanks to our innovation, commercial and operational execution, and emerging markets growth, notably noodles in Africa.”
Cahillane added the company would lean into “focused execution” in the second half of the year as Kellanova prepares for the closing of the merger with Mars – delayed by an ongoing antitrust investigation by the European Commission, which is set to reach a decision by 31 October. The transaction is now expected to close near the end of 2025.
Because of the combination with Mars, Kellanova did not provide forward-looking guidance for its annual performance.
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