Kellanova (K) Deutsche Bank dbAccess 2024 Global Consumer Conference summary

Progress since the company split

• Two quarters reported post-split, showing faster growth and higher margins as planned.

• Continued investment in five major North American brands and international business drives reliable delivery.

• Operational separation from W.K. Kellogg is progressing smoothly, with distribution network separation underway.

Snacking trends and market performance

• Snacking remains a robust, long-term growth category globally, despite recent price-driven elasticity impacts.

• North America saw recent softness due to price increases, while Europe showed more resilience and low single-digit growth.

• Return to historical merchandising and innovation levels is boosting confidence in future performance.

Consumer outlook and pricing strategy

• U.S. consumers remain resilient, with optimism for the next 12-18 months as wage growth offsets inflation.

• Volume recovery is underway, with price investments returning to pre-COVID norms and not seen as excessive.

• Margin growth continues despite price investments, aided by improved supply chain performance.