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Kellanova (NYSE:K)

This company has been moved to the archive! The financial data has not been updated since August 1, 2024.

Common-Size Income Statement

Kellanova, common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 30, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 28, 2019
Net sales 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -67.36 -69.87 -67.84 -65.67 -67.73
Gross profit 32.64% 30.13% 32.16% 34.33% 32.27%
Selling, general and administrative expense -21.17 -19.46 -19.80 -21.54 -21.95
Operating profit 11.47% 10.68% 12.35% 12.79% 10.32%
Interest expense -2.31 -1.42 -1.57 -2.04 -2.09
Other income (expense), net -1.23 -1.44 3.08 0.88 1.38
Income from continuing operations before income taxes 7.93% 7.82% 13.86% 11.63% 9.61%
Income taxes -1.97 -1.59 -3.34 -2.35 -2.36
Earnings (loss) from unconsolidated entities 0.05 0.06 0.02 -0.10 -0.05
Net income from continuing operations 6.01% 6.28% 10.54% 9.18% 7.20%
Income from discontinued operations, net of taxes 1.34 0.00 0.00 0.00 0.00
Net income 7.35% 6.28% 10.54% 9.18% 7.20%
Net income attributable to noncontrolling interests -0.10 -0.01 -0.05 -0.09 -0.13
Net income attributable to Kellanova 7.25% 6.27% 10.49% 9.08% 7.07%

Based on: 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).

The financial performance over the five-year period from 2019 to 2023 indicates a period of margin volatility, characterized by a peak in profitability in 2021 followed by a contraction in 2022 and a modest recovery in 2023.

Gross Margin and Production Costs
Gross profit margins fluctuated between 30.13% and 34.33%. A notable decline occurred in 2022, when the cost of goods sold reached a five-year peak of 69.87% of net sales, compressing the gross profit margin to its lowest point of 30.13%. However, 2023 showed a recovery in efficiency, with the cost of goods sold decreasing to 67.36% and gross profit rising to 32.64%.
Operating Efficiency and Profitability
Selling, general, and administrative expenses showed a general downward trend from 2019 (21.95%) through 2022 (19.46%), suggesting improvements in operational efficiency. This trend reversed in 2023, as these expenses rose to 21.17% of net sales. Operating profit peaked in 2020 at 12.79% and remained relatively stable around the 10% to 12% range, ending the period at 11.47% in 2023.
Non-Operating Expenses and Interest
Interest expenses remained relatively stable between 2019 and 2022, ranging from 1.42% to 2.09%, but increased significantly in 2023 to 2.31% of net sales. Other income, net, showed high volatility, transitioning from a positive contribution of 3.08% in 2021 to net expenses of -1.44% in 2022 and -1.23% in 2023, which exerted downward pressure on pre-tax income.
Net Income and Bottom-Line Trends
Net income attributable to the parent company grew steadily from 7.07% in 2019 to a peak of 10.49% in 2021. A sharp decline was observed in 2022, with the margin dropping to 6.27%. While net income from continuing operations remained low in 2023 at 6.01%, the overall net income attributable to the parent recovered to 7.25% due to a significant contribution of 1.34% from discontinued operations.

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