Kellogg’s Co-Packing Costs Cut into Operating Profit
date:Nov 02, 2018
the incremental growth these pack formats bring us, they do represent a cost and margin headwind for us in the near term.

We do have plans in place to address this for the medium term. As I mentioned last quarter, we are investing in in-house packing capabilities for some of these pack formats, which will reduce manufacturing costs and transportation needs, but this will take a few quarters to get fully ramped up.

Kellogg in the quarter posted net income of $380 million, or $1.10 per share on
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06/25 05:55