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    Kellanova (K)

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    Kellanova, formerly known as Kellogg Company, is a global leader in the manufacture and marketing of snacks and convenience foods, operating in over 180 countries . The company produces a wide range of snacks, including crackers, savory snacks, toaster pastries, cereal bars, and bites, as well as convenience foods like ready-to-eat cereals, frozen waffles, veggie foods, and noodles . As the world's second-largest producer of crackers, Kellanova is also a leading producer of cereal, savory snacks, and frozen foods . The company operates through four geographic segments: North America, Europe, Latin America, and AMEA (Asia Middle East Africa), with North America being the largest contributor to net sales .

    1. Snacks - Manufactures and markets a variety of snack products, including crackers, savory snacks, toaster pastries, cereal bars, and bites, making it the largest revenue contributor.
    2. Cereal - Produces ready-to-eat cereals, catering to a wide range of consumer preferences and nutritional needs.
    3. Frozen Foods - Offers a selection of frozen food products, including frozen waffles and veggie foods, providing convenient meal options.
    4. Noodles and Other Products - Includes the production and sale of noodles and other convenience food items, expanding the company's diverse product portfolio.
    NamePositionStart DateShort Bio
    Steven A. CahillaneChairman, President, and CEOOctober 2017Steven A. Cahillane has been the Chairman of the Board since March 2018 and has served as President and CEO since October 2017. He previously held leadership roles at Nature’s Bounty Co. and The Coca-Cola Company .
    Amit BanatiVice Chairman and CFOJuly 2019Amit Banati has been the Vice Chairman and CFO since July 2019 and was appointed Vice Chairman in January 2023. He joined Kellanova in March 2012 as President of Asia Pacific, later expanding his responsibilities to include the Middle East and Africa .
    Chris HoodSenior VP & President, Kellanova North AmericaN/AChris Hood serves as the Senior VP & President, Kellanova North America. He will be retiring from the company in April 2024 .
    David LawlorSenior VP & President, Kellanova EuropeJuly 2018David Lawlor is the Senior VP & President of Kellanova Europe. He began his career at Kellanova in 1991 and has held several senior roles, including General Manager of Kellogg Russia .
    Shumit KapoorSenior VP & President, Kellanova AMEAJuly 2020Shumit Kapoor has been serving as the Senior VP & President, Kellanova AMEA since July 2020. Before joining Kellanova, he was the Regional President, Pet Nutrition, Asia Pacific for Mars Inc. .
    Gary PilnickFormer Vice Chairman and Chief Legal OfficerN/AGary Pilnick joined Kellogg Company in September 2000 and served in various roles until October 2023, when he became the CEO of WK Kellogg Co following the spin-off .
    Kurt D. ForcheVice President and Corporate ControllerJuly 2018Kurt D. Forche is the Vice President and Corporate Controller. He joined Kellanova as an internal auditor in 1997 and has held various finance roles .
    Melissa A. HowellSenior VP, Global Human ServicesJune 2016Melissa A. Howell has been serving as the Senior VP, Global Human Services since June 2016. Before joining Kellanova, she was the Chief Human Resources Officer for Wolverine .
    Charisse HughesSenior VP, Chief Growth OfficerMay 2023Charisse Hughes has been the Senior VP, Chief Growth Officer since May 2023. She joined Kellanova in 2020 as Chief Marketing Officer and has held various marketing and brand leadership roles .
    Nicolas AmayaSenior VP & President, Kellanova North AmericaFebruary 1, 2024Nicolas Amaya is the Senior VP & President of Kellanova North America. He joined Kellanova in 2001 and has held various leadership roles in the U.S. and Latin America .
    Kris BahnerSenior VP & Chief Global Corporate Affairs OfficerApril 2023Kris Bahner is the Senior VP & Chief Global Corporate Affairs Officer. She joined Kellanova in 2006 and has over 30 years of experience in Corporate Affairs within the food industry .
    Rodrigo LanceSenior VP, Global Supply ChainMarch 2022Rodrigo Lance has been the Senior VP, Global Supply Chain since March 2022. He began his career at Kellanova in 1997 and has held various roles, including Plant Manager in multiple locations .
    Victor MarroquinSenior VP & President, Kellanova Latin AmericaFebruary 2024Victor Marroquin was appointed as Senior VP & President of Kellanova Latin America in February 2024. He joined Kellanova in 1997 and has held various leadership positions across Latin America .
    John MinSenior VP and Chief Legal OfficerOctober 2023John Min has been the Senior VP and Chief Legal Officer since October 2023. He joined Kellanova in 2010 and has worked in various areas, including food safety and regulatory compliance .
    1. Given that consumers are under significant pressure and your competitor has observed that price points above $4 lead to consumers exiting the category, do you agree that high price points are causing consumers to leave your categories, and how are you adjusting your price-pack architecture to address this issue?

    2. With your gross margins improving as volumes remain constrained and retailers increasingly aware of vendors' margin growth, how are you balancing the drive to improve margins with feedback from retail partners concerned about pricing impacts on consumer affordability?

    3. Are you seeing expected lifts from promotional activities now that you're returning to more normal levels of promotion off higher list prices, and how are these lifts compared to pre-pandemic levels in terms of effectiveness in driving volume?

    4. Considering that many of your competitors and retailers are emphasizing the need for price investments to support consumers under pressure, why do you believe your business doesn't require additional price givebacks, and how confident are you that your current pricing strategy won't adversely affect volume and market share?

    5. With European volumes under pressure due to decelerating pricing and economic challenges, how do you plan to drive growth and balance pricing and volume in this market, especially with upcoming innovations like the Cheez-It launch, and what is your outlook on trend improvements and exit rates in the region?

    Program DetailsProgram 1
    Approval DateDecember 2022
    End Date/DurationThrough December 2025
    Total additional amount$1.5 billion
    Remaining authorization amount$1.3 billion (as of 2024-09-28)
    DetailsFor general corporate purposes and to offset issuances for employee benefit programs
    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2024$678Current maturities of long-term debtN/A11.6% = (678 / 5,853) * 100
    2024$124Notes payableN/A2.1% = (124 / 5,853) * 100
    2025N/A1.250% Senior Notes1.25N/A
    2029N/A0.500% Senior Notes0.50N/A
    2033$4005.25% Notes5.256.8% = (400 / 5,853) * 100
    2034€3003.75% Notes3.75N/A
    2054$3005.75% Notes5.755.1% = (300 / 5,853) * 100
    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers LLP1937 PresentCurrent auditor

    Recent developments and announcements about K.

    Financial Actions

      Debt Issuance

      ·
      Dec 12, 2024, 10:01 PM

      On December 11, 2024, Kellanova, a Delaware corporation, entered into a new unsecured 364-Day Credit Agreement with several financial institutions, including Bank of America, N.A., as the Administrative Agent. This agreement, known as the New 364-Day Credit Facility, allows Kellanova to borrow up to an aggregate principal amount of $750,000,000 on a revolving credit basis. The interest rates applicable to borrowings under this facility are based on the secured overnight financing rate (SOFR), subject to customary floors and adjustments, along with a margin specified in the agreement .

      The New 364-Day Credit Facility includes customary covenants and warranties, such as restrictions on indebtedness and liens, and requires an interest expense coverage ratio of no less than 4.0 to 1.0 for any four consecutive fiscal quarters. It also outlines events of default, which, if triggered, could lead to the termination of commitments under the facility and acceleration of any outstanding loans .

      This new credit facility replaces the previous 364-Day Credit Agreement dated December 19, 2023, which was terminated on the same date the new agreement was executed .

      Potential Effects on Financial Health: The establishment of this credit facility provides Kellanova with significant liquidity, which can be used for general corporate purposes. However, it also introduces a substantial financial obligation that could impact the company's balance sheet and financial health, particularly if the company draws on the facility and incurs interest expenses. The covenants and events of default outlined in the agreement are designed to protect the lenders and ensure the company's financial stability, but they also impose restrictions that the company must adhere to in order to maintain access to this credit line .

      Dividend Policy

      ·
      Aug 14, 2024, 12:00 AM

      Kellanova Announces Dividend Policy Update

      Kellanova has announced that it will continue to declare and pay quarterly dividends consistent with its historical practice prior to the closing of its transaction with Mars, Incorporated. This decision is part of the agreement under which Mars will acquire all outstanding equity of Kellanova for $83.50 per share in cash, representing a total enterprise value of $35.9 billion. The transaction is expected to close within the first half of 2025, subject to shareholder approval and other customary closing conditions, including regulatory approvals .