By Dean Seal

Kellanova reported a deeper revenue decline than expected in the first quarter as foreign currency translation took a big bite out of the top line.

The maker of Pop-Tarts and Rice Krispies Treats had net income of $304 million, or 87 cents a share, up from $267 million, or 78 cents a share, in the same quarter a year earlier.

Stripping out one-time items, adjusted earnings were 90 cents a share. Analysts polled by FactSet had been expecting $1.01 a share.

Revenue slid 3.6% to $3.08 billion, below analyst expectations for $3.18 billion, according to FactSet.

Shifts in foreign exchange rates were a drag on the top line, Kellanova said. On an organic basis, sales were up 1% as higher prices and a stronger mix of products sold offset lower volumes.

The company, formerly known as Kellogg, said it won't provide guidance while it works to close a $30 billion merger with the privately-held candy maker Mars.

Chief Executive Steve Cahillane said the company is managing through an uncertain macroeconomic and industry environment.

"We are planning contingencies and taking action for managing through continued global economic uncertainty, even as we prepare for our next chapter as part of a global snacking powerhouse with Mars," Cahillane said.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

May 01, 2025 08:26 ET (12:26 GMT)

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