October 29, 2019 / 12:31 PM / 7 months ago

UPDATE 1-Kellogg profit beats on higher demand for snacks, frozen foods

(Adds profit, segment sales, share movement)

Oct 29 (Reuters) - Kellogg Co reported quarterly sales and profit above market expectations on Tuesday, benefiting from higher demand for its Pringles and Cheez-It snacks, as well as frozen foods.

Shares of the company rose 3% before the bell after it stuck to its full-year sales forecast.

To offset declining demand for sugary cereals, the maker of Eggo waffles and Cheez-It, has been spending more on new products and promotions, as well as on packaging products to make them easier for consumers to eat on the go.

The efforts helped the company's organic sales, which excludes acquisitions, divestitures and foreign exchange impact, rise 2.4%.

Organic net sales for snacks in North America grew 5.2%, while that for frozen foods grew 0.6%, offsetting a fall in cereal sales in the quarter.

Net sales dropped 2.8% to $3.37 billion due to divestiture of its Keebler biscuits brand and other assets. However, it was above the average analyst estimate of $3.35 billion, according to IBES data from Refinitiv.

Net income attributable to the company fell to $247 million, or 72 cents per share, in third quarter ended Sept. 28, from $380 million, or $1.09 per share, a year earlier.

Excluding items, it earned $1.05 per share and beat the average analyst estimate of 91 cents.

Reporting by Praveen Paramasivam and Soundarya J in Bengaluru; Editing by Arun Koyyur

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