Alexia Howard's questions to Kellanova (K) leadership • Q2 2024
Question
Alexia Howard of Sanford C. Bernstein & Co. asked for a specific number on the percentage of sales from innovation this year and whether the current level represents a new long-term normal or if further step-ups are expected. She also inquired about the timing of 2025 guidance.
Answer
Chairman, President and CEO Steven Cahillane declined to provide a specific number for innovation's sales contribution but confirmed it is back to pre-pandemic levels and is expected to improve further with launches like Cheez-It in Europe and Pringles Mingles. He indicated the 2024 level is meaningfully higher than recent years and is beating 2019's strong performance. He also stated that the company has a great innovation calendar for 2025. Regarding future guidance, he confirmed that Kellanova will release its 2025 outlook with its February earnings report, consistent with its usual cadence.