Kellogg: exploring the sale of cookies, fruit snacks
(CercleFinance.com) - Kellogg shares were largely unchanged on Tuesday, after the company said it was exploring the sale of its cookies and fruit snacks divisions to focus on its "core" businesses, including breakfast cereals.
Analysts at Credit Suisse estimate the two units represent about 700 million in sales (5% of total sales) and 112 million dollars in operating profit.
"If the company sells the business for 1.3 billion dollars, we believe the transaction would be roughly 3% dilutive to 2019 EPS," the broker said.
Kellogg also said that, as from January 2019, its organizational structure will be redesigned to win market share in the US and deliver top-line growth.
The stock was inching up 0.2% at 64.4 dollars after these announcements.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Analysts at Credit Suisse estimate the two units represent about 700 million in sales (5% of total sales) and 112 million dollars in operating profit.
"If the company sells the business for 1.3 billion dollars, we believe the transaction would be roughly 3% dilutive to 2019 EPS," the broker said.
Kellogg also said that, as from January 2019, its organizational structure will be redesigned to win market share in the US and deliver top-line growth.
The stock was inching up 0.2% at 64.4 dollars after these announcements.
Copyright (c) 2018 CercleFinance.com. All rights reserved.